Civil Contractors (Aust) Pty Ltd v Galaxy Developments Pty Ltd & Ors; Jones v Galaxy Developments Pty Ltd & Ors [2021] QCA 10 (2021) 7 QR 34
SUPREME COURT OF QUEENSLAND
CITATION: Civil Contractors (Aust) Pty Ltd v Galaxy Developments Pty
Ltd & Ors; Jones v Galaxy Developments Pty Ltd & Ors
[2021] QCA 10
PARTIES: In Appeal No 4543 of 2020:
CIVIL CONTRACTORS (AUST) PTY LTD T/A CCA
WINSLOW
ACN 169 588 194
(appellant)
v
GALAXY DEVELOPMENTS PTY LTD
ACN 607 628 919
(first respondent)
THOMAS JONES
(second respondent)
THE ADJUDICATION REGISTRAR (QUEENSLAND
BUILDING AND CONSTRUCTION COMMISSION)
(third respondent)
In Appeal No 4449 of 2020:
THOMAS JONES
(appellant)
v
GALAXY DEVELOPMENTS PTY LTD
ACN 607 628 919
(first respondent)
CIVIL CONTRACTORS (AUST) PTY LTD T/A CCA
WINSLOW
ACN 169 588 194
(second respondent)
THE ADJUDICATION REGISTRAR (QUEENSLAND
BUILDING AND CONSTRUCTION COMMISSION)
(third respondent)
FILE NO/S: Appeal No 4543 of 2020
Appeal No 4449 of 2020
SC No 12292 of 2019
DIVISION: Court of Appeal
PROCEEDING: General Civil Appeals
ORIGINATING
COURT: Supreme Court at Brisbane – [2020] QSC 51 (Dalton J)
DELIVERED ON: 2 February 2021
DELIVERED AT: Brisbane
HEARING DATE: 16 September 2020
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JUDGES: Fraser and McMurdo JJA and Jackson J
ORDERS: In Appeal No 4543 of 2020:
1. Appeal dismissed.
2. The appellant to pay the first respondent’s costs of the
appeal.
In Appeal No 4449 of 2020:
1. Appeal dismissed.
2. The appellant to pay the first respondent’s costs of the
appeal.
CATCHWORDS: STATUTES – ACTS OF PARLIAMENT – STATUTORY
POWERS AND DUTIES – CONSTRUCTION – GENERALLY
– where an adjudicator held that Civil Contractors (Aust) Pty
Ltd (“CCA”) should recover an adjudicated amount of
$1.4 million from Galaxy Developments Pty Ltd (“Galaxy”) –
where, on Galaxy’s application, the primary judge held that the
adjudicator’s decision was delivered beyond any relevant time
limit under Building Industry Fairness (Security of Payment)
Act 2017 (“the Act”), and at least for that reason, was void –
whether, upon the proper construction of the Act, the
adjudicator’s jurisdiction is defined by the relevant time limit,
in that the adjudicator’s powers cease once the time limit has
passed
STATUTES – ACTS OF PARLIAMENT – INTERPRETATION
– SCHEDULES – where the primary judge held that upon the
proper construction of the Queensland Building and
Construction Commission Act 1991 (“the QBCC Act”) and the
Queensland Building and Construction Commission
Regulation 2018 (“the QBCC Regulation”), CCA did not hold
a building licence to carry out all of the work in question, with
the consequences that the building contract under which CCA
claimed to be paid was void and for that reason also the
adjudicator’s decision was void – where CCA held a building
licence in the category “Builder restricted to structural
landscaping licence” – whether some of the works carried out
by CCA were outside the scope of its licence
APPEAL AND NEW TRIAL – APPEAL - GENERAL
PRINCIPLES – INTERFERENCE WITH JUDGE’S
FINDINGS OF FACT – OTHER MATTERS – where the
primary judge found that the adjudicator could not be said to
have acted in good faith, and that the adjudicator had made
a misrepresentation, with the consequence that the adjudicator
was not entitled to be paid any fees – whether the findings of
bad faith and misrepresentation ought to have been made
without providing the adjudicator with an opportunity to be
heard on those subjects – whether, given the adjudicator failed
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to make a decision on the application within the required time,
the adjudicator is entitled to be paid any fees
Building and Construction Industry Security of Payment Act
2002 (Vic), s 22(4), s 23(2B), s 28(2)(a)
Building Industry Fairness (Security of Payment) Act 2017
(Qld), s 85, s 86, s 94, s 95
Queensland Building and Construction Commission Act 1991
(Qld), s 42
Queensland Building and Construction Commission
Regulation 2018 (Qld), sch 1
Cranbrook School v JA Bradshaw Civil Contracting [2013]
NSWSC 430, considered
Ian Street Developer Pty Ltd v Arrow International Pty Ltd
[2018] VSCA 294, considered
Project Blue Sky Inc v Australian Broadcasting Authority
(1998) 194 CLR 355; [1998] HCA 28, applied
COUNSEL: P Dunning QC, with R M De Luchi, for the appellant in
Appeal No 4543 of 2020 and the second respondent in
Appeal No 4449 of 2020
M D Martin QC, with P Hackett, for the first respondent in
Appeal No 4543 of 2020 and Appeal No 4449 of 2020
D Toomey SC, with D Hume, for the second respondent in
Appeal No 4543 of 2020 and the appellant in Appeal
No 4449 of 2020
No appearance for the third respondent in Appeal No 4543 of
2020 and Appeal No 4449 of 2020
SOLICITORS: HWL Ebsworth Lawyers for the appellant in Appeal No 4543
of 2020 and the second respondent in Appeal No 4449 of 2020
Evans Lawyers for the first respondent in Appeal No 4543 of
2020 and Appeal No 4449 of 2020
Moray and Agnew Lawyers for the second respondent in
Appeal No 4543 of 2020 and the appellant in Appeal
No 4449 of 2020
No appearance for the third respondent in Appeal No 4543 of
2020 and Appeal No 4449 of 2020
[1] FRASER JA: I agree with the reasons for judgment of McMurdo JA and the orders
proposed by his Honour.
[2] McMURDO JA: The principal issue in these appeals is the effect of an adjudicator’s
decision, purportedly made under the Building Industry Fairness (Security of
Payment) Act 2017 (“the Act”), but beyond the time limit for the decision which the
Act specifies. An adjudicator, Mr Jones, held that Civil Contractors (Aust) Pty Ltd
(“CCA”) should recover an adjudicated amount of $1.4 million from Galaxy
Developments Pty Ltd (“Galaxy”). On Galaxy’s application, the primary judge held
that the adjudicator’s decision was delivered beyond any relevant time limit under the
Act, and at least for that reason, was void.1
1 Galaxy Developments Pty Ltd v Civil Contractors (Aust) Pty Ltd t/a CCA Winslow & Ors [2020]
QSC 51 (“the primary judgment”).
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[3] The primary judge also accepted Galaxy’s alternative argument, which was that upon
the proper construction of the Queensland Building and Construction Commission
Act 1991 (“the QBCC Act”) and the Queensland Building and Construction Commission
Regulation 2018 (“the QBCC Regulation”), CCA did not hold a building licence to
carry out all of the work in question, with the consequences that the building contract
under which CCA claimed to be paid was void, and for that reason also the
adjudicator’s decision was void.
[4] CCA appeals against that judgment by which a declaration was made that the decision
was void, challenging each of the grounds for it. For the reasons that follow, I agree
with the judge’s conclusion as to the legal consequence of the lateness of the
adjudicator’s decision, so that CCA’s appeal should be dismissed. As I will also
explain, I respectfully disagree with the judge’s conclusion on the other issue.
[5] The other appeal here is by the adjudicator. The primary judge declared that he was
not entitled to be paid any fees or expenses for or in relation to the adjudication, and
ordered him to refund to CCA all monies which had been paid to him in connection
with the adjudication. For the reasons that follow, this appeal should be dismissed also.
The late decision question
[6] I will discuss first the question of whether the decision was ineffective for its lateness.
The facts
[7] In February 2018, CCA and Galaxy entered into a contract under which CCA was to
perform civil works at a site in Coomera.
[8] On 1 July 2019, CCA served a payment claim for a progress payment of
$1,430,070.69. On 15 July 2019, Galaxy served a payment schedule, which
nominated a scheduled amount of negative $53,278.
[9] On 13 August 2019, CCA filed an adjudication application in respect of its payment
claim. Galaxy requested and was granted an extension of time to deliver its
adjudication response, which it filed on 18 September 2019. The adjudicator then
requested additional submissions from the parties, which were duly provided.
[10] Three requests for an extension of time were made by the adjudicator for the delivery
of his decision, and agreed to by the parties. The date for the decision became
18 October, then 22 October and ultimately 24 October 2019.
[11] On 24 and 25 October 2019, the adjudicator emailed versions of his decision to
Adjudicate Today, the relevant registrar under the Act. On 25 October, the registrar
responded by identifying some “typos” in that document. An amended version was
sent by the adjudicator to the registrar later that day. On 28 October 2019, the
adjudicator was still finalising the terms of his decision, in email correspondence with
the registrar, as to which party should pay the adjudicator’s fees. On the same date,
the registrar wrote to the parties, saying that the adjudicator’s decision had been
received and that the adjudicator had given instructions not to release his decision to
the parties until his fees were paid.
[12] The ultimate decision of the adjudicator was delivered by him on 28 October 2019,
and on 29 October, that was provided to the parties and an adjudication certificate
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was issued. In that decision, the “Decision Date” was specified as 24 October 2019.
This was filed as a judgment in the Court on 30 October 2019, and enforcement
warrants were subsequently obtained. On 22 April 2020, after the primary judgment
was delivered, that money judgment and the enforcement warrants were set aside.
[13] In the proceeding before the primary judge, CCA admitted that the decision was
delivered to the parties on 29 October 2019, and that this was outside the time which
was required by the Act.
The Act
[14] The relevant provisions are within Chapter 3, Part 4. The provisions will be discussed
in their terms at the time which is relevant to this case. And the subsequent
amendments, if relevant, would not affect the reasons which follow.
[15] Section 79 provides for an application for adjudication. By s 79(2)(b), an
adjudication application must be made within a specified time limit. A copy must be
given to the respondent,2 and the registrar must, within four business days after
receipt of the application, refer the application to an adjudicator.
[16] By s 81, the adjudicator must, unless they have a reasonable excuse, accept or reject
the referral within four business days after it is made. If the adjudicator rejects the
referral, or does not accept it within the time required by s 81(1), the registrar must
refer the application to another adjudicator within four business days after becoming
aware of the refusal or failure.3 On accepting a referral of an adjudication application,
an adjudicator is taken to have been appointed to decide the application.4
[17] After being given notice of an adjudicator’s acceptance of an application, the
respondent may give the adjudicator a response to the application.5 The time within
which an adjudication response must be given is prescribed by s 83.
[18] Section 84(1) provides:
“(1) Subject to the time requirements under section 85, an
adjudicator must decide the following as quickly as possible—
(a) an adjudication application …”.
[19] Sections 85 and 86 are critical provisions in this case and it is necessary to set them
out in full:
“85 Time for deciding adjudication application
(1) Subject to section 86, an adjudicator must decide an
adjudication application no later than—
(a) for a standard payment claim—10 business days
after the response date; or
(b) for a complex payment claim—15 business days
after the response date.
2 s 79(3).
3 s 81(4).
4 s 81(7).
5 s 82(1).
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(2) The response date is—
(a) if the adjudicator is given an adjudication response
under section 83—the day on which the adjudicator
receives the response; or
(b) otherwise—the last day on which the respondent
could give the adjudicator an adjudication response
under section 83.
(3) An adjudicator must not decide an adjudication
application before the end of the period that the
respondent may give an adjudication response to the
adjudicator under section 83, unless—
(a) the adjudicator decides he or she does not have
jurisdiction to adjudicate the application; or
(b) the adjudicator decides the application is frivolous
or vexatious.
86 Extending time for deciding adjudication application
(1) The claimant and respondent for an adjudication
application may, before or after the end of the maximum
period for deciding the application under section 85(1),
agree in writing that the adjudicator has additional time
to decide the application.
(2) Despite section 85(1), an adjudicator may decide an
adjudication application within a longer period if—
(a) the claimant and respondent have informed the
adjudicator that they have agreed under
subsection (1) that the adjudicator has additional
time to decide the application; or
(b) the application relates to a complex payment claim
and, in the opinion of the adjudicator, the claimant
and respondent have failed to reach an agreement
mentioned in subsection (1).
(3) The longer period is—
(a) if subsection (2)(a) applies—the additional time
agreed to by the claimant and respondent under
subsection (1); or
(b) if subsection (2)(b) applies—5 business days after
the time the adjudicator would otherwise have to
decide the application under section 85(1).”
[20] Section 88(5) prescribes the content of an adjudicator’s decision. It must be in writing
and include the reasons for the decision (unless the parties have asked the adjudicator
not to include the reasons). By s 88(6), the adjudicator must give a copy of the
decision (together with the details of the fees and expenses to be paid to the
adjudicator) to the registrar at the same time at which the adjudicator gives a copy of
the decision to the parties.
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[21] Section 89 provides for a slip rule. It enables an adjudicator to correct a clerical
mistake, an error from an accidental slip or omission, a material miscalculation of
figures or a material mistake in the description of a person, thing or matter mentioned
in the decision, or a defect of form. The adjudicator may do so on the adjudicator’s
own initiative, on the application of one of the parties, or if requested to do so by the
registrar.6
[22] By s 90, if an adjudicator decides that a respondent is required to pay an adjudicated
amount, the respondent must pay the amount within the period as prescribed by that
provision. By s 91(1), as soon as practicable after being given a copy of an
adjudicator’s decision, but no later than five business days from then, the registrar
must give the claimant an adjudication certificate stating the matters there prescribed.
An adjudication certificate may be filed as a judgment for a debt, and may be
enforced, in a court of competent jurisdiction.7
[23] Another key provision is s 94, which it is necessary to set out in full:
“94 Claimant may make new application in certain circumstances
(1) Subsection (2) applies if an adjudicator, who accepts a
referral to decide an adjudication application (the original
application), does not decide the application within the
period required under section 85.
(2) The claimant may do either of the following within
5 business days after the period mentioned in subsection
(1)—
(a) request the registrar refer the original application to
another adjudicator; or
(b) make a new adjudication application (the new
application) under section 79.
(3) If the claimant requests the registrar refer the original
application to another adjudicator—
(a) the registrar must refer the application to another
adjudicator within 4 business days after the request
is made; and
(b) no fee is payable for referring the original
application to another adjudicator.
(4) Also, if another adjudicator accepts the referral, this
division applies for the original application with the
following changes—
(a) the claimant must give the adjudicator a copy of his
or her submissions included in the original
application within 5 business days after the
adjudicator accepts the referral;
(b) the respondent must give the adjudicator a copy of
his or her submissions included in an adjudication
6 s 88(2), (3).
7 s 93(1).
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response, if any, for the original application
within 5 business days after the adjudicator accepts
the referral;
(c) the response date for the application under
section 85(2) is the day—
(i) the adjudicator receives the copy of the
submission from the respondent; or
(ii) if the respondent does not give the
adjudicator the copy of the submission
within the period mentioned in paragraph
(b)—immediately after the end of the period;
(d) in deciding the adjudication application, the
adjudicator must not consider any submissions
other than—
(i) the submissions mentioned in paragraph (a)
or (b); or
(ii) further written submissions asked for by the
adjudicator under section 84(2)(b).
(5) This division applies to the new application in the same
way it applies to any other adjudication application made
under section 79.
(6) However, the claimant may, despite section 79(2)(b),
make the new application within 5 business days after the
claimant becomes entitled to act under subsection (2).”
[24] Section 97 provides for the withdrawal of an adjudication application. It provides:
“97 Withdrawing from adjudication
(1) An adjudication application—
(a) is withdrawn if the claimant has given a written
notice of discontinuation to the adjudicator and
respondent; or
(b) is taken to have been withdrawn if the respondent
has, before an adjudicator has decided the
application, paid the claimant the amount stated in
the payment claim the subject of the adjudication
application.
Note—
Despite the withdrawal of an adjudication application an
adjudicator is still entitled to be paid fees for considering
the application, see section 95.
(2) If subsection (1)(b) applies, the claimant must as soon as
practicable inform the adjudicator that the adjudication
application has been withdrawn because of payment.”
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The reasoning of the primary judge
[25] Her Honour considered it to be important that the Act used “mandatory or imperative
language in s 85(1)”.8 She considered that “[t]he draftsman was using the [mandatory]
language with particularity and precision: mandatory language is used to impose time
limits, and permissory language is used where the subject of the provision does in
substance have a choice or election as to how, or whether, to exercise rights.”9 Her
Honour instanced s 86 as “an indication that the time limits are very important,”10
and considered that s 94(2) also supported Galaxy’s argument. Section 94(2), she
said, did not “contemplate the parties waiting a short time; in effect giving the
adjudicator a period of grace, to see whether the adjudicator nearly complies with the
time limited by statute for deciding.”11 Instead, s 94(2) contemplated “that a claimant
might immediately exercise its right to start a new adjudication which would be
inconsistent with the original application remaining on foot for some period of grace
after the date for delivery of [the] decision has passed.”12 She added that
“[i]nterestingly, s 94(2) and (3) do not require notice to the original adjudicator that
a new reference has been initiated.”13
[26] Her Honour considered the judgment of the Victorian Court of Appeal in Ian Street
Developer Pty Ltd v Arrow International Pty Ltd & Anor (“Ian Street”).14 The
question in that case was whether, under the Building and Construction Industry
Security of Payment Act 2002 (Vic) (“the Victorian statute”), an adjudicator’s non-
compliance with the time limit within which an adjudication had to be completed had
the effect that the adjudication decision was void. As I will discuss, the Victorian
statute is in materially different terms, and certain provisions of that Act, which are
not replicated in the (Queensland) Act, were critical to that Court’s conclusion that
the adjudicator’s decision was not void. Her Honour disagreed with much of the
reasoning of Maxwell P, who gave the principal judgment.
[27] Her Honour also considered the judgments of the Supreme Court of New South Wales
in MPM Constructions Pty Ltd v Trepcha Constructions Pty Ltd,15 Cranbrook
School v JA Bradshaw Civil Contracting,16 and Mt Lewis Estate Pty Ltd v Metricon
Homes Pty Ltd,17and disagreed with them for the same reasons.
The proper interpretation of the Act
[28] As I have said, the key provisions are s 85, s 86 and s 94. They provide a coherent
scheme by which the time limits, on an adjudicator’s power to decide an application,
are defined.
[29] The starting point is s 85(1), by which an adjudicator must decide an adjudication
application within a certain number of days after the response date.18 Section 84(1)
8 Primary judgment [22].
9 Ibid.
10 Primary judgment [23].
11 Primary judgment [24].
12 Ibid.
13 Ibid.
14 [2018] VSCA 294.
15 [2004] NSWSC 103.
16 [2013] NSWSC 430.
17 [2017] NSWSC 1121.
18 The response date being defined by s 85(2).
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does provide that an adjudicator must decide an adjudication application as quickly
as possible, but it imposes that obligation “subject to the time requirements under
section 85”. The Act expresses no consequence for an adjudicator not deciding an
application as quickly as possible, whereas there are provisions which detail what
might happen if the application is not decided within the relevant period which is
specified in s 85(1).
[30] The requirements of s 85(1) are expressly subject to s 86. That provision is expressed
in permissive terms. By s 86(2), it is provided that despite s 85(1), an adjudicator
may decide an application within a “longer period” in certain circumstances. The
first of those circumstances is defined in s 86(2)(a), which is that the parties have
informed the adjudicator that they have agreed, under s 86(1), that the adjudicator
has additional time to decide the application. The parties may agree that the
adjudicator will have that additional time, by a written agreement made either before
or after the end of the maximum period for deciding the application under s 85(1).
[31] The other circumstance is that prescribed by s 86(2)(b). It is where the application
relates to a complex payment claim and, in the opinion of the adjudicator, the parties
have failed to reach an agreement under sub-section (1). In a case under sub-
section (2)(b), the “longer period”, within which an adjudicator may decide the
application, is five business days after the time the adjudicator would otherwise have
to decide the application under s 85(1).
[32] The text of s 86 strongly indicates that, except in circumstances within either part of
sub-section (2), an adjudicator may not decide an adjudication application beyond the
maximum period for doing so under s 85(1). In a case which engages s 86(2), the
time limit under s 85(1) is varied.
[33] By s 94(1), it is provided that s 94(2) applies if an adjudicator does not decide the
application “within the period required under section 85”. However this must be
understood as the period required under s 85, except as that period is extended by the
operation of s 86. Were it otherwise, s 94 would lead to some outcomes which could
not have been intended. To take the case of an agreement between the parties under
s 86(1), it would be curious if, having made an agreement by which the adjudicator
was given additional time to decide the application, the claimant might still, within
five business days after the s 85(1) date, request a reference to another adjudicator or
make a new adjudication application.
[34] On one view, in a case in which a “longer period” for the decision has resulted from
the operation of s 86, it might be said that, in the terms of s 94(1), there is no longer
a “period required under section 85”. If so, however, that would significantly affect
a claimant’s position, in many cases, by denying the benefit of s 94 in a way which
could not have been intended.
[35] Section 94(1) must be construed as applying where the application is not decided
within the period required under s 85, or where the period is varied by s 86, within
that longer period. Section 94(2) enables a claimant to request another adjudicator,
or to make a new adjudication application, within five business days after the period
required under s 85, or where under s 86, within that longer period.
[36] Where a claimant acts under s 94(2), its action does not displace the power of the
original adjudicator. Instead, a claimant acts under s 94(2) only after that power is
spent. As the primary judge observed, s 94(2) and (3) do not require notice to the
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original adjudicator that a new reference has been initiated. The text of s 94 is therefore
another strong indication of the limit of an adjudicator’s power to decide the application.
[37] The issue is one of the limits of an adjudicator’s power, or jurisdiction. Is an
adjudicator bound by the Act to decide the application within the required time,
although still empowered by the Act to decide the application outside that time? Or
is the adjudicator’s jurisdiction defined by the relevant time limit, in that the
adjudicator’s powers cease once the time limit has passed? The resolution of such
a question was described in the joint judgment in Project Blue Sky Inc v Australian
Broadcasting Authority19 as follows:
“An act done in breach of a condition regulating the exercise of a
statutory power is not necessarily invalid and of no effect. Whether it
is depends upon whether there can be discerned a legislative purpose
to invalidate any act that fails to comply with the condition. The
existence of the purpose is ascertained by reference to the language of
the statute, its subject matter and objects, and the consequences for the
parties of holding void every act done in breach of the condition.
Unfortunately, a finding of purpose or no purpose in this context often
reflects a contestable judgment …. There is no decisive rule that can
be applied; there is not even a ranking of relevant factors or categories
to give guidance on the issue.”
(Footnotes omitted.)
[38] This issue of construction, of course, arises because the Act does not answer the
question by a specific provision. It does not expressly provide that a decision which
is given beyond the time limit will be of no legal effect. But as noted already, there
are provisions which provide strong indications of the answer. The text of s 86
provides for the circumstances in which an adjudicator may decide an adjudication
application within a longer period. The parties may agree that the adjudicator has
additional time to decide the application. This is a strong indication that absent such
an agreement (where the circumstances are not within s 86(2)(b)), the adjudicator
would not have additional time to decide the application. Section 86 operates by
conferring a power on the adjudicator which would not otherwise exist, namely the
power to decide the application beyond the time limit prescribed by s 85(1).
[39] Section 97 defines the circumstances in which an adjudication application is
withdrawn, or is taken to have been withdrawn. It is withdrawn by the claimant only
if the claimant has given a written notice of discontinuation to the adjudicator and the
respondent. Significantly, s 94(1) makes no reference to the withdrawal of an application.
It does not require an application to be withdrawn when the claimant is electing to
make a new application under s 94(2)(b). This is because, where s 94(2) is engaged,
there is no existing application which the adjudicator is then empowered to decide.
[40] It is then necessary to consider the judgments on similar legislation in Victoria and
New South Wales, upon which the submissions for CCA heavily rely. The Victorian
statute, as considered in Ian Street, is in many respects in substantially identical terms
to the (Queensland) Act. It is in mandatory terms specifying the time within which
an adjudicator should determine an application. By its s 22(4), an adjudicator is to
determine an adjudication application as expeditiously as possible and in any case
19 (1998) 194 CLR 355 at 388-9 [91].
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within a certain number of business days from the effective acceptance by the
adjudicator of the application, or within any further time, not exceeding 15 business
days after then, to which the claimant agrees. In that last respect, however, s 22(4A)
provides that the claimant must not unreasonably withhold their agreement.
[41] Section 23(2) and (2A) of the Victorian statute prescribe the considerations which an
adjudicator must and must not take into account in determining an application. An
important provision is s 23(2B) which provides as follows:
“(2B) An adjudicator’s determination is void—
(a) to the extent that it has been made in contravention of
subsection (2);
(b) if it takes into account any amount or matter referred to
in subsection (2A), to the extent that the determination is
based on that amount or matter.”
[42] Section 28(2) of the Victorian statute is engaged where the adjudicator fails to
determine the application within the time allowed by s 22(4). In that circumstance:
“(2) … the claimant—
(a) may withdraw the application, by notice in writing served
on the adjudicator or the authorised nominating authority
to whom the application was made; and
(b) may make a new adjudication application under section 18.”
[43] Maxwell P, who gave the principal judgment in Ian Street, noted that s 22(4)
contained “words of obligation” in requiring an adjudicator to determine an
application within a certain time.20 But in his view, there was no indication in the
statute that Parliament intended non-compliance with the time limit to render the
adjudicator’s decision invalid, and all of the indications were to the contrary.21 The
first of those indications was in s 23(2B), which, he said, should be treated as “an
exhaustive statement of the circumstances in which non-compliance by the
adjudicator with requirements governing the adjudication task will result in
invalidity”.22 The second was that, by s 28(2)(a), “the legislature has specifically
addressed the consequences of the adjudicator’s non-compliance with the adjudication
time limit”, and that “[f]ar from providing that non-compliance brings the
adjudicator’s jurisdiction to an end, or renders any subsequent decision invalid,
s 28(2)(a) permits – but does not require – the claimant to withdraw the
application.”23 Maxwell P said that “the necessary corollary [was] that the claimant
may decide not to withdraw but instead choose to wait for the adjudicator’s decision,
notwithstanding the expiry of the time limit.”24
[44] As should appear, those provisions have no equivalents in the (Queensland) Act. As
I have discussed, s 94 of the Act makes no provision for the withdrawal of an
adjudication application where the claimant elects to make a new application. And
the Victorian statute contains no equivalent of s 86 of the Act.
20 [2018] VSCA 294 at [66]-[67].
21 Ibid.
22 [2018] VSCA 294 at [69].
23 [2018] VSCA 294 at [70].
24 See also Ko v Hall & Ors [2020] VSCA 224 at [88]-[91] per McLeish JA.
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[45] Maxwell P concluded that those provisions would be a sufficient basis to uphold the
conclusion of the trial judge, that an adjudication decision which was made beyond
the required time was not void. But he added that it was appropriate to consider the
context of the legislative scheme, as one “avowedly established for the benefit of
claimants.”25 In his view, if the expiry of the time limit terminated the adjudicator’s
jurisdiction, the purpose of the statute, namely to ensure that a person entitled to
a progress payment is able to recover it, would be frustrated.26 In that respect,
Maxwell P agreed with views expressed by McDougall J in several judgments,
including this passage in Cranbrook School v JA Bradshaw Civil Contracting:27
“To my mind, it would be quite extraordinary if the legislature
intended that a builder or subcontractor who had got through the
various hurdles that the [NSW] Act imposes, in the path of obtaining
a successful determination, up until the point of receipt of the
adjudicator’s reasons, should be disqualified from the benefit of
a determination in its favour simply because the adjudicator did not
comply with the statutory time limit.”
Maxwell P was unpersuaded by a submission that “considerations of commercial
certainty supported the view that Parliament did intend invalidity to follow from
a breach of the time limit”.28
[46] However, in my respectful opinion, the desirability of certainty in a commercial
context has force. The Act, like the Victorian statute, has an evident purpose of
facilitating the recovery of progress payments. However, that purpose would not be
frustrated by the construction of the Act which I accept. On that construction, there
is a stronger incentive for the adjudicator to decide an application as the Act
specifically requires. In cases where the adjudicator fails to decide the application
within the required time, the claimant has other ways of obtaining an adjudication
decision without having to start again by a new payment claim.
[47] For these reasons, the primary judge was correct to hold that the adjudicator’s
decision, which was admitted by CCA to have been given out of time, was of no effect.
[48] However another point, which arose in the course of argument, should be discussed.
The point involves a question of whether, on the facts of this case, the decision was
given within time when it was given on 29 October 2019. This involves a particular
interpretation of s 86, which was raised with counsel for CCA and then adopted by
them, but which, I have concluded, should not be accepted. In this case, under s 86(1)
the parties agreed that the adjudicator should have additional time to decide the
application. As I have discussed, ultimately that agreed time became no later than
24 October 2019. In those circumstances, was there room for the operation of
s 86(2)(b), so that the adjudicator had power to decide the application up to five
business days after 24 October 2019?29
[49] I have concluded that this result would be inconsistent with the proper interpretation
of s 86. Paragraphs (a) and (b) of s 86(2) are alternatives. The circumstances which
would engage (b) could not exist where (a) has been engaged. Where the parties have
25 [2018] VSCA 294 at [72], [73].
26 [2018] VSCA 294 at [73], [74].
27 [2013] NSWSC 430 at [63].
28 [2018] VSCA 294 at [77], [78].
29 This being a “complex payment claim”, as defined in s 64 of the Act.
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14
agreed under s 86(1), thereby engaging (a) of sub-section (2), the case could not be
one where, in the opinion of the adjudicator, the parties had “failed to reach an
agreement mentioned in subsection (1)”. And in sub-section (3)(b), the longer period
is calculated from the date when “the adjudicator would otherwise have to decide the
application under section 85(1)”. It is not calculated from a date which results from
s 86(2)(a).
The licence issue
[50] Section 42 of the QBCC Act relevantly provides:
“42 Unlawful carrying out of building work
(1) Unless exempt under schedule 1A, a person must not
carry out, or undertake to carry out, building work unless
the person holds a contractor’s licence of the appropriate
class under this Act.
…
(3) Subject to subsection (4), a person who carries out
building work in contravention of this section is not entitled
to any monetary or other consideration for doing so.
…”
[51] The term “building work” is defined in Schedule 2 to the QBCC Act to include the
erection or construction of a “building”, save for work of a kind excluded by
regulation from the ambit of that definition. The word “building” is there defined to
mean something which “includes any fixed structure”. As the primary judge noted,
examples which the QBCC Act provides of fixed structures demonstrate that the word
“building” has a wider meaning than what it might have in common parlance.30
[52] CCA held only one relevant licence, namely in the category “Builder restricted to
structural landscaping licence”.
[53] Only a small part of the works which CCA were contracted to perform were
contended to be outside the terms of CCA’s licence. The primary judge described
them as “the bus stop works”. These were works to be performed as part of the
widening of Foxwell Road, within the development. The bus stop works included the
removal of a metal garden-style seat, fixed to a concrete footpath next to a pole with
a bus stop sign on it, and the re-fixing of that seat to new concrete paving. On the
other side of Foxwell Road, a prefabricated metal shelter was to be removed and
relocated to a new concrete footpath, and next to it, was to be affixed a piece of metal
to be used as a bike rack.
[54] It was common ground that if any of the work which CCA contracted to perform was
outside the scope of its licence, it followed that CCA had carried out building work
in contravention of s 42(1) of the QBCC Act, and that subject to s 42(4), CCA was
not entitled to any monetary or other consideration for doing so. If it had no
contractual right to be paid for the performance of the work which it had promised to
undertake, then the adjudicator had no jurisdiction to decide that CCA was entitled to
a progress payment under the Act.31
30 Primary judgment [61].
31 Sutton v Zullo Enterprises Pty Ltd [2000] 2 Qd R 196; Dart Holdings Pty Ltd v Total Concept Group
Pty Ltd & Ors [2012] QSC 158.
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15
[55] The primary judge concluded that the prefabricated metal shelter, on the southern side
of Foxwell Road, fell within the scope of CCA’s licence. That left for consideration
the question of whether the installation of the bike rack, adjacent to that structure, and
the seat to be affixed to the new concrete paving on the footpath on the opposite side
of Foxwell Road, were things which could be done under CCA’s licence.32
[56] Her Honour considered, but rejected, the possibility that these items were part of work
which were exempted by Item 13 of Schedule 1 to the QBCC Regulation, namely
“work on busways and tunnels”. There is no challenge to her Honour’s conclusion
that this was not a busway.33
[57] Her Honour then turned to the question of whether these works were within the
exclusion at Item 14 of Schedule 1 to the QBCC Regulation. Item 14 is relevantly in
these terms:
“14 Work on roads and tunnels
(1) Construction, maintenance or repair of a road or a tunnel
for a road.
(2) In this section—
…
road–
(a) means an area of land—
(i) whether surveyed or unsurveyed, dedicated,
notified or declared to be a road for public
use; or
(ii) whether surveyed or unsurveyed, taken
under an Act, for the purpose of a road for
public use; or
(iii) developed, or to be developed, for the public
use of driving or riding of motor vehicles; and
(b) includes—
(i) a street, esplanade, highway, pathway,
thoroughfare, toll road, track or stock route;
and
(ii) a causeway or culvert in, on, or under a road
that is associated with the road; and
(iii) a structure in, on, or under a road that is
associated with the road; …”
[58] Her Honour extensively considered whether, in the terms of Item 14(2)(a)(i), Foxwell
Road was a “dedicated … road for public use”, and decided that it was.34
32 Primary judgment [75].
33 Primary judgment [78].
34 Primary judgment [105].
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16
[59] The question then was whether, in the terms of Item 14(2)(b)(iii), the bus stop works
were, in each case, “a structure … on … a road that is associated with the road”. She
held that they were not, because they were not structures on a road, but were instead
structures on a footpath. Her Honour reasoned as follows:
“[106] … While someone on a footpath may in colloquial parlance be
said to be in or on a road, I hesitate to embrace the notion that
the words in item 14(2)(b)(iii) were used in this colloquial and
slightly non-literal sense. In any case, I think the matter is put
beyond doubt because the very next item in Schedule 1 to the
QBCC Regulations specifically deals with footpaths:
‘15 Work on bikeways and footpaths
(1) Construction, maintenance or repair of a bikeway
or footpath or a tunnel for a bikeway or footpath.
(2) In this section—
…
footpath–
(a) means a path that has as 1 of its main
purposes the public use of the path by
pedestrian traffic; but
(b) does not include a path contained within
private property.’
[107] It seems to me that where Schedule 1 has made specific
provision for work on roads at item 14, and work on footpaths
at item 15, the word road, where used in item 14, should not be
interpreted as including footpath. Unfortunately for the first
respondent, while structures in, on or under a road are excluded
from the definition of building works, there is no similar
provision in relation to structures in, on or under footpaths.”
[60] I am unable to agree with that reasoning. In my view, it is far from clear that the
installation of these two items was not part of the construction of a footpath. True it
is that Item 15 contains no provision in terms corresponding with Item 14(2)(b)(iii).
But that is not fatal to the alternative construction of Item 15, which I prefer. In any
case, these items were, in my view, structures on a road, and which were associated
with a road.
[61] In Item 14, the primary meaning of “road” is expressed in paragraph (a). It is “an
area of land”, including an area of land dedicated, notified or declared to be a road
for public use. Although her Honour did not make a specific finding on the question,
the arguments in this Court appear to accept that these items were on land which was
dedicated to be a road for public use. They were not on private land.
[62] In other contexts, there could be a real and important distinction between a roadway
and its adjoining footpath. In this context, having regard to the definition of “road”,
the footpath in question was part of the area of land which was the road.
Consequently, these things were within the description in Item 14(2)(b)(iii). And
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17
there is no reason to exclude them from that category because work on the footpaths
is also the subject of Item 15. Whereas a road, as defined here, would include the adjoining
footpath, not every footpath would be within a road. Examples of pedestrian
laneways come to mind.
The appeal by Mr Jones
[63] In the primary judgment, it was ordered that Mr Jones was not entitled to be paid any
fees or expenses for or in relation to the adjudication. It was further ordered that he
refund to CCA all monies paid to him by CCA in connection with the adjudication.
By his appeal, he seeks to have those orders set aside.
[64] It is necessary to discuss his participation in this proceeding. The originating
application, by which the proceeding was commenced, named Mr Jones as the second
respondent. That application sought, amongst other relief, a declaration that he was
not entitled to be paid for the adjudication and an order that he refund all fees and
expenses which CCA had paid to him. Galaxy’s case was not pleaded, and there was
no indication, from the application or otherwise, of an allegation of the absence of
good faith on the part of the adjudicator.
[65] The registrar then wrote to Galaxy, advising that because no order for costs was being
sought against Mr Jones, he did not intend to take part in the proceeding, apart from
formally appearing. Thereafter, he took no active role in the proceeding before these
orders were made.
[66] Subsequently, and prior to the hearing, Galaxy filed written submissions which
included the following:
“The Adjudicator knew he had not decided the application, as he and
his agent continued with that task over the next four days. On
28 October 2019 they represented (incorrectly) to the parties that the
decision had been made on 24 October 2019. The Adjudicator’s
repeated requests for extensions demonstrate he was acutely aware of
his obligation to make his decision within the required time.”
[67] The submissions made no specific reference to s 95(8) of the Act, which states:
“Also, if a court finds that the adjudicator’s decision is void and
unenforceable, the adjudicator is still entitled to be paid any fees or
expenses for adjudicating the application if the adjudicator acted in
good faith in adjudicating the application.”
[68] In this Court, counsel for Galaxy said that the contention for his client had not been
that there had been an absence of good faith, in the terms of s 95(8), but that this was
a case where the adjudicator should not have his fees or expenses, because of s 95(6)
which provides:
“An adjudicator is not entitled to be paid any fees for adjudicating an
adjudication application if the adjudicator fails to make a decision on
the application.”
Section 95(7) provides for circumstances in which an adjudicator will not have failed
to make a decision. But they do not include a case of the present kind, namely where
the adjudicator has failed to make a decision because a purported decision is void for
having been given beyond the required time.
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18
[69] Mr Jones says that he received those written submissions from Galaxy, but did not
read them beyond the first or second pages, and did not read that part which I have
set out.
[70] Again prior to the hearing, CCA filed written submissions, in which this was said:
“[CCA] does not contend a different application of s 95(6) but submits
that the Adjudicator has not failed to make a decision. It is accepted
that the Decision was delivered to the parties late, but for the reasons
given above, this was not fatal.”
[71] The relevant reasoning of her Honour was in this paragraph of the primary judgment:
“[57] Having regard to s 95(6), I do not think the adjudicator is
entitled to be paid any fees. I see the provision at s 95(8)
(above). I accept that it applies here because the circumstances
are within the introductory words – ie, I have found that the
adjudicator’s decision is void. However, I must say that the
language of the remainder of that subsection is more suited to
a situation where an adjudicator delivers a decision in time but
the decision is void because he or she has made some other
jurisdictional error, for example, taking into account an
irrelevant consideration – see the repeated phrase, “adjudicating
the application”. However, in my view here the adjudicator
cannot be said to have acted “in good faith”, as required by the
subsection, in relation to the very matter which rendered the
purported decision void. The adjudicator was well aware of the
time limit for his determining the adjudication. I accept the
applicant’s submission that on 28 November 2019 the second
respondent represented that he had made a decision within time,
namely 24 October 2019, when that was not in fact the case.”
[72] The primary judge thereby applied s 95(8). Her Honour found that the adjudicator’s
decision was void, and that the adjudicator could not be said to have acted in good
faith, because he was well aware of the time limit for his determining the adjudication.
And, her Honour added, the adjudicator had made a misrepresentation, by falsely
representing that he had decided the matter by 24 October 2019, when that was not
the fact.
[73] In my opinion, her Honour’s findings of bad faith and misrepresentation ought not to
have been made without providing the adjudicator with an opportunity to be heard on
those subjects.
[74] The adjudicator must have understood that his decision was being given beyond the
required date, 24 October 2019. But it is another thing to find that he understood that
in consequence, his decision was void. It is of some concern that his decision
represented, on its face, that it was made on 24 October 2019. However it was not
clear that he had attempted to mislead the parties that he had made a decision within
time. The necessary implication from her Honour’s judgment was that this was
a misrepresentation which he knew was false. Moreover, that was not a finding which
the submissions for Galaxy had sought. It ought to have been clear to the primary
judge that such a finding should not be made without hearing from him.
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19
[75] Similarly, Galaxy’s submission did not seek a finding of the absence of good faith, in
the terms of s 95(8). Its case, as CCA understood it, was that the adjudicator was
disentitled to fees and expenses because he had failed to make a decision which had
any effect: s 95(6).
[76] Although the judge was wrong to make the findings which she did in paragraph [57]
of the primary judgment, nevertheless this was a case where Mr Jones was not entitled
to be paid any fees or expenses, because he failed to make a decision on the
application. It is no answer to say that he made a decision, although one which was
of no effect because it was outside the required time and therefore beyond his
jurisdiction. Mr Jones may have thought that his decision, although late, would be an
effective decision. However, on the correct interpretation of s 95(6), that does not
matter. Nor does it matter that it was open to the parties, after the required date for
the decision, to agree to an extension of time. Absent such an agreement, the
purported decision was void and was not a decision for the purposes of s 95(6).
[77] Having read the primary judgment, Mr Jones sought the consent of Galaxy and CCA
to have the orders against him set aside. That consent was not forthcoming. Mr Jones
then sought an urgent hearing before the primary judge, and filed an application to
have those orders set aside. His application was listed for hearing on 13 May 2020.
He filed his notice of appeal on 24 April 2020, and on 27 April 2020, CCA filed its
notice of appeal. Nevertheless, he maintained his application before the primary
judge. On the eve of the scheduled hearing of that application, Galaxy filed written
submissions which stated that no allegation of fraud was made by it, and nor, it was
suggested, was any finding of fraud made by the Court. Mr Jones then discontinued
his application to the primary judge.
[78] In this Court, Mr Jones made submissions on the principal jurisdictional question,
which were supportive of CCA’s argument. Those submissions need not be
discussed. There are several complaints made on Mr Jones’s behalf, as to an absence
of procedural fairness or a basis for the findings which her Honour made against him.
What I have said already should explain why his complaints in that respect have force.
[79] However, he has now had a full hearing in this Court, and it is clear that the orders
which were made against him must stand, by the operation of s 95(6). His appeal
should be dismissed.
Conclusion and orders
[80] In appeal number 4543 of 2020, I would order as follows:
1. Appeal dismissed.
2. The appellant to pay the first respondent’s costs of the appeal.
[81] In appeal number 4449 of 2020, I would order as follows:
1. Appeal dismissed.
2. The appellant to pay the first respondent’s costs of the appeal.
[82] JACKSON J: In my view, the principal appeals should be dismissed. Except in one
respect, I agree with McMurdo JA’s reasons. But, in any event, and because
I respectfully disagree with two conclusions reached in the learned primary judge’s
reasons, I add some observations of my own.
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[83] The first basis for the learned primary judge’s decision was that the adjudication
application was not decided within the time required by ss 85 and 86 of the Building
Industry Fairness (Security of Payments) Act 2017 (Qld) (“BIFA”), and the purported
decision made after that time was invalid and void. I agree with the reasons of the
learned primary judge and those of McMurdo JA with respect to this basis.
Accordingly, I need add only a few brief observations.
[84] In my view, the learned primary judge correctly posed the question for decision by
her as being whether because the adjudicator’s decision was delivered after the
maximum period by the BIFA for it to be made, it was void.35 In considering that
question, her Honour first set out the relevant statutory provisions,36 then carefully
analysed the text of the central time limiting provision, s 85(1),37 followed by the
immediate context of s 86, to which s 85 was subject, for extending that time in two
limited ways.38 Second, her Honour considered the context of s 94(2), that expressly
provided for the consequences of an adjudicator not deciding an adjudication
application within the period required under s 85 and the inconsistency of result that
would follow if an applicant had the rights not only to elect to refer the original
application to another adjudicator or to make a new adjudication application, but also
to wait to see whether the original adjudicator decided the original application out of
time.39 The learned primary judge then considered the further context of s 97 and
compared the operation of s 94 and s 97.40 Her Honour then turned from the specific
text and context to the purpose of the legislation.41 Then, her Honour considered the
case law dealing with interstate legislation, observing that it was sufficiently different
from the BIFA to make the reasoning and results of those cases distinguishable.42 In
particular, her Honour observed that the text of the Victorian Act did not compare
with s 94 of the BIFA.43
[85] Civil Contractors (Aust) Pty Ltd submitted that the learned primary judge erred in
failing to consider whether an adjudicator who purports to decide an adjudication
decision after the required time makes a jurisdictional error. In my view, if the
learned primary judge’s reasoning is accepted, there is jurisdictional error. If the
BIFA, properly construed, only authorises an adjudicator to decide an adjudication
application within the time required by ss 85 and 86, that requirement constitutes
a jurisdictional fact, the absence of which means a purported decision made later is
subject to jurisdictional error and is void.44 An adjudicator falls into jurisdictional
error “if it mistakenly asserts or denies the existence of jurisdiction or if it
misapprehends or disregards the nature or limits of its functions or powers in a case
where it correctly recognises that jurisdiction does exist”.45
35 Galaxy Developments Pty Ltd v Civil Contractors (Aust) Pty Ltd t/a CCA Winslow & Ors [2020]
QSC 51, (“Reasons”), [1] and [20].
36 Reasons, [9] – [18].
37 Reasons, [21] – [22].
38 Reasons, [23].
39 Reasons, [24](b).
40 Reasons, [27].
41 Reasons, [29] – [32].
42 Reasons, [35].
43 Reasons, [43].
44 Southern Han Breakfast Point Pty Ltd (in liq) v Lewence Construction Pty Ltd & Ors (2016) 260 CLR 340,
345 [1] – [2], 360 – 361 [1]; Minister for Immigration and Citizenship v SZMDS & Anor (2010)
240 CLR 611, 618 – 621 [16] – [24]; Kirk v Industrial Court of New South Wales & Anor (2010)
239 CLR 531, 569 – 574 [66] – [73].
45 Kirk v Industrial Court of New South Wales & Anor (2010) 239 CLR 531, 573 – 574 [72].
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[86] In my view, an important factor in the learned primary judge’s reasoning was that
s 94 of the BIFA expressly provides for the consequences of an adjudicator not
deciding an adjudication application within the time required under ss 85 and 86.
Section 94 does not have a direct comparator in the legislation of the other
jurisdictions. Section 94 replaced s 32(1)(b) and (2) of the repealed Building and
Construction Industry Payments Act 2004 (Qld). Under those provisions, where an
adjudicator did not decide an application within the time allowed by ss 25A or 25B
of the repealed Act, a claimant had the right to withdraw the application and make
a new adjudication application, but had no right to refer the existing adjudication
application to another adjudicator as is now provided by s 94(2)(a).
[87] As the learned primary judge reasoned, if an adjudicator’s power to decide an
adjudication application continues after not deciding an adjudication application
within the time required under ss 85 and 86, two unlikely consequences would follow.
One of them is that under s 94 the claimant may still elect to refer the adjudication
application to another adjudicator or make a new adjudication application. If, as in
this case, the adjudication decision were made within a few of days of expiry of the
time required by ss 85 and 86, the claimant would then be able to decide whether or
not it was satisfied with the late decision and, if not, still elect to refer the adjudication
application to a new adjudicator or make a new adjudication application. In my view,
that construction of the Act is one that should not be accepted lightly as being the
intention of the legislature.
[88] The other is that although the tightly limited time for deciding an adjudication
application has expired, there would be no other limit in time that would apply to
deciding the adjudication application. Civil Contractors submitted that an indirect
limit would remain in the requirement that the decision must be made in good faith.
In my view, that is not a time limitation.
[89] As both the learned primary judge and McMurdo JA reason, Ian Street Developer Pty
Ltd v Arrow International Pty Ltd & Anor46 is clearly distinguishable. In my view,
also, it is not persuasively reasoned. As McMurdo JA’s reasons show, it is
distinguishable because the BIFA contains no equivalent of s 23(2B) of the Victorian
Building and Construction Industry Security of Payment Act 2002 (Vic) and because
s 94 of the BIFA contains no equivalent of the power to withdraw an adjudication
application as provided for in s 28(2)(a) the Victorian Act.
[90] Once it is accepted that there are relevant differences between the BIFA and the
Victorian Act, Ian Street Developer is only of persuasive authority in accordance with
the persuasiveness of the reasoning. In my view, there are other reasons why it is not
persuasive. As McMurdo JA reasons, one of them is the importance of certainty in
this commercial context.
[91] Project Blue Sky Inc v Australian Broadcasting Authority47 is so often referred to that
it would be otiose to deal with it generally in these reasons. But it is particularly
relevant in the present case because it was concerned with whether breach of
a statutory requirement as to making a decision had the effect as a matter of
construction of invalidating a tribunal decision. The plurality said on that question:
“An act done in breach of a condition regulating the exercise of a
statutory power is not necessarily invalid and of no effect. Whether it
46 [2018] VSCA 294.
47 (1998) 194 CLR 355.
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is depends upon whether there can be discerned a legislative purpose
to invalidate any act that fails to comply with the condition. The
existence of the purpose is ascertained by reference to the language of
the statute, its subject matter and objects, and the consequences for the
parties of holding void every act done in breach of the condition.
Unfortunately, a finding of purpose or no purpose in this context often
reflects a contestable judgment. The cases show various factors that
have proved decisive in various contexts, but they do no more than
provide guidance in analogous circumstances. There is no decisive
rule that can be applied; there is not even a ranking of relevant factors
or categories to give guidance on the issue.”48
[92] Project Blue Sky is also authority rejecting the previous elusive technique in statutory
interpretation of characterising the contravened provision as directory or mandatory
and assessing whether there had been substantial compliance of a directory
provision.49 But even if regard is had to earlier cases where that technique was
followed, the applicable approach to questions of construction raised the same or
similar considerations. In Clayton v Heffron50 the plurality judgment stated:
“But commonly no express declaration is to be found in a statutory
power as to the effect on validity of departures from the procedure laid
down. The question is then determined by reference to the nature of
the power conferred, the consequences which flow from its exercise,
the character and purpose of the procedure prescribed.”51
[93] Because of those conclusions, it is unnecessary for me to consider whether the
alternative basis for the learned primary judge’s decision was correct, namely that
Civil Contractors was not entitled to any payment under the contract because it agreed
to carry out building work for which it did not hold a contractor’s licence of the
appropriate class.
[94] However, I agree with McMurdo JA that the relevant items of work in the present
case were excluded from the definition of “building work” as the erection of
a structure on a road. The contrary view, preferred by the learned primary judge, that
they were not because they were structures on a footpath, turns on whether the text in
item 15 of Schedule 1 to the QBCC Regulation “[c]construction … of a footpath…”
extracts work consisting of construction of structures within a road reserve from the
scope of the text of “construction… of a road” within item 14 of the schedule. That
view of the relevant provisions, might be said to give them a more clearly defined
structure of separate operation. So it is only with some diffidence that I differ from
the primary judge’s decision accepting it. But, on balance, I agree with McMurdo JA
that there is no reason or purpose of the relevant provisions that would be furthered
by adopting it.
[95] Last, as to Mr Jones’ appeal, I disagree with McMurdo JA’s reasons in one respect
although I agree with the orders his Honour proposes and the reasoning for those orders.
[96] I do not agree with McMurdo JA that it ought to have been clear to the learned primary
judge that no finding should have been made that Mr Jones falsely represented that
48 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355, 388-389 [91].
49 (1998) 194 CLR 355, 389-390, [92]-[93].
50 (1960) 105 CLR 214.
51 (1960) 105 CLR 214, 246.
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his decision was made on 24 October 2019 without hearing from him because that
was not a finding that Galaxy Developments had sought.
[97] Paragraph 68 of Galaxy Developments submissions to the learned primary judge
provided:
“The Adjudicator knew he had not decided the application, as he and
his agent continued with that task over the next four days. On
28 October 2019 they represented (incorrectly) to the parties that the
decision had been made on 24 October 2019. The Adjudicator’s
repeated requests for extensions demonstrate he was acutely aware of
his obligation to make his decision within the required time.”
[98] However, I agree that Galaxy Developments did not seek a finding of the absence of
good faith by Mr Jones. The relevance of that finding is that s 95(8) provides that:
“(8) Also, if a court finds that the adjudicator’s decision is void and
unenforceable, the adjudicator is still entitled to be paid any fees
or expenses for adjudicating the application if the adjudicator
acted in good faith in adjudicating the application.”
[99] Section 95(8) was raised in the proceeding by the learned primary judge.52 No notice
of its relevance or that a finding under it might be made on the question of repayment
of any fees or expenses paid to Mr Jones for adjudicating the application was given
to Mr Jones before that finding was made. In my view, because a finding of absence
of good faith is a serious adverse finding, notice that it was sought or might be made
should have been given to Mr Jones before it was made.53
[100] However, that conclusion does not matter, because I agree with McMurdo JA that
s 95(8) does not cover a case where an adjudicator fails to make a decision because
the time has expired under ss 85 and 86. That case is covered by s 95(6). Accordingly,
a finding of lack of good faith was not necessary for the order that was made by the
learned primary judge that Mr Jones repay the fees and expenses of adjudicating the
application.
52 Reasons, [57].
53 Sullivan and Others v Trilogy Funds Management Ltd (2017) 255 FCR 503, 505-507 [4], [13]-[14].
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Official source: https://www.sclqld.org.au/caselaw/QCA/2021/010