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[2018] NSWCA 339
Court of Appeal (NSW)
2018-12-07
Basten JA, Meagher JA, Leeming JA, Parker J
Original judgment source is linked above.
Solicitors: Vincent Young (Appellant) HWL Ebsworth Lawyers (First Respondent) Not represented (Second Respondent) File Number(s): 2018/328636 Decision under appeal Court or tribunal: Supreme Court Jurisdiction: Equity - Commercial List Citation: [2018] NSWSC 1578 Date of Decision: 19 October 2018 Before: Parker J File Number(s): 2018/287463
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
Judgment
Statutory scheme
Application of principles
e. The Respondent then submits that: i. I have no jurisdiction to consider and determine the backcharges in this Adjudication Application ii. The Respondent is precluded from including matter not the subject of its Payment Schedule as they were not part of the Payment Claim, no submissions in respect of the backcharges are made in the Adjudication Response. f. In excluding the abovementioned variations, the Respondent submits that the total contested amount is $282,203.15. 5.3 Adjudication Conclusion I reviewed the reconciliation and note the following: 1. A number of items in the payment claim included claimed amounts that were in excess of amount that I had previously determined 2. The payment schedule included amounts for a number of items that were in excess of amount that I had previously determined 3. In providing the reconciliation, the Claimant has adopted the previously determined amounts and this has resulted in the Claimant now pressing the lesser amount of $2,779,237.59 (including GST), compared to the claimed amount of $3,664,918.40 (including GST) 4. I am not convinced that the Respondent has understood the Claimant's reconciliation as illustrated by their notation concerning the 'Deletion of [Plenum] Walls' in their reconciliation at Paragraph 33 of the adjudication response. The notation states that 'no amount claimed but pressed in adjudication application' whereas, the amount pressed is a previously determined deduction of -$257,000.00 5. In respect of the Respondent's submission that backcharges were not included in the payment schedule, I note the following: a. Progress Payment Certificate 33 dated 30 July 2018, which is included as an attachment to the payment schedule, includes a variation amount to the contract of $13,934,843.87. The variation amount was used in the calculation of the schedule amount on page 15 of the payment schedule. In calculating he variation amount, the Respondent both itemised and included deductions for: Variation 14 Deletion of Plenum Walls ($306,863) Identified as Variation 30 Variation 66 Deletion of paint to fire stairs ($93,938) Variation 72 Lift Speeds ($661,763) Variation 73 Ground Floor Glass ($142,441) Variation 76 Green Tinge Glass ($236,309)
b. While the payment schedule (pages 3 to 14) includes a table of assessed items together with reasons and which exclude the foregoing variations, it is clear that the deductions associated with the above variations form part of the payment schedule and have accordingly been scheduled by the Respondent, albeit with no specific reason provided 6. I do not agree with the Respondent's submission that as the Claimant had not 'disputed or claimed in its Payment Claim the backcharges previously set-off by the Superintendent', these being Variations 14, 66, 72, 73 and 76, I do not have jurisdiction to consider these items. My reasons are: a. As referenced in Point 5 above, the variation amounts were included in the payment schedule and are part of the difference between the claimed amount and the scheduled amount, this being $2,281,159.00 (excluding GST), as opposed to the $282,203.15 (excluding GST) which the Respondent submits should be the scope of my determination considerations. The significant difference of itself tests the credibility of the Respondent's submission b. It is my understanding that in Denham Constructions Pty Ltd v Islamic Republic of Pakistan (No 2) [2016] ACTSC 215, the court rejected the argument that because a valuation was not previously contested, it was now subsequently excluded from challenge in an adjudication application. … 7. Having regard to the foregoing, I have used the Claimant's reconciliation in identifying the contested or disputed amounts that I must consider in this determination 8. I note that the Claimant has included previously determined amounts that were not addressed in either the payment claim or the payment schedule. Consistent with my conclusion in Section 4.7 above and Section 22(4) of the Act, I have adopted the previously determined amounts in my reconciliation summary 9. My understanding of the Claimant's reconciliation and the amounts now disputed, is summarised in Table 2 below."
Orders
Endnotes
Icon Co (NSW) Pty Ltd
Australia Avenue Developments Pty Ltd
[1999] HCA 21
[2016] ACTSC 215
(2004) 61 NSWLR 421
(2010) 78 NSWLR 393
(2007) 69 NSWLR 72
(2008) 236 CLR 120
(2018) 92 ALJR 780
(1999) 197 CLR 611
(2018) 92 ALJR 248
(2002) 209 CLR 597
(2003) 145 FCR 1
(1909) 10 CLR 114
[2008] HCA 43