Australia, June 2 -- New South Wales Land and Environment Court issued text of the following judgement on May 2:

1. This judgment relates to a notice of motion filed on 23 April 2025 in which the applicant seeks a stay of part of an order made by Rees J on 17 April 2025. The notice of motion was filed on the same day as the notice of appeal, which claims that the primary judge erred in making an order concerning the payment out of monies paid into Court.

Before addressing the stay application, it is necessary to set out the rather complex history of the proceedings.

Relevant chronology The proceedings arise from disputes concerning the conversion of the applicant Club's existing bowling green to car parking and an upgrade of an existing car park. On 7 December 2023, the Club entered into contract with the respondent (Builder) in relation to the works (Contract). Shortly thereafter, the Builder entered into a sub-contract with All Civil Solutions Group Pty Ltd (Sub-Contractor) for virtually all of the works.

The Sub-Contractor subsequently served on the Club three debt certificates issued by the District Court under s 7 of the Contractors Debts Act 1997 (NSW) (CD Act). The debt certificates are dated 16 August 2024, 13 December 2024 and 13 February 2025 (Debt Certificates). The effect of their service on the Club was, under s 8 of the CD Act, to assign to the Sub-Contractor the Club's obligation to pay money owed to the Builder under the Contract in the amounts specified in the Debt Certificates.

In response to the Debt Certificates, the Club paid to the Sub-Contractor amounts that it would otherwise have been obliged to pay to the Builder. These payments were made on 12 September 2024, 20 December 2024 and 31 January 2025.

For convenience, I set out a table prepared by Stevenson J (see at [10] below) containing the dates of the Debt Certificates, the amounts of those Debt Certificates, the amounts paid by the Club to the Sub-Contractor, and the balance outstanding at particular points in time:

Table omitted can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1968e4b3598be4e3ba2393cc)

7. The final line of the table indicates that, as at 13 February 2025, the Club owed the Sub-Contractor $1,200,670.24.

8. It is also necessary to note as part of the chronology that, on 25 January 2025, the Builder obtained an adjudication determination against the Club under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOPA). On 3 February 2025, the Builder filed the adjudication certificate in the Supreme Court. Judgment was entered in favour of the Builder against the Club for $2,141,780.73 (Judgment). The Judgment was made in proceedings 2025/44205.

9. On 20 February 2025, the Club commenced separate judicial review proceedings (2025/68603), seeking to quash the adjudication determination to the extent of $1,030,281.79 (SOPA Proceedings).

10 On 25 February 2025, the Club filed a notice of motion in proceedings 2025/44205 seeking an order staying the Judgment. That notice of motion was determined by Stevenson J on 27 February 2025 (see Warrane Design Construct Fit-Out Pty Ltd v Woonona Bulli RSL Memorial Club Ltd [2025] NSWSC 123). His Honour found that the Judgment overstated the amount due by the Club to the Builder in the amount of $1,200,670.24, being the balance owing to the Sub-Contractor as a result of the assignments produced by service of the Debt Certificates. His Honour noted that the amount of $941,110.49 under the Judgment remained owing by the Club to the Builder. Noting that the SOPA Proceedings were fixed for final hearing on 6 March 2025, Stevenson J ordered that the Judgment be stayed to the extent of $1,200,670.24, but that the Club should pay into Court $941,110.49 to abide the outcome of those proceedings.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1968e4b3598be4e3ba2393cc)

Disclaimer: Curated by HT Syndication.