Event and Time
Event Description
- The owners of the land at 350 Ascot Vale Road, Moonee Ponds, Victoria, engaged DM Belo Developments Pty Ltd (“Belo”) for the construction of a multi-storey building under a Development Agreement dated 16 June 2017.
- On 20 April 2018, Belo entered into a Building Contract with Landmark to construct apartments and commercial spaces for $4.8 million.
- On 14 September 2020, an adjudicator determined that Belo owed Landmark $329,898.29 under the Building and Construction Industry Security of Payment Act 2002, which was not paid, leading to a judgment in favour of Landmark on 12 October 2020.
- Landmark subsequently sought to recover the owed amount from the owners, claiming they were "principals" under section 31 of the Act.
Application and Claims
- Landmark applied to recover the debt amount of $348,481.08 based on the debt certificate issued by the court.
- The owners denied liability, claiming they are not "principals" under the Act and that no payment was due to Belo from them after 17 March 2021.
Judicial Decisions
- The court ruled in favor of Landmark, determining that the owners were indeed "principals" as per section 31 of the Act.
- The owners were ordered to pay the amount stated in the debt certificate along with statutory interest.
Dispute Points and Legal Basis
Dispute Points
Landmark's Arguments:
- Landmark claimed that the owners were "principals" under the Act, thus liable for the amount owed to them.
- It argued the appropriate construction of the Development Agreement terms, particularly clause 2.3, indicated that the owners owe payments to Belo simultaneously as Belo owes payments to Landmark.
Owners' Arguments:
- The owners contended they were not "principals" as defined by the Act.