Read the full judgment text of CACV 57/2010 on BabelCite. This 高等法院上訴法庭 judgment was delivered on 22 June 2010 before Hon Le Pichon JA, Lunn and Bharwaney JJ.
Construction contract dispute — Payment under Interim Payment Certificates — No formal sub-contract but parties proceeded on sub-contractual basis — Plaintiff’s entitlement to payment of IPC No. 4 certified sum of $1,111,000 — Subsequent IPC No. 6 deduction of $603,000 for defective work resulting in alleged overpayment of $502,501 — Defendant’s counterclaim for defective work damages and offset — Main legal issue: whether deduction in IPC No. 6 reduces plaintiff’s entitlement absent arbitration or joining employer — Court held deduction arises from same defects underpinning defendant’s counterclaim and corresponds to amount claimed — Defendant did not initiate arbitration nor join employer in proceedings — Defendant’s failure to pay plaintiff despite receipt of payment from employer — Trial held over three days focusing on defects identified in open-up inspections — Judgment for plaintiff for full IPC 4 sum; counterclaim allowed only $20,000 — Appeal dismissed. Costs ordered in favour of plaintiff.
Legal issues: Legitimacy of deduction for defective work in IPC 6
Outcome: Appeal dismissed; judgment for plaintiff for $1,111,000, less $20,000 counterclaim deducted from retention monies