CMF Projects Pty Ltd v Masic Pty Ltd & Ors [2014] QSC 209
SUPREME COURT OF QUEENSLAND
CITATION: CMF Projects Pty Ltd v Masic Pty Ltd & Ors [2014] QSC
209
PARTIES: CMF PROJECTS PTY LTD
ACN 114 539 212
(applicant)
v
MASIC PTY LTD
ACN 152 116 679
(first respondent)
and
SCOTT PETTERSSON
(second respondent)
and
AJUDICATE TODAY PTY LTD
ABN 39 109 605 021
(third respondent)
FILE NO: 1972 of 2014
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT: Supreme Court of Queensland
DELIVERED ON: 27 August 2014
DELIVERED AT: Brisbane
HEARING DATE: 28 March 2014
JUDGE: Daubney J
ORDERS: 1. There be a declaration that the adjudication decision
made by the second respondent and dated 29 January
2014 is void.
2. I will hear the parties as to costs.
CATCHWORDS: COMMUNICATIONS LAW – POSTAL SERVICES –
NON-DELIVERY OR ERRONEOUS DELIVERY – where
the applicant seeks a declaration that the adjudicator’s
decision is void – where the adjudicator did not consider the
applicant’s “adjudication response” – where the adjudicator
excluded the “adjudication response” from consideration as it
was not received within the required time limits of s 24 of the
Building and Construction Industry Payments Act 2004 (Qld)
– where the applicant contends that its “adjudication
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response” was in time, due to the way in which the “notice of
an adjudicator’s acceptance of the application” was served on
the applicant – whether the “adjudication response”
conformed with the requirements of s 24 and consequently
the adjudicator’s decision is void for not taking the
“adjudication response” into consideration
Acts Interpretation Act 1954 (Qld), s 39
Corporations Act 2001 (Cth), s 109X
Building and Construction Industry Payments Act 2004
(Qld), ss 21, 23, 24, 25 and 103
Brodyn Pty Ltd v Davenport (2004) 61 NSWLR 421; [2004]
NSWCA 394, cited
Falgat Constructions Pty Ltd v Equity Australia Corporation
Pty Ltd [2006] NSWCA 259, cited
Firedam Civil Engineering Pty Ltd v KGP Construction
[2007] NSWSC 1162, cited
Northbuild Construction Pty Ltd v Central Interior Linings
Pty Ltd [2012] 1 Qd R 525; [2011] QCA 22, cited
Polstar v Agnew (2007) 208 FLR 226; [2007] NSWSC 114,
followed
Scope Data Systems Pty Ltd v Goman (2007) 70 NSWLR
176; [2007] NSWSC 278, cited
COUNSEL: G Coveney for the applicant
A Lonergan for the first respondent
No appearance for the second respondent
No appearance for the third respondent
SOLICITORS: Arrow Law for the applicant
Usher Levi Lawyers for the first respondent
No appearance for the second respondent
No appearance for the third respondent
[1] The applicant (“CMF”) seeks a declaration that an adjudication decision made on
29 January 2014 by the second respondent under the Building and Construction
Industry Payments Act 2004 (“BCIPA”) is void.
[2] In August 2013, CMF and the first respondent (“Masic”) entered into a construction
contract for the performance of certain concrete works by Masic. This work was
subsequently completed. On 5 December 2013, Masic served on CMF a payment
claim under s 17 of BCIPA by which it claimed $48,993.60 (inclusive of GST) for
contract works, variations, and retention monies.
[3] On 17 December 2013, CMF delivered a payment schedule to Masic pursuant to
s 18 of BCIPA. The amount of the payment schedule was the negative sum of
$40,445.95 (inclusive of GST), thus allowing for no payment to Masic. On
7 January 2014, Masic made an adjudication application to the third respondent,
which is an “authorised nominating authority” under BCIPA. The third respondent
referred the adjudication application to the second respondent (“the adjudicator”).
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[4] On 7 January 2014, Masic made an adjudication application to the third respondent,
which is an “authorised nominating authority” under BCIPA. The third respondent
referred the adjudication application to the second respondent (“the adjudicator”).
On that same day, 14 January 2014, a notice of the adjudicator’s appointment was
mailed by “express post” to CMF. This letter was addressed not to CMF’s
registered office, but to its post office box at the Mansfield Post Office.
[5] On 21 January 2014, CMF, by its solicitors, gave its adjudication response to the
adjudicator. Later that day, the adjudicator sought further submissions from Masic
and CMF regarding the timeliness of CMF’s adjudication response. CMF
responded with submissions on 22 January 2014. On 23 January 2014, the
adjudicator sought further submissions, and provided a copy of an “express post”
envelope and an Australia Post “tracking record” in respect of the posting of the
notice of appointment. CMF, by its solicitors, made further submissions later on
23 January 2014.
[6] On 29 January 2014, the adjudicator gave notice of his decision, and his reasons for
decision were subsequently provided to the parties. As part of his decision, the
adjudicator determined that the notice of his appointment as adjudicator had been
served on CMF on 15 January 2014, that the last date for CMF to give its
adjudication response was 17 January 20141 and that he therefore excluded the
adjudication response given by CMF on 21 January 2014 from consideration in his
adjudication. In that regard, s 25(2) of BCIPA provides:
“(2) An adjudicator must not consider an adjudication response unless it
was made before the end of the period within which the respondent
may give a response to the adjudicator.”
[7] CMF’s primary argument on the present application is that the adjudicator was
wrong in concluding that CMF’s adjudication response had been given out of time,
that the adjudicator consequently erred in disregarding the adjudication response,
and that the adjudicator’s decision is therefore void for failing to take CMF’s
adjudication response into consideration.
[8] It is clear from the adjudicator’s reasons that his decision on this point was based on
information he had received from the parties and also from his own investigations
with the third respondent. It is necessary to set out in full the relevant part of the
adjudicator’s reasons:
“Adjudication Response
13. There is no question that having issued a Payment Schedule the
Respondent accrued a right to provide an Adjudication Response
(see section 24(3) of the Act). That right is not unfettered. Clearly
the Adjudication Response must develop reasons already stated in
the Payment Schedule (section 24(4) of the Act) and must be issued
within the times detailed in section 24(1) of the Act. Section 24(1)
provides:
24 Adjudication responses
(1) Subject to subsection (3), the respondent may give
the adjudicator a response to the claimant’s
1 Building and Construction Industry Payments Act 2004 (“BCIPA”), s 24(1)(b).
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adjudication application (the adjudication response)
at any time within the later of the following to end -
(a) 5 business days after receiving a copy of the
application;
(b) 2 business days after receiving notice of an
adjudicator’s acceptance of the application.
14. As noted above the ANA issued a notice of my acceptance to the
parties on 14 January 2014. It is common ground between the
parties that the Adjudication Application was issued to the
Respondent on 7 January 2014. It follows that the five business
days following service of the application ran until 14 January 2014.
The only date in dispute is the date of service of the notice of my
appointment. The Act allows a Respondent two Business Days
following the service of that document for the provision of a valid
Adjudication Response. A caused an enquiry directly to the ANA
as to the express post tracking number its records disclosed was
relevant to the issue of the notice of my appointment to the
Respondent. The ANA provided that number and I undertook a
query of the online records held by Australia Post. The information
provided was:
The Claimant - 60404963793092
The Respondent - 60404963789095
15. The online query indicated the notice had been delivered to the
Respondent on 15 January 2014. I also note that in the material
provided to me by the ANA is a copy of correspondence issued by
the Respondent’s legal adviser to the ANA dated 9 January 2014.
That correspondence evidenced the following matters to my
satisfaction:
15.1 Arrow Law acted for the Respondent,
15.2 The Payment Claim had been served on the Respondent
on 5 December 2013,
15.3 The Payment Schedule had been served on 17 December
2014,
15.4 The Respondent’s adviser believed that 10 Business Days
had expired following the service of the Payment Schedule
before service of the Application on 7 January 2014,2
15.5 The Adjudication Application had been served on the
Respondent on 7 January 2014, and
15.6 All correspondence regarding the matter should be
directed to the legal representative.
2 This is not correct. The definition of a Business Day in the Act provides “business day has the
meaning given in the Acts Interpretation Act 1954, section 36 but does not include 27, 28, 29, 30 or
31 December”. It follows that service of the application on the ANA (service on the Respondent
being irrelevant for current purposes) was required on or before 8 January 2014.
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RFFS 1
16. I issued a series of questions to the parties and an extract of the
online report. That document was titled Request For Further
Submissions and was issued on 21 January 2014. A copy of that
document is at Annex A. I posed three questions and now
summarise the positions of the Respondent and Claimant.
Question A
17. The Respondent provided an initial response which raised several
bases on which the Adjudication Response could be said to be
issued within time. The Claimant provided no response at first
instance. The Respondent’s reasons as I understood them are:
17.1 Section 103 of the Act allows service of documents should,
or could, be served in accordance with the contract. Clause
26 of the Contract3 establishes a regime for service of
notices and the current service process is not compliant with
that contractual provision. By application of that logic the
Notice has not been validly served on the Respondent.
17.2 Clause 26(a)(ii) of the contract would deem service took
place two business days following post and therefore the
earliest date is 16 January 2014.
17.3 The Notice is dated 14 January 2014, but the envelope and
face of the document displays no date stamp or the like.
Question B
18. The Respondent provided an initial response which pressed the
following issues regarding the validity of the Adjudication
Response if it was established that service of the Notice of
appointment occurred on 15 January 2014.
18.1 Section 25(5) of the Act states the time runs from when the
Notice is received and factually that occurred when
collected from the Post Office box on 20 January 2014.
18.2 Received has a different meaning from served and the word
received is used in section 25 and that is the deadline or
trigger date.
18.3 A copy of the envelope which enclosed the information is at
Annex A displays no delivery time information.
18.4 If the delivery is found to be 16 January 2014, it is requested
the Adjudicator ‘reviews this matter with leniency’.
Question C
19. The Respondent distinguishes the referenced judgment of the High
Court in Fancourt v Mercantile Credits Ltd [1983] HCA 25.
3 The Respondent has identified clause 25, however it is clear it has quoted from clause 26 which
appropriate deals with NOTICES under the contract.
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Conclusion RFFS 1
20. Having reviewed the responses provided by the Respondent, I made
a further enquiry of the ANA as to what explanation if any it had for
the envelope provided as an Annex to the Respondent’s
submissions. The ANA responded by providing a scanned image of
the actual Express Post envelope issued and a facsimile tracking
record. I caused both of these to be issued to the parties with
further questions. Those further questions became RFFS 2 and is
attached as Annex B. Before moving to consideration of that
document I note the following regarding RFFS 1:
20.1 The Claimant provided no submissions.
20.2 Question A -
20.2.1 Service by the ANA in accordance with the
contract, may be useful, but it is not mandatory.
The service of notices under the Act is directed by
section 103. That section allows service in
accordance with the contract and compliance with
the Acts Interpretation Act (AIA) or any other law
regarding service. Section 39 and 39A of the AIA
operate together and I am satisfied that service on
the Respondent by way of the Post Office Box is
valid. The Post Office Box is prominent as being
an address of the Respondent on documents such
as the Payment Schedule. I am satisfied that the
Respondent has held this out as a valid address for
service4 and in effect as an ordinary place of
business.5
20.2.2 Deemed date of Service - I am further satisfied
that the deemed date of service in the AIA and the
contract can be displaced by suitable evidence of
service. In effect the postal rule (as section 39 of
the AIA is commonly known is a presumption
(see for example Peter Boyd Enterprises Pty Ltd v
QR Concrete Pty Ltd [2012] QDC 324). In this
regard the records of the express post service
clearly evidence service on 15 January 2014.
20.2.3 No date stamp - on envelope or face of document
- It is clear that the envelope attached to the
Respondent’s document does not include any date
stamps and none would ordinarily be expected in
my view where it was conveyed by post. As
noted below the envelope provided as evidence by
the Respondent does not accord with the evidence
of the ANA. I am not preliminarily persuaded
that envelope or the absence of a date/time stamp
is evidence of anything.
4 See for example discussions in Royal Tiles Constructions Pty Limited v park View Constructions Pty
Limited [2006] NSWDC 182.
5 See for example Parsons Brinckerhoff Australia Pty Ltd v Downer EDI Works Pty Ltd [2010]
NSWSC 1295.
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20.3 Question B -
20.3.1 The Respondent observes that calculation of the
date for service of an Adjudication Response in
section 24(1)(b) uses the term ‘receiving’ not
served. This is an interesting inconsistency where
the comparable section creating the obligation
(section 23(1)) provides an obligation to serve. It
is illogical to interpret the legislation to create
lacunae where a party has served a document,
however it is not received because the other party
has not attended the letter box or a particular
recipient is on leave. To suggest a divergence
between the meaning of service and receipt
without a very clear statutory or contractual basis
would render the service of documents a technical
impediment to the intent of parliament in passing
the Act. The second issue is that given a raft of
judicial pronouncements regarding service by
email and electronic means it appears that a
document is validly received when it enters the
electronic means it appears that a document is
validly received when it enters the electronic
system of the other party (see Electronic
Transactions Act). Finally in this regard, the
Respondent has done no more than highlight a
difference in language in the legislation. I am not
persuaded that difference was intended to have the
effect alleged.
20.3.2 The envelope attached to the Respondent’s
document is clearly not an express post envelope.
The scan appears to display in the upper left
corner part of a senders address. That address is
not the address of the ANA, it is additionally an
address in NSW. I accept the document discloses
no time of service. I also note that the Australia
Post system uses bar code scanning and the bar
codes are not present on the face of that
document. I am not persuaded that the envelope
is definitive of anything.
20.3.3 I am not persuaded and the Respondent did not
direct me to any provision in the Act or judicial
statement that afforded an adjudicator a discretion
to consider the validity of documents on any basis
that was more lenient than the statutory timelines.
20.4 Question C - While I accept the decision of the High Court
in Fancourt v Mercantile Credits Ltd [1983] HCA 25, it can
be distinguished. I accept that judgment accepts that service
is affected when the document is delivered to the Post Office
in certain circumstances.
RFFS 2
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21. In RFFS 2 I attached to scans of the documents provided by the
ANA. Those documents included a scan of the express post
envelope displaying the address and the express post tracking
number. Additionally that document provided a scan of the
successful transmission of the Notice to the Respondent’s legal
team. That transmission was to the fax number shown on the
letterhead of the Respondent’s legal advisers and was date stamped
as having occurred on 14 January at 14:31 hours6.
22. I sought a response from the parties if there was any basis that could
be provided that would displace the evidence provided by the ANA
of valid service.
23. The Respondent advised it had issued a request to Australia Post,
and a ‘priority investigation’ would be commenced and results
would be expected within 24 hours7. The other basis suggested that
would support the Respondent’s position are:
23.1 The document was sorted into a different PO Box, opened
inadvertently and then placed in a different envelope,
addressed to the correct address and posted using ordinary
post.
23.2 Australia Post was not able to confirm when an item was
placed in a post box or that it was placed in the correct post
box.
23.3 The Respondent relied on its submissions provided in
response to RFFS 1.
Conclusion RFFS 2
24. As I have noted above the concept of service by post creates a
rebuttable presumption. That presumption is that service will be
effected in the ordinary course of post. The ordinary course of post
for Express Post between the two relevant postcodes is that it will
be delivered the next Business Day. While the Respondent has
evidenced documents and asserted that investigations have
commenced and declarations could be provided this has not
occurred. As noted above the Act does not grant to adjudicators a
discretion to adjust times or allow material on some basis similar to
equity or the like. There are several matters which give me some
comfort in being satisfied that the Notice of my Appointment in
regular form was served on the Respondent on 15 January 2014.
Those matters are:
24.1 Australia Post tracking system shows it was at the correct
post office and marked as delivered on that day,
24.2 There is no evidence beyond assertions suggesting it is not
correct8,
6 While it is not decisive this is probably Eastern Summer Time as the ANA office is situated in
Sydney.
7 As at the date of the release of this decision no advice has been provided on the outcome of the
investigation.
8 See Court regarding onus in Kittu Randhawa v Monica Benavides Serrato [2009] NSWSC 170.
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24.3 No investigation report providing a credible explanation for
taking receipt, changing envelopes and reposting of the
Notice has been provided, and
24.4 The courts have generally found that express post tracking is
an acceptable standard of proof absent very clear evidence
to displace the evidence of service (see generally Steel v
Beks [2010] NSWSC 1405).
25. Were it required, and in my view it is not, I would also note that
there is no contest that the document was served on the
Respondent’s legal advisers by facsimile on 14 January 2014.
While there could be an issue of the capacity of the Respondent’s
legal advisers to accept service9, it is highly likely that the advisers
would have notified or forwarded the notice to the Respondent thus
effecting service on either the 14th or 15th of January 2014 in any
event (see for the applicable principle Neumann Contractors Pty Ltd
v Traspunt No 5 Pty Ltd [2010] QCA 119 at paragraph 31)
Conclusion Date of Service of Notice of Appointment
26. I am satisfied that the Notice of my Appointment was served on 15
January 2014. I am further satisfied and it is common ground
between the parties that the Adjudication Application was provided
to the Respondent on 7 January 2014. The consequence is that the
Act requires for a valid Adjudication Response to be issued it must
comply with section 24(1) which provides:
24 Adjudication responses
(1) Subject to subsection (3), the respondent may give
the adjudicator a response to the claimant’s
adjudication application (the adjudication response)
at any time within the later of the following to end -
(a) 5 business days after receiving a copy of the
application;
(b) 2 business days after receiving notice of an
adjudicator’s acceptance of the application.
27. Calculating the dates for provision of a valid Adjudication
Response is:
27.1 Following Section 24(1)(a) is 14 January 2014
27.2 Following Section 24(1)(b) is 17 January 2014
It follows that by providing a document on 21 January 2014, that
document is outside the statutory period for the provision of a valid
Adjudication Response and cannot be considered. In the terms of
section 26(2)(d) of the Act it is not a document properly made by
9 See Emag Constructions Pty Limited v Highrise Concrete Contractors (Aust) Pty Limited [2003]
NSWSC 903, however unlike in that matter, the legal adviser in this matter did expressly enquire as
to service of the acceptance and requested (see letter of 9 January 2014):
‘Please direct all correspondence in this matter to our office.’
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the Respondent in support of the Payment Schedule. The document
and my ability to consider the document must reflect the clear
statutory direction provided in section 25(2) of the Act which
provides:
(2) An adjudicator must not consider an adjudication
response unless it was made before the end of the
period within which the respondent may give a
response to the adjudicator.
28. It is relevant to record that I have read the Adjudication Response to
ascertain if there were any allegations of fraud or the like present.
However, I am satisfied that I cannot have the content weigh upon
my decision in this matter. The effect exclusion of the Adjudication
Response does not preclude the full application of the Payment
Schedule, which as noted above is reasonably extensive document.
29. Finally, even if I was incorrect regarding the exclusion of the
Adjudication Response, and I do not believe I am, I have read the
Adjudication Response and the content does not establish on the
balance of probability the deductions pressed beyond those recorded
below.”
[9] Underpinning the adjudicator’s ruling were the following propositions:
(a) That posting the notice of appointment to CMF’s post office box was good and
effective service of the notice of appointment, and
(b) The deposit of the letter containing the notice of appointment in CMF’s post
office box on 15 January 2014 meant that this was the day on which the notice
of appointment was ‘received’ by CMF.
[10] The information provided to the adjudicator, and the uncontradicted evidence before
me, was that the adjudication notice was not, in fact, ‘received’ in CMF’s office
until 20 January 2014.
[11] For the reasons which follow, it seems to me that the adjudicator was in error in
respect of both of these propositions.
[12] One matter which is not fully explained in the adjudicator’s reasons is why the
adjudication notice was addressed to the post office box address at all. All that was
said by the adjudicator was that the post office box was ‘…prominent as being an
address of [CMF] on documents such as the Payment Schedule’, and that he was
therefore satisfied that CMF had held this out as a valid address for service and in
effect as an ordinary place of business.10 As against this, however:
(a) the address of CMF specified on the face of the relevant contract was its street
address (61 Don Young Road, Nathan, Qld 4111); and
(b) the Payment Schedule in fact listed both the post office box and the street
address.
10 Adjudicator’s Decision, dated 29 January 2014, at [20.2.1].
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[13] Section 24(1)(b) of BCIPA relevantly prescribes the time for a respondent to give an
adjudication response as being within ‘two business days after receiving notice of
an adjudicator’s acceptance of the application’. That time limit is premised on an
adjudicator having accepted the adjudication application ‘by serving notice of the
acceptance on the claimant and the respondent’.11
[14] In dealing with the propositions which were central to the adjudicator’s ruling on
this point, it is necessary to ask ‘whether the mailing of the notice of appointment to
CMF’s post office box address was, of itself, good and effective service?’ Section
23(1) of BCIPA prescribes that the adjudicator ‘may accept the adjudication
application by serving notice of the acceptance on the claimant and the respondent’.
[15] In relation to the means by which service of the adjudicator’s notice may be
effected, s 103 of BCIPA provides:
“103 Service of notices
(1) A notice or other document that under this Act is authorised or
required to be served on a person may be served on the person
in the way, if any, provided under the construction contract
concerned.
(2) Subsection (1) is in addition to, and does not limit or exclude,
the Acts Interpretation Act 1954, section 39 or the provision of
any other law about the service of notices.”
[16] The means of service contemplated by s 103(1) was not utilised in this case. The
contract between the parties relevantly provided12 for notices to be given by being
left at the respondent company’s registered office or principal place of business or
by being sent by mail to the address of the party stated in the contract. As I have
already noted, the address specified for CMF in the contract was its street address.
It could not be said, therefore, that mailing the adjudicator’s notice of acceptance to
the post office box was a means of service provided for under the contract.
[17] But, as is preserved by s 103(2) of BCIPA, the contractual provisions do not exhaust
the permissible means of service.
[18] Section 39(1)(b) of the Acts Interpretation Act 1954 (Qld) (“Acts Interpretation
Act”) relevantly provides that, if an Act requires a document to be served on a body
corporate, the document may be served “by leaving it at, or sending it by post, telex,
facsimile or similar facility to, the head office, a registered office or a principal
office of the body corporate”.
[19] Further, s 109X(1) of the Corporations Act 2001 (Cth) (“Corporations Act”)
relevantly provides:
“For the purposes of any law, a document may be served on a company by
... leaving it at, or posting it to, the company’s registered office; ...”
[20] Whilst these provisions are clearly facilitative, and provide for the post to be used as
a means of service, as can be seen from the above provisions, service is only
efficacious under the Acts Interpretation Act if the mailing is to “the head office, a
registered office or a principal office” or, under the Corporations Act, if the mailing
11 BCIPA, s 23(1).
12 Clause 26.
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is to “the company’s registered office”. In the present case, the document was sent
in the mail to a post office box.
[21] In Polstar v Agnew (2007) 208 FLR 226, Barrett J had to consider the validity of
service of a statutory demand made under the Corporations Act which was
purportedly served by it being sent to the company’s sole director at a post office
box address. After referring to s 109X of the Corporations Act 2001 (Cth) and the
equivalent Acts Interpretation Act provision, Barrett J said:
“17 The Corporations Act provision contemplates posting to “the
company’s registered office”. The Acts Interpretation Act provision
also refers to “a registered office”, as well as “the head office” and “a
principal office”. The common theme is “office”. Provisions of the
Corporations Act imposing requirements with respect to a company’s
“registered office” elucidate the meaning of “office” in the expression
“registered office”. Those provisions make it clear that such an
office may only be at a location capable of being “open to the
public”: see s 145(1). It must also be a location at which it is possible
to display prominently the company’s name (s 144(1)) and the words
“Registered Office” (s 144(2)). Furthermore, it is contemplated that
there will be “premises at the address of” the registered office (see
s 143(1)) and that “premises” will be used “as the address of the
company’s registered office” (s 143(2)(a)).
18 In short, the Corporation Act’s concept of “office”, in the
references to “registered office”, is one centred on a physical
location in the nature of premises (that is, a building or a room in
or section of a building) to which persons may go and which can
be identified by prominent display as a company’s registered
office. I am of the opinion that the Acts Interpretation Act reflects
a similar concept of “office” in its reference to “registered office”,
“head office” and “principal office”.
19 On this basis, a post office box cannot be a company’s “office” –
any more than it can be a place at which documents may be left
by way of service (Sarikaya v Victorian Workcover Authority (1997)
80 FCR 262; Croker v Ewen [2000] NSWCA 186) or an address for
service (Quitstar Pty Ltd v Cooline Pacific Pty Ltd (2002) 168 FLR
213).”13 (emphasis added)
[22] Reference may also be made to the decision of Scope Data Systems Pty Ltd
v Goman (2007) 70 NSWLR 176 in which White J expressed the view that
“delivery to the post office box cannot be equated with delivery to a company’s
registered office”.14
[23] Accordingly, in the present case I am of the view that mailing the adjudicator’s
notice of acceptance to the post office box address was not service in accordance
with either s 109X of the Corporations Act or s 39 of the Acts Interpretation Act.
[24] That is not to say, obviously, that the notice of acceptance was not ultimately served
on, and received by, CMF. What it does mean, however, is that the adjudicator’s
premise that service of the notice of acceptance had been effected on 15 January
13 (2007) 208 FLR 226, at [17] – [19].
14 At [86].
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2014, when the letter was apparently deposited into the post office box, was
erroneous.
[25] Notwithstanding the observations by the adjudicator at paragraph 20.3.1 of his
reasons, there is a distinction in BCIPA between the notions of “service” and
“receipt” of documents. The word “receive” in the Building Construction Industry
Security of Payment Act 1999 (NSW) has been considered on numerous occasions,
particularly in the context of s 17(3)(c) of that Act, which is the equivalent of
s 21(3)(c) of BCIPA. That subsection relevantly provides that an adjudication
application must be made “within 10 business days after the claimant receives the
payment schedule”. It seems now to be clear enough on the authorities that the
word “receive” connotes that, whilst the document in question need not come to the
attention of a particular person within the relevant office, it nevertheless does
actually need to have arrived at, and thereby been received’, at the recipient’s
registered office, or place of business, and be there during normal office hours.15
[26] For completeness, I should note that it was properly conceded by counsel for Masic
that the means by which CMF received the adjudicator’s notice of acceptance are
immaterial, and that what was relevant was the date that the acceptance notice was
actually received by the applicant.16
[27] The adjudicator was in error in equating the deposit of the letter into the post office
box on 15 January 2014 with receipt of the notice by CMF. As I have already said,
the information before the adjudicator, and the uncontradicted evidence before me,
was that the notice of acceptance was not actually received in CMF’s office until
20 January 2014. That, then, was the day relevant for the calculation of the time
limit within which the adjudication response had to be given, as calculated under s
24(1)(b) of BCIPA.
[28] The adjudicator also referred to, but in fairness did not base his decision on, an
assertion that the notice of acceptance had also been sent by facsimile to CMF’s
solicitor. As to this, however, there are a couple of things that could be said. First,
there was no suggestion that service on CMF’s solicitor was a valid means of
service on CMF. Secondly, whilst it was asserted that the facsimile had been sent,
the information given to the adjudicator, and the uncontroverted evidence before
me, was that no such facsimile had in fact been received. In particular, there was no
evidence that, even if the transmission had been made, the documents were actually
received in a readable form by the solicitors’ office.17 It is unnecessary to say
anything more on this aspect because the adjudicator’s ruling clearly did not turn on
this point.
[29] It follows from what I have said that I have concluded that the adjudicator erred in
not considering in his adjudication, CMF’s adjudication response. On the
information before the adjudicator, and on the evidence before me, the adjudicator’s
notice of acceptance was received by CMF on 20 January 2014, and accordingly the
adjudication response given on 21 January 2014 was within time.
15 Falgat Constructions Pty Ltd v Equity Australia Corporation Pty Ltd [2006] NSWCA 259 at [63];
Firedam Civil Engineering v KJP Construction [2007] NSWSC 1162 at [64] – [65].
16 First respondent’s written outline of submissions, filed by leave on 28 March 2014, at [37].
17 Austar Finance Group Pty Ltd v Campbell (2007) 215 FLR 464.
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[30] By s 26(2)(d) of BCIPA, the adjudicator was required to consider CMF’s
adjudication response when deciding the adjudication application. The
adjudicator’s failure to consider CMF’s adjudication response amounted to a failure
to comply with one of the essential statutory requirements for a valid adjudication.
It is now well-settled that adjudications which do not comply with the essential
statutory requirements are void.18
[31] My conclusion on this point means it is unnecessary to consider an alternative
argument that the adjudicator’s failure to consider the adjudication response was a
denial of procedural fairness. Nor is it necessary for me to undertake, as was sought
by counsel for the respondent, a review as to whether consideration of the
adjudication response would have made any difference to the decision reached by
the adjudicator. The adjudicator’s decision was, for the reasons I have set out
above, void, and a declaration to that effect should follow.
[32] Accordingly, it will be ordered:
1. There be a declaration that the adjudication decision made by the second
respondent and dated 29 January 2014 is void.
2. I will hear the parties as to costs.
18 Brodyn Pty Ltd v Davenport (2004) 61 NSWLR 421; Northbuild Construction Pty Ltd v Central
Interior Linings Pty Ltd [2012] 1 Qd R 525.
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Official source: https://www.sclqld.org.au/caselaw/QSC/2014/209