All Systems Pty Ltd v MAW Group (Aust) Pty Ltd & Anor [2019] QDC 211
DISTRICT COURT OF QUEENSLAND
CITATION: All Systems Pty Ltd v MAW Group (Aust) Pty Ltd & Anor
[2019] QDC 211
PARTIES: ALL SYSTEMS PTY LTD trading as WIDE BAY
ROOFING
ACN 123 530 343
(plaintiff)
v
MAW GROUP (AUST) PTY LTD trading as OASIS
CONSTRUCTION (AUST)
ACN 136 468 623
(first defendant)
BUNDABERG REGIONAL COUNCIL
ABN 72 427 835 198
(second defendant)
FILE NO/S: 7 of 2017 (Bundaberg Registry)
DIVISION: Civil
PROCEEDING: Application
ORIGINATING
COURT: District Court of Queensland
DELIVERED ON: 16 October 2019, ex tempore
DELIVERED AT: Brisbane
HEARING DATE: 16 October 2019
JUDGE: Porter QC DCJ
ORDER: 1. Paragraph 7 of the Amended Statement of Claim is
struck out.
2. The application for summary judgment insofar as it
relates to the part of the Claim in respect of the
unlicensed building work is dismissed.
3. The application for summary judgment on the
defence insofar as it relates to the part of the Claim
disputing the existence of the Subcontractors’
Charges is granted.
4. Proceeding M1465 of 2017 in the Brisbane Registry
of the Magistrates Court of Queensland be
transferred to the Bundaberg Registry of the District
Court of Queensland [the Transferred Proceeding].
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5. The Transferred Proceeding be consolidated with
this proceeding.
6. The remaining monies paid into Court by the second
defendant in the Transferred Proceedings in the
amount of $189,503.62 be paid out to the first
defendant.
7. The order in paragraph 6 hereof is stayed for 21 days.
8. The second defendant have leave to apply to vary or
be heard in respect of the order made in paragraph 5
hereof by notice to the Associate to His Honour Judge
Porter QC within 14 days of the date of this order in
respect to the order for payment out.
9. The first defendant pay the plaintiff’s costs of the
application to the extent it relates to the part of the
Claim in respect of the unlicensed building work on
the standard basis in any event.
10. The plaintiff pay the first defendant’s costs of the
application and of the proceedings to the extent they
relate to the part of the Claim disputing the existing
of the Subcontractors’ Charges on the standard basis
in any event.
11. To the extent that any costs of the application are not
dealt with by orders 9 and 10, those costs be costs in
the proceedings.
CATCHWORDS: PROCEDURE – CIVIL PROCEEDINGS IN STATE AND
TERRITORY COURTS – ENDING PROCEEDINGS
EARLY – SUMMARY DISPOSAL – SUMMARY
JUDGMENT FOR DEFENDANT OR RESPONDENT –
where the plaintiff was a subcontractor to the first defendant in
relation to a building project – where the plaintiff alleges it is
owed money by the first defendant for completing work under
the subcontract – where the plaintiff gave the first defendant
two notices of claim of charge under the Subcontractors’
Charges Act 1974 (Qld) – where the first defendant alleges that
the plaintiff is not licensed to perform the work under s 42 of
the Queensland Building and Construction Commission Act
1991 (Qld) – where the first defendant alleges the sums said to
be due are not secured by a charge under the Subcontractors’
Charges Act 1974 (Qld) – whether the first defendant should
be awarded summary judgment on the basis that the plaintiff’s
work was “structural” work within the meaning of s 42 of the
Queensland Building and Construction Commission Act 1991
(Qld) – whether the first defendant should be awarded
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summary judgment on the basis that the plaintiff’s statement
of claim was insufficient to enforce the purported charges
Subcontractors’ Charges Act 1974 (Qld), s 10, s 15
Queensland Building and Construction Commission Act 1991
(Qld), s 42
Uniform Civil Procedure Rules 1999 (Qld), r 293
Re Galaxy Investments Pty Ltd (in liq), unreported, White J,
SC No 152 of 1992, 17 August 1993
COUNSEL: B Codd for the applicant/first defendant
S Hogg for the respondent/plaintiff
No appearance from the second defendant
SOLICITORS: DWF (Australia) for the applicant/first defendant
Sajen Legal for the respondent/plaintiff
No appearance from the second defendant
BACKGROUND FACTS
[1] The commercial relationships between parties in this proceeding reflect common
relationships in modest size building projects. The second defendant, Bundaberg
Regional Council, was the principal in a contract with the first defendant, MAW
Group (Aust) Pty Ltd, for the construction of the Bundaberg Multiplex, a sporting
complex to be built in Bundaberg. The plaintiff was a subcontractor to the first
defendant in respect of that project. There are a number of other subcontractors. The
particular subcontract between the plaintiff and the first defendant was, in general
terms, for the carrying out of metal roofing and wall cladding works.
[2] The plaintiff pleads that the subcontract was varied in some respects in respect of
practical completion and similar matters, that the work was completed and the
plaintiff is still owed $189,602.13 under the subcontract.
[3] The plaintiff gave two notices of claim of charge under the Subcontractors’ Charges
Act 1974 (Qld). The first was dated 6 February 2017 and claimed an amount of
$140,811.65, for works carried out by the claimant pursuant to the subcontract
agreement in this case. It contained, in Annexure A, a series of invoices identified
and payments made which were said to and appeared to sustain the amounts said to
be owing.
[4] That was, it seems to me, a fairly modest attempt at complying with the obligations
under s. 10 of the Subcontractors’ Charges Act. In particular, s. 10(1)(a), requires
the notice to specify the amount and particulars of the claim certified as prescribed
by a qualified person. However, no point is taken about that.
[5] That notice of claim of charge was never the subject of a proceeding under s. 15 to
enforce the charge, a fact accepted by the plaintiff’s current representatives, and it is
not pressed as a valid charge. The statement of claim (not pleaded by current counsel)
pleads a charge on 1 February 2017 in quite different terms, but there is no suggestion
now that any such charge exists.
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[6] The plaintiff delivered a second notice of claim of charge to the first defendant in
respect of the subcontract on 17 March 2017. In that notice of claim of charge the
amount of $48,691.97 was claimed. That was a claim for work carried out by the
claimant pursuant to the subcontract, as set out in Annexure A to that notice. The
notice identified dates when the work was said to have been carried out. The period
identified was from 15 February 2016 to 28 February 2017, a period distinct from
that which was the subject of the 1 February 2017 notice of claim of charge. It
contained, again, a modest form of vouching for the purposes of s. 10, which
identified a series of invoices which, with GST, totalled the amount claimed.
[7] On 4 April 2017 the plaintiff commenced proceedings. Those proceedings are
important, because although they have been since amended, the form of the
proceeding as brought is relevant to identifying whether the proceeding has been
commenced to enforce the charge within the one-month period specified in section
15 of the Subcontractors’ Charges Act. The first defendant accepts that the plaintiff
commenced proceedings within one month of the 17 March 2017 notice of claim of
charge being given.
PLEADINGS
[8] The 4 April 2017 statement of claim, after reading some parts of the subcontract, said
this:
5. Pursuant to the Subcontract the plaintiff performed the Works from
May 2016 to February 2017.
6. Pursuant to the subcontract, the plaintiff issued monthly payment
claims and related invoices for the Works for the first defendant ...
totalling $662,818.95.
7. The first defendant assessed each payment claim and made
progressive payments to the plaintiff in partial reduction of the debt
owing to it for the Works so that at the date of this claim an amount
of 189,602.13 is currently due and owing to the plaintiff for the
Works.
8. In breach of the subcontract the first defendant has failed, refused or
neglected to pay the plaintiff the balance sum of $189,602.13 for the
Works.
[9] The pleading then went on to attempt to plead the claim of charge in respect of two
notices of claim of charge:
9. At all material times:
(a) the plaintiff was a “subcontractor” within the meaning of
the Subcontractors’ Charges Act 1974 as amended) (“Act”);
(b) the first defendant was a “contractor” within the meaning
of the Act;
(c) the second defendant was an “employer” within the
meaning of the Act;
(d) the Subcontract constituted a “contract” within the meaning
of the Act;
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(e) the Head Contract constituted a “contract” within the
meaning of the Act;
(f) the plaintiff was required to undertake “work” within the
meaning of the Act.
10. On or about 1 February 2017:
(a) the plaintiff gave notice of claim of charge to the second
defendant in the sum of $272,729.62 (including GST), being
the sum then owing by the first defendant to the plaintiff for
Works done on the Site (including retention), in respect of
money that was then or would become payable by the second
defendant to the first defendant pursuant to the Head
Contract;
(b) the plaintiff gave notice to the first defendant of such claim
of charge being given in relation to the monies owing;
(c) monies were then payable or, alternatively, thereafter
became payable, by the second defendant to the first
defendant pursuant to the Head Contract; and
(d) on 6 February 2017 the first defendant paid to the plaintiff
the sum of $95,684.44.
11. On or about 17 March 2017:
(a) the plaintiff gave notice of claim of charge to the second
defendant in the sum of $48,691.97 (including GST), being
the sum then owing by the first defendant to the plaintiff for
Works done on the Site (including retention), in respect of
money that was then or would become payable by the second
defendant to the first defendant pursuant to the Head
Contract;
(b) the plaintiff gave notice to the first defendant of such claim
of charge being given in relation to the monies owing;
(c) monies were then payable or, alternatively, thereafter
became payable, by the second defendant to the first
defendant pursuant to the Head Contract; and
(d) no sum has been paid to the plaintiff by the first defendant
or second defendant in whole or partial discharge on the
said charges.
12. In the premises, the plaintiff is entitled to a charge on all monies
including retention money payable or to become payable to the first
defendant by the second defendant under the Head Contract.
13. Pursuant to section 11 or, alternatively, section 12 of the Act, the
second defendant is liable to pay to the plaintiff the sum of
$189,602.13 including GST as per paragraph 7 hereof.
14. On 17 March 2017 pursuant to section 11(5) of the Subcontractors’
Charges Act 1974 (Qld) the Second Defendant paid into the Brisbane
Magistrates Court an amount of $233,530.50 in relation to Brisbane
Magistrates Court Registry Matter No. M1165/17.
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15. The plaintiff says that, as pleaded above, it is entitled to be paid the
sum of $189.602.13 from those monies paid into Court.
[10] As noted in [5] above, the notice of claim of charge pleaded in paragraph 10, at least
in those terms, does not exist.
[11] It is to be noted in respect of the 17 March 2017 charge (the March charge), the
statement of claim accurately pleads that the notice of claim of charge was in respect
of the amount of $48,691.97. It then goes on to allege that that sum was the sum then
owing by the first defendant to the plaintiff for works done on the site in respect of
money that was then or would become payable by the second defendant to the first
defendant pursuant to the head contract.
[12] I also note that paragraph 13 of the statement of claim articulates, consistent with
paragraph 7, that the amount owing under the subcontract at the date of the pleading
was $189,602.13. I also note an assertion that the plaintiff is entitled to be paid that
amount from money paid into court by the second defendant.
[13] It is not in dispute that the second defendant paid sums into court in response to
various notices of claim of charge given in respect of these works.
[14] It is convenient at this point to identify what has happened. Mr Weller, the managing
director of the first defendant, swears that various notices given in respect of the
project, which he identifies in his affidavit of 10 July 2019 at paragraph 44, are notices
of claim of charge by other subcontractors. I interpolate that such notices of claim of
charge should be served on him so it is reasonable to infer, so long as he has not
overlooked anything, that that is accurate.
[15] Mr Weller notes that the second defendant paid a total amount of $255,751.25 in two
instalments into court in Magistrates Court proceedings M1465 of 2017. He also
identifies that a total of $66,247.63 has been paid out of court. The balance therefore,
probably not coincidentally, is the amount claimed in both the original and amended
statement of claim, some $189,000.
[16] The statement of claim was amended in March 2019. I agree with the submission of
Mr Codd for the first defendant, which I do not think was cavilled with by Mr Hogg
for the plaintiff, that when assessing whether s. 15 of the Subcontractors’ Charges
Act has been complied with, the question has to be considered from the perspective
of the statement of claim as originally filed.
[17] The amended statement of claim, however, articulates quite clearly, in my view, that
a written subcontract was entered into on 22 June 2016. In paragraph 7, the statement
of claim alleges a variation to that contract, arising out of oral discussions relating to
the date for practical completion. Although on one view of it, that paragraph reads
also somewhat like a prevention principle pleading.
[18] Either way, the allegation of the variation in respect of practical completion in its
current form is, to use the old phrase, embarrassing. It is unclear whether the variation
happened before or after the parties entered a contract which has been pleaded as
being a contract in writing.
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[19] This has a tendency to prejudice or delay a fair trial because the first defendant is not
able to assess how the law of contract would apply to that allegation. Mr Hogg
accepted that defect in paragraph 7 and I ought therefore to order that paragraph 7 of
the amended statement of claim be struck out. This is not to say that the
circumstances that underpin paragraph 7 cannot be pleaded in some way which is
technically correct as a matter of law. However, in its current form it is not. The
amended statement of claim otherwise did not materially alter the issues that arose on
the original statement of claim.
[20] The defence raised a number of matters. Of particular relevance to this application
are the following.
[21] First, the first defendant alleged that there was no entitlement to payment under the
contract and no subcontractors’ charge could arise, because the subcontract was
unenforceable at the instance of the plaintiff because it was unlawful under s. 42(1)
of the Queensland Building and Construction Commission Act 1991 (Qld) (QBCC
Act). The substance of the submission was that the plaintiff held a low-rise builder’s
licence which authorised them, in broad terms, to work on low-rise buildings as long
as the work was not structural work.
[22] The first defendant alleged that part of the work contained in the scope of works was
structural work because, amongst other things, it involved external works which, at
the least, had the role in the building of resisting lateral forces such as wind and so
on, and that some of the work had load-bearing characteristics. That was, in short
compass, the complaint about the unenforceability of the contract at the instance of
the plaintiff.
[23] Second, the first defendant also alleged that the second charge was invalid because
the statement of claim, as originally pleaded, was not effective to be a proceeding to
enforce the charge, because, amongst other things, it failed to articulate the basis in
contract for the entitlement to the sum the subject of the charge. (I will ignore the
first charge in the pleading, for reasons I have given already.).
[24] The pleadings thereafter included the usual array of claims in contract and claims for
liquidated damages and so on that one sees when parties to a building contract are in
dispute. It is unnecessary for the purposes of this proceeding to say more about them.
They do not arise on this application.
[25] In those circumstances the first defendant brought an application for summary
judgment on the claim by the plaintiff against it and on its own counter-claim. It also
sought a declaration that the plaintiff was not entitled to either of the charges and
sought consequent relief in the circumstance where the plaintiff’s claim was
dismissed on a summary basis, or the subcontractors’ charges were invalid for
payment out of the money remaining in court, paid in by the second defendant.
[26] It sought in the alternative to strike out various paragraphs of the amended statement
of claim. I have dealt with paragraph 7 of the statement of claim at [18] above, and
the fate of the others will be a consequence of my ruling on the summary judgment
application.
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THE UNLICENSED WORK ISSUE
[27] The first point which arises on the application is whether I am able, to the standard
required under r. 293 of the Uniform Civil Procedure Rules 1999 (Qld), to conclude
that there is no real prospect of the plaintiff succeeding on the claim because, in
respect of the first matter, no claim can arise under the contract because the work
under the contract included work which was unlicensed work under s. 42 of the
QBCC Act.
[28] There was a significant amount of work done and material put before me about this
matter. It is unnecessary, in my respectful view, for me to give long reasons as to
why I intend to dismiss the application, to the extent it is brought in reliance on the
unlicensed work point.
[29] Suffice it to say, it seems to me to give rise to substantial factual questions as to
whether and to what extent the work under the subcontract was structural work within
the meaning of that word, where it appears in the particular licence the subject to the
proceedings. I will say this much: Mr Codd put before me a number of cases dealing
with the meaning of the word “structure” and “structural”. I did not find any of them
to be decisive in respect of this matter. It is my melancholy experience of this Act
and its extensive regulations and schedules, that is difficult to give the same word the
same meaning in different parts of the Act and the regulations without giving rise to
constructions which are plainly not intended by Parliament.
[30] The most important question for construing this particular licence and the word
“structural” where it appears, arises from the character of the licence itself. In those
circumstances it seemed to me to be quite open for there to be considerable debate
about what the word “structural” might mean. The question did not seem to me to be
able to be resolved by ordinary dictionary definitions of structural.
[31] Mr Hogg’s client relied on opinion evidence as to the meaning that can be given in
the building industry of the word “structural”. Mr Codd opposed me receiving that
evidence. Ultimately I was not persuaded that I was unable to consider that evidence,
because in construing the meaning of the word, especially where it is obvious its plain
ordinary dictionary meaning did not seem to be appropriate on any view, I may well
be assisted by understandings of the word in the building industry.
[32] Mr Codd submitted that it would not be appropriate to consider this evidence, given
that the statute is intended to be understood and to protect non-builders as well as
builders. The difficulty with that as a fundamental proposition of construction is that
the regulations that identify the licence categories are replete with words that ordinary
people would not understand and whose meaning can only be understood in the
context of the building industry.
[33] In any event, even if construing an ordinary meaning of the word “structural” could
be done without expert assistance, the question of whether particular work was or was
not structural would also, itself, need to be the subject of expert opinion.
[34] The first defendant has its own expert. In very broad terms, the difference between
the experts’ views is that “structural” can mean, according to the plaintiff’s expert,
parts of the building which bear gravity resisting load, while the first defendant’s
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expert says that the definition goes beyond that and extends to lateral loads like wind
loads. It may be that that is the better construction, but even if it is, the question then
comes down to whether the work the subject of the scope of works necessarily
involves structural work of that kind.
[35] Mr Codd sought to cross-examine the expert witness for the plaintiff. That is not an
appropriate course to take on a summary judgment application of this kind. There is
no absolute rule that leave will not be given to cross-examine on a summary judgment
application. However, ordinarily on summary judgment an applicant must take the
respondent’s case at its highest. No good reason was proffered as to why a different
approach should be taken in this case.
[36] Further, in my experience it is very difficult to be sure what the correct result is in
cases like this without a trial and the time for analysis and understanding of the
evidence that comes with a trial. Drawing on that experience, even if I thought Mr
Codd’s point seemed a strong one, which frankly at this stage it does, this would still
be the sort of case where the discretion to deal with the matter at a trial would call to
be exercised. I am not suggesting we are in that territory; however, I am just not
satisfied there is no real prospect of making out that this work was not outside the
scope of the licence.
[37] Having reached that conclusion, it is unnecessary to deal with the following issue, but
I should mention it. Some of the work said to be of a structural character was the
work installing top hats and girts. Top hats seem to be a kind of batten. The affidavit
evidence raised for the first time, as far as I can tell, the proposition that the work
involving 61 millimetre top hats and girts was agreed in the course of negotiating the
contract, to be omitted from the contract scope. It also looks like 40 millimetre top
hats were installed and, if that were the case, there seems to be an argument that they
are structural work in the same way as 61 millimetre top hats are said to be.
[38] I note this issue because it is relevant to the identification of the scope of the contract
and one cannot be sure as to how that would play out at trial. Mr Hogg has indicated
that the plaintiff intends to plead a rectification case in relation to the exclusion of the
61mm top hats. The point which Mr Hogg made, I should say pithily, in his
submissions was that the plaintiff’s expert’s evidence that none of the work in the
scope of works was structural was given based on the scope of works, without regard
to the elimination of the 61 millimetre top hats and girts and, if this is what has
happened, their replacement with 40 millimetre top hats. It is therefore evident that
the plaintiff has not yet brought forward its whole case on this issue.
[39] That seems to me to dispose of the application for summary judgment on the defence,
to the extent it relied on the unlicensed work point.
[40] I should say, however, that my preliminary view was that if Mr Codd’s client had
persuaded me that the work was structural work, the other propositions he advanced
in his submissions on law seemed to me to have merit. These propositions included
that the entire contract is unenforceable unless it is severable, and this contract was
not severable because it was an entire agreement.
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SUBCONTRACTORS’ CHARGE ISSUE
[41] Mr Codd’s client also seeks summary judgment on that part of the defence which
asserts that the sums said to be due under the contract are not secured by a charge
under the Subcontractors’ Charges Act and therefore money paid into court in respect
of that charge should be paid back to his client.
[42] That argument focused on the notion that the statement of claim as originally filed
failed to be, on its face, a proceeding to enforce the March 2017 charge. I agree with
that submission. The main reason is that the pleading nowhere asserts, at the date of
the pleading, that the items of work the subject of the March 2017 notice of charge
remained outstanding and that the sum of $48,691.97 claimed in respect of that work
remained due and owing.
[43] That seems to me to be fatal. Section 15 requires the subcontractor to commence a
proceeding to enforce the charge. The charge is that which arises from the notice of
claim of charge, which is made clear in s. 15(1), if nowhere else. The notice of claim
of charge was given in the context of s. 10. This section, as I have noted, requires a
notice of claim of charge to specify the amount and the particulars of the claim that
give rise to the asserted charge. Section 10 relevantly provides:
(7) To remove any doubt, it is declared that a subcontractor may make 2
or more claims in relation to money payable or to become payable to
the subcontractor for work done by the subcontractor under a
subcontract.
(8) However—
(a) each claim must be about a specific and distinguishable item
of the work done by the subcontractor under the
subcontract; and
(b) there must not be more than 1 claim about any 1 item.
[44] It can be seen from those provisions that a notice of claim of charge gives rise to a
charge for a specific sum in respect of identified work. If one is to commence a
proceeding to enforce that charge, it must be the charge as articulated and identified
in the notice of claim. Sections 10(7) and (8) require, as a matter of substance, the
pleading to identify that the sum claimed for the items identified remains due and
owing. That must be so because it is entirely possible that a notice of claim of charge
could be given for items X, Y and Z, and then a proceeding commenced a month later,
in which the claimant realises that item X was not truly owing and that he or she had
overlooked that item Y had earlier been omitted from the works, such that only item
Z is properly the subject of the proceedings.
[45] The statement of claim does not meet that requirement. In paragraph 11, it deals with
the March charge. Paragraphs 11(a)-(d), which I have already set out, plead the
matters which are said to allege that the charge has arisen. What they do not say
anything about, however, is whether there is, in fact, a claim made in the statement
of claim for the items of work the subject of the March charge.
[46] Mr Hogg, in a rear-guard action, tried to persuade me that the pleading was sufficient
for two reasons.
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[47] First, he said the identification of the particular items of work could be seen to be a
question of particulars such that, where the pleading claims a total amount of
$189,602.13, it is only a matter of particularity to identify the items that are the subject
of the notice of claim.
[48] I disagree that on the face of this pleading that would just be a matter of particulars.
It might be so if the pleading’s sufficiently articulated even in the barest manner, that
the items of work identified in the notice of claim of charge that gave rise to the charge
remained outstanding and the sum due remained payable, but it does not do that.
[49] Even if paragraph 13 of the statement of claim had said that the second defendant is
“liable under the subcontract to pay the plaintiff the sum of $189,602.13, including
$48,691 for the items the subject of the notice of charge”, that might have been
enough, but it does not say any such thing.
[50] There is no allegation on the face of the pleading that the amount and items the subject
of the March 2017 notice of charge remain outstanding under the subcontract.
[51] Second, Mr Hogg also sought to rely on some of the facts in paragraph 11 of the
statement of claim. However, those facts relate to the circumstances at the time of
issue of the charge. They are not allegations which identify sums claimed in the
proceeding which link them in any way to the amounts in paragraph 11.
[52] This is, I accept, a fairly technical reading of the Act. Courts in this State have been
conscious of the consequences for subcontractors of technical readings of the Act and
have consistently asserted that the Act must be strictly complied with because it
creates for subcontractors proprietary interests that otherwise do not arise. A dated
but convenient example is Re Galaxy Investments Pty Ltd (in liq), unreported, White
J, SC No 152 of 1992, 17 August 1993 at 9-10.
[53] That case was to hand because it is another example in which failure to plead the
contractual basis for an amount necessary to be proved to give rise to the charge was
fatal, such that s. 15(3) was not complied with and the charge was invalid.
[54] That case arose in slightly different circumstances. A claim had been made and the
assertion was made that money was payable as retention money from the principal to
the head contractor. However, no facts were pleaded to show that the retention money
was actually owing, and that, her Honour said, was fatal.
[55] This case is not the same as that because here the claim in respect of the charge is not
asserted beyond the amount that was paid into court in respect of it, but the principle
remains the same. The pleading which seeks to enforce the charge must adequately,
at a minimum, advance a claim under the subcontract for the items of work that gave
rise to the notice of charge. It must plead the work that is subject to the notice of
charge and the amount claimed.
[56] Mr Codd also submitted that the statement of claim failed to assert an entitlement to
a charge. I do not have to decide that, but I should say I do not agree. I do not think
a declaration is necessary. Each pleading has to be interpreted against the
requirements of the statute, and here where a charge is pleaded, it is pleaded that an
amount was paid into court, it is pleaded that an amount remains in court, paid under
a charge, and a claim is made for that amount to be paid out to the subcontractor.
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That seems to me to be, in substance, asserting the proprietary right recognised by s.
5 of the Act; however, that is by way of obiter, because Mr Codd has persuaded me
in respect of his first point.
CONCLUSION
[57] The consequence, then, is that I dismiss the application for summary judgment on the
defence, to the extent it relates to the question of the part of the claim relating to the
alleged unlicensed work. I grant the application for summary judgment on the
defence, to the extent it relates to the part of the claim disputing the existence or
validity of any subcontractors’ charge. The consequence of that is, it seems, that the
remaining sum in the Magistrates Court of $189,602.13 should prima facie be paid to
the first defendant.
[58] Unfortunately the second defendant is not here. However, bearing in mind Mr
Weller’s evidence and the fact that a reasonable period of time has passed since
completion of the project, I propose to deal with that by ordering the payment out
from the Magistrates Court, by authority of this court, the balance that is there and
staying that order for 21 days.
[59] I order that notice of my order be given to the second defendant forthwith, and order
that the second defendant has leave to apply to vary or otherwise be heard on the order
within 14 days. If any such application is made it can be made to my Associate and
I will arrange for its prompt hearing.
[60] In respect of costs I order that the first defendant pay the plaintiff’s costs of the
application, to the extent it relates to the unlicensed work issue, on the standard basis,
in any event.
[61] I order that the plaintiff pay the first defendant’s costs of the application, to the extent
it relates to the Subcontractors’ Charge issue, and the costs of the proceedings in
respect of the Subcontractors’ Charge issue, in any event.
[62] Finally, I order that costs of the application that are not dealt with by those orders are
costs in the proceedings.
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Official source: https://www.sclqld.org.au/caselaw/QDC/2019/211