Weekly Construction Law Review Friday, 20 March 2015 View in browser

A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
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Weekly Construction Law Review

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Khouzame v All Seasons Air Pty Ltd [2015] FCAFC 28
Full Court of the Federal Court of Australia
Robertson, Wigney & Gleeson JJ
Bankruptcy – respondent was subcontractor retained by appellant – payment dispute arose – adjudication carried out pursuant to Building and Construction Industry Security of Payment Act 1999 (NSW) – adjudication concluded respondent entitled to payment – adjudication certificate issued – Local Court entered judgment for respondent – bankruptcy notice issued on application of respondent – primary judge dismissed application to set aside bankruptcy notice – primary judge found respondent’s failure to file affidavit at time of seeking entry of judgment as required by s25 did not rise as high as abuse of process for bankruptcy law purposes – statutory construction - held: adjudication certificate only became enforceable as judgment for debt when it may be filed and it cannot be filed unless accompanied by affidavit specified in s 25(2) – appeal allowed – bankruptcy notice set aside.
Khouzame
BHP Billiton Ltd v Dunning [2015] NSWCA 42
Court of Appeal of New South Wales
Basten, McFarlane & Meagher JJA
Workers compensation - worker suffering from mesothelioma claimed illness caused by inhalation of asbestos dust and fibre in course of employment with BHP - worker claimed BHP was negligent and breached its statutory duties - Tribunal found in worker’s favour - s3B(1)(b) Civil Liability Act 2002 (NSW) - held: primary judge did not err in finding BHP breached duty of care because it did not take available practical alternative measures which would have reduced worker’s exposure to asbestos - no error in admission of former employee’s evidence, in finding worker exposed to asbestos dust and fibre during course of employment or in findings concerning available practical alternative measures - appeal dismissed.
BHP Billiton Ltd
Nazero Group Pty Ltd v Top Quality Construction Pty Ltd [2015] NSWSC 232
Supreme Court of New South Wales
Hammerschlag J
Security of payments - plaintiff and first defendant entered agreement under which first defendant would do formwork and concreting for plaintiff - payment dispute arose - adjudicator made determination in first defendant’s favour - plaintiff sought to quash adjudication - first defendant sought order requiring plaintiff to pay unpaid portion of adjudicated amount as security into Court pending final determination of proceedings - s25(4)(b) Building and Construction Industry Security of Payment Act 1999 (NSW) required payment of such amount into Court pending determination of proceedings to set aside a judgment based on adjudication, however in this case first defendant had not filed adjudication as judgment for a debt - exercise of discretion in particular circumstances of case - s25 held: policy of not served by removing first defendant’s protection pending determination of plaintiff’s challenge even though s25(4)(b) did not apply in terms - manifestly unfair use of Court’s process to permit plaintiff to mount its challenge without having to pay  money into Court - proceedings stayed unless plaintiff paid unpaid portion of amount into Court.
Nazero
Secure Funding Pty Ltd v Stark;; Secure Funding Pty Ltd v Conway [2015] NSWSC 223
Supreme Court of New South Wales
McCallum J
Default judgment - appeals against primary judge’s decision to set aside default judgments for possession of properties in separate proceedings - defendants also sought leave to amend defence - whether arguable defence on grounds of unconscionable conduct - ss12CB, 12CC, 12GM Australian Securities and Investments Commission Act 2001 (Cth) - s237 Australian Consumer Law - held: defences raised were reasonably arguable - no error in concluding default judgments should be set aside despite the procedural history - proposed amendments allowed - appeals dismissed.
Secure
Barry v Queensland Building and Construction Commission [2015] QSC 50
Supreme Court of Queensland
Flanagan J
Building and construction – applicants sought declaration that Direction to Rectify and/or Complete given by Commission on 22/8/14  pursuant to Queensland Building Construction Commission Act 1991 (Qld) was void – applicants contended direction was given out of time – direction required to be given within 6 years and 3 months after  completed - time limit for giving directions – s72(8) – determination of what constituted the building work to which the direction relates - held: the building work to which the direction relates was completed on issue of final certificate on or about 26/8/08 – direction given by Commission was within time for purposes of s72(8) – declaratory relief refused – application dismissed.
Barry
Avopiling (WA) Pty Ltd v Central Systems Pty Ltd [2015] WASC 82
Supreme Court of Western Australia
Allanson J
Contract - parties disputed amounts owing under construction contract - plaintiff issued writ - in exchange of phone text messages, defendant offered and plaintiff accepted an amount ’in full and final settlement’ - whether parties formed enforceable agreement to settle dispute which included settlement foreshadowed counterclaim by defendant - held: parties demonstrated intention to make legally binding agreement - agreement in full and final settlement of dispute - declarations made.
Avopiling (WA) Pty Ltd