Galileo Miranda Nominee Pty Ltd v Duffy Kennedy Pty Ltd [2019] NSWSC 1157

Supreme Court New South Wales

Medium Neutral Citation: Galileo Miranda Nominee Pty Ltd v Duffy Kennedy Pty Ltd [2019] NSWSC 1157 Hearing dates: 1, 2, 3 July 2019; 9 August 2019 Date of orders: 06 September 2019 Decision date: 06 September 2019 Jurisdiction: Equity - Technology and Construction List Before: Parker J Decision: 6 September 2019 Catchwords: CONTRACT – Breach of Contract – where Principal sought order that Contractor complete penetration schedule and provide copies of subcontracts – whether Principal's take-out notice valid – whether Contractor entitled to suspend works by non-payment of interest on progress claim under Building and Construction Industry Security of Payment Act 1999 (NSW) – whether Contractor failed to proceed with due diligence in a competent manner and failed to comply with principal certifier's occupation certificate requirements – whether Contractor otherwise validly suspended works with "reasonable cause".

BUILDING AND CONSTRUCTION – construction contracts – Building and Construction Industry Security of Payment Act 1999 (NSW) – whether Contractor entitled to suspend works by Principal's non-payment of interest on progress payment – whether interest accrued under s 11 forms part of "scheduled amount" under s 27(1) – "scheduled amount" comprises amount respondent "proposes to make" identified in payment schedule but excludes interest under s 11 - need to quantify interest in final way - accrual of interest to be interpreted consistently with statutory entitlement under Civil Procedure Act 2005 (NSW), s 100.

CONTRACT – Breach of Contract – whether Contractor entitled to suspend contract with "reasonable cause" by acting reasonably and in good faith – whether "reasonable cause" determined subjectively or objectively – suspension without "reasonable cause".