Security of Payments Commercial CPD Seminar. Wednesday 11 April 2018 Associate Professor Katy Barnett Melbourne Law School

Similar documents
CASE NOTES PROBUILD CONSTRUCTIONS (AUST) PTY LTD V SHADE SYSTEMS PTY LTD [2018] HCA 4

Building and Construction Industry Security of Payment Act what does it do and how does it work? John K. Arthur 1

IN THE SUPREME COURT OF VICTORIA AT MELBOURNE COMMERCIAL COURT TECHNOLOGY ENGINEERING AND CONSTRUCTION LIST

JOHN HOLLAND PTY LTD v CHIDAMBARA DENIAL OF NATURAL JUSTICE AND JURISDICTIONAL ERROR IN ADJUDICATION PROCEEDINGS A CASE NOTE I.

Projects Disputes in Australia: Recent Cases

INPEX OPERATIONS AUSTRALIA PTY LTD v JKC AUSTRALIA LNG PTY LTD DENIAL OF NATURAL JUSTICE IN ADJUDICATION PROCEEDINGS A CASE NOTE I.

CORRS CONSTRUCTION LAW UPDATE JULY 2016

CORRS CONSTRUCTION LAW UPDATE MARCH 2016

Industrial Relations Amendment (Public Sector Conditions of Employment) Act 2011 No 13

PROBUILD CONSTRUCTIONS (AUST) PTY LTD v DDI GROUP PTY LTD [2017] NSWCA 151 Court of Appeal: Beazley ACJ, McColl and Macfarlan JJA

AN OVERVIEW OF THE BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT

Australia s Last Best Hope for National Security of Payment Legislation?

Security of Payment Legislation and Set-Off Under Commonwealth Insolvency Laws

IN THE SUPREME COURT OF VICTORIA AT MELBOURNE COMMERCIAL COURT TECHNOLOGY, ENGINEERING AND CONSTRUCTION LIST

Multi-Country Survey on Covenants Not to Compete

THE VALIDITY OF ADJUDICATORS DETERMINATIONS CONTAINING ERRORS OF LAW: THE NSW JUDICIAL APPROACH

APPEALS FROM VCAT TO THE SUPREME COURT

WILL AUSTRALIA ACCEDE TO THE HAGUE CONVENTION ON CHOICE OF COURT AGREEMENTS? MICHAEL DOUGLAS *

Adjudicators Discussion 15 June 2016

FEDERAL COURT OF AUSTRALIA

TABULA RASA : TEN REASONS WHY AUSTRALIAN PRIVACY LAW DOES NOT EXIST OUR COURTS HAVE NOT YET DEVELOPED THE GENERAL LAW

EXPERT EVIDENCE THE RULES FOR EXPERT EVIDENCE IN AUSTRALIA

Contractual Interpretation: A Roundabout Approach

Court of Appeal Supreme Court. New South Wales. Abergeldie Contractors Pty Ltd v Fairfield City Council

SUPREME COURT OF QUEENSLAND

Brodyn P/L t/as Time Cost and Quality v Davenport [2004] Adj.L.R. 11/03

GST & forfeited deposits High Court decision

BUILDING AND CONSTRUCTION CASES 2018

Proportionate Liability in Queensland: An Overview

GAUTAM MUKHERJI PROFILE BARRISTER - VICTORIAN BAR CONTACT INFORMATION SOCIAL NETWORK

SUPREME COURT OF QUEENSLAND

SUPREME COURT OF QUEENSLAND

LAW INSTITUTE OF VICTORIA ALTERNATIVE DISPUTE RESOLUTION CONFERENCE 2011

Victorian Bar Readers Course Entrance Examination Reading Guide

Are claims for breach of the implied warranties in domestic building contracts apportionable claims? An overview of the positions in NSW, VIC and QLD

Entrance Examination Victorian Bar Readers Course General information for candidates intending to sit the exam on 3 November 2017

UPDATE INSURANCE HUNT & HUNT LAWYERS V MITCHELL MORGAN NOMINEES PTY LTD & ORS APRIL 2013 VELLA OVERTURNED BY HIGH COURT

APPLICATION OF COSTS IN ADMINISTRATIVE LAW PROCEEDINGS

Rights to Reasons - What is Adequate?

THE FEDERAL LAW REPORTS EDITOR VICTOR KLINE. Barrister-at-Law CONSULTING EDITORS ANTHONY DICKEY QC DR OREN BIGOS PRODUCTION EDITOR

Victorian Bar Entrance Examination

FACULTY OF LAW: UNIVERSITY OF NSW LECTURE ON JUDICIAL REVIEW 28 MARCH 2012

CORRS CONSTRUCTION LAW UPDATE NOVEMBER 2016

Moresi Builders Pty Ltd (ACN )

How to assess a development application under the Sustainable Planning Act 2009

Interpretation of Delegated Legislation

SUPREME COURT OF QUEENSLAND

SUPREME COURT OF QUEENSLAND

SOME KEY CONCEPTS IN FOR CIVIL PRACTIONERS

CONSTITUTIONAL COURT OF SOUTH AFRICA

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 210 OF 2007 STATE BANK OF PATIALA APPELLANT MUKESH JAIN & ANR.

ADEQUACY OF REASONS. By Justice Emilios Kyrou, Supreme Court of Victoria

Letter STUDENT NUMBER LEGAL STUDIES. Written examination. Wednesday 9 November 2016

CHOICE OF LAW (GOVERNING LAW) BOILERPLATE CLAUSE

Discrimination Law Review: A Framework for Fairness. Response by Commission for Racial Equality. September Executive Summary of Recommendations

Index (2006) 22 BCL

ADMINISTRATIVE LAW THE EMERGING ROLE OF CONSTITUTIONAL AND PRIVATE LAW REMEDIES

SIMON PITT PROFILE BARRISTER - VICTORIAN BAR CONTACT INFORMATION SOCIAL NETWORK BACKGROUND

The Court view of security of payment legislation in operation

SUPREME COURT OF QUEENSLAND

INTERNATIONAL ARBITRATION: ENFORCING ARBITRAL AWARDS AND INDEMNITY COSTS

REFORMING CIVIL PROCEDURE IN VICTORIA TWO STEPS FORWARD AND ONE STEP BACK?

New South Wales Court of Appeal

1 This matter is listed for hearing on Thursday 17 February 2011 at am for one day.

Unit 5 : ADJUDICATION

SUFFICIENCY OF REASONS IN ARBITRATION AWARDS

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : CONSUMER PROTECTION ACT, Date of Decision: W.P.(C) 8285/2010 & C.M. No.

1 Respondents application pursuant to Section 75 of the Victorian Civil and Administrative Tribunal Act 1998 is dismissed. 2 Costs reserved.

Speaking Out in Public

TOPIC 2: Jurisdiction to Conduct Judicial Review

Adjudication. Information note. Adjudication

Under consumption: the Australian Consumer Law (ACL) and its application to personal injury 1

ANDREW YUILE PROFILE BARRISTER - VICTORIAN BAR CONTACT INFORMATION SOCIAL NETWORK

LICENCE SEARCH - COMPANY

Enforcement Officers Conference

Timing it right: Limitation periods in personal injury claims

SUPPLEMENT TO CHAPTER 20

Standing Road Map. The Question

You have received this notice because you are a group member in this proceeding.

CAVEATS AGAINST DEALINGS IN LAND WHEN TO LODGE AND HOW TO REMOVE PRESENTED ON 14 FEBRUARY 2014 NICHOLAS JONES, BARRISTER

TAJJOUR V NEW SOUTH WALES, FREEDOM OF ASSOCIATION, AND THE HIGH COURT S UNEVEN EMBRACE OF PROPORTIONALITY REVIEW

HIGH COURT OF AUSTRALIA

SUPREME COURT OF QUEENSLAND

Compulsory Acquisition and Informal Agreements: Spencer v Commonwealth

SUPREME COURT OF QUEENSLAND

Adjudication under the Amended Victorian SOP Act

BUILDING CONTRACTS RESPONSIBILITY FOR FAILURE TO CERTIFY PROGRESS PAYMENTS WHERE ARE WE NOW?

Security of Payment Roundup. SYD v1

SKRINE ADVOCATES & SOLICITORS. IS CONSTRUCTION INDUSTRY AND PAYMENT ADJUDICATION ACT 2012 RETROSPECTIVE OR PROSPECTIVE? Shannon Rajan Partner SKRINE

CONSENTS AND APPROVALS BOILERPLATE CLAUSE

National Farmers Federation

High Court of Australia Transcripts. Society of Lloyd's v White M101/1999 (11 February 2000)

Industrial Relations (Commonwealth Powers) Act 2009 No 115

SA ADJUDICATION APPLICATION FORM

Chapter 12. State Attorneys-General as First Law Officers and Constitutional Litigants. The Honourable Michael Mischin

October PO Box Melbourne VIC DX 128 Melbourne Tel Fax justiceconnect.org.au

SUPREME COURT OF QUEENSLAND

VCAT S NATURAL JUSTICE OBLIGATIONS. By Justice Emilios Kyrou, Supreme Court of Victoria. Paper delivered at the VCAT on 23 June 2010

CASE NOTES. New South Wales

Some observations on appeals from arbitration awards. Geoff Farnsworth Principal, Macpherson + Kelley, Sydney

Transcription:

Security of Payments Commercial CPD Seminar Wednesday 11 April 2018 Associate Professor Katy Barnett Melbourne Law School

Probuild and Victorian Law Judicial review in the nature of certiorari is available for jurisdictional error: see eg, SSC Plenty Road v Construction Engineering (Aust) [2015] VSC 631 and Krongold Constructions (Aust) v SR & RS Wales [2016] VSC 94 an adjudicator must demonstrate the process of assessment of the value of the claim and not merely adopt the amount claimed by the claimant the latter will constitute jurisdictional error which is reviewable. But there is also a line of cases expressly say that judicial review in the nature of certiorari is available for error on the face of the record (i.e. non jurisdictional error). A few central cases: Hickory Developments Pty Ltd v Schiavello (Vic) Pty Ltd & Anor [2009] VSC 156, (2009) 26 VR 112 Grocon Constructors v Planit Cocciardi Joint Venture (No. 2) [2009] VSC 426 Amasya Enterprises Pty Ltd v Asta Developments (Aust) Pty Ltd [2015] VSC 233 Two reasons for this, per Vickery J in the above cases: The Victorian Act has an express privative clause, s 25R(5)(a)(ii) of the SOP Act, which provides that once a determination has been entered as a judgment debt it cannot be set aside for nonjurisdictional error (see Amasya on this). It suggests that if the legislature had wanted a broader exclusion of non jurisdictional error it would have said so explicitly. Moreover, s 85(5) of the Victorian Constitution says that an Act will not limit the jurisdiction of the VSC unless a statement is made in legislation in stipulated terms. A s 85 statement was only made in relation to s 25R and s 46 of the Vic SOP Act, and not other parts of the Act.

Can the Victorian cases survive Probuild? Probuild suggests that intention must be read looking at the Act as a whole. The features of the NSW Act which led the HCA to decide that non jurisdictional error was not subject to judicial review are also present in the Vic SOP Act (including short timelines, informality etc). Prima facie, it therefore seems that the Victorian authority is wrong. However, Vickery J rightly observes that s 85 of the Victorian Constitution requires an express statement where an Act derogates from the VSC s jurisdiction. There is not an express statement in the Victorian SOP Act. Moreover s 25R(5)(a)(ii) of the Act only covers judgment debts. What happens to cases like Ian Street Developer Pty Ltd v Arrow International Pty Ltd [2018] VSC 14 and PHHH Investments No. 2 Pty Ltd [2018] VSC 15? In both, adjudication out of time was held by Riordan J to be a non jurisdictional error (i.e. adjudications still valid). Obviously such adjudications would not be subject to judicial review in NSW in light of Probuild would the situation be different in Victoria? Both Ian Street and PHHH are subject to appeal. It could be argued that the purposes of the Act are stultified by the Victorian Constitutional requirement. On the other hand, the right to apply for relief for error on the face of the record has been interpreted very narrowly, so it may not matter (see Grocon must be no probative evidence supporting the adjudication for review to be allowed). Toby Shnookal and Matthew Bell have both noted that in the end, the Victorian position is not so different from the other States.

Can the Victorian cases survive Probuild? (continued) However, note Milburn Lake Pty Ltd v Andritz Pty Ltd [2016] VSC 3 (Forrest J), where an injunction restraining a claimant under the Act from entering judgment was granted (subject to paying moneys into court) in order to permit the other party to seek to set aside the adjudication on the basis of non jurisdictional error. Edelman J s observation at [105] of Probuild suggests that this case is now wrong Parliament cannot have intended to create a race to court. Even accepting the HCA s distinction between reviewable jurisdictional errors and non reviewable non jurisdictional errors, there still remains a question of how strict courts should be on adjudicators for the purposes of jurisdictional error: SSC Plenty Road v Construction Engineering (Aust) [2015] VSC 631 and Krongold Constructions (Aust) v SR & RS Wales [2016] VSC 94

Final thoughts on Probuild Does Probuild further the purposes of the SOP legislation? Yes, it sends a clear message that parties cannot delay payment by raising non jurisdictional errors. I think at the least, Milburn Lake Pty Ltd v Andritz Pty Ltd [2016] VSC 3 must now be wrong. As Matthew Bell has observed, there has always been a concern to strike an appropriate balance between speed and justice with SOP legislation. The HCA balance has come down in favour of speed ( pay now, argue later ) What about the Victorian Act? How will Probuild affect it? Should Victorian courts tend more in the direction of speed rather than individual justice? Should the Victorian Act now include an express provision limiting review for nonjurisdictional error which references s 85 of the Victorian Constitution? More broadly: is the SOP legislation working? Yes. It appears to be working (interested in your thoughts, however). Can SOP legislation be improved? Hot topic! Under review by the Commonwealth government John Murray s review expected soon. Key issues include: harmonisation (East Coast versus West Coast), coherent and readily understandable limits on the kinds of claims brought (cf ss 10, 10A and 10B of Victorian SOP Act), better guidance on when contractual dispute resolution trumps adjudication, enforcement of judgment debts, status of privative clauses excluding review.