MINISTER FOR INDUSTRIAL AFFAIRS V CIVIL TECH PTY LTD

摘要

On 18 September 1990, the Minister (principal) contracted with Civil Tech (contractor) for the construction and installation of four flexible, underwater pipes, through which sea water was to be pumped to and from the Marine Research Laboratory at West Beach. A number of disputes arose between the parties after the contractor claimed to have completed the contract works. The matter was eventually referred to arbitration. The principal sought leave to appeal against the award of the arbitrator. The proposed notice of appeal raised complaints as to five aspects of the award, alleging that the arbitrator erred in law: (1) in awarding to the contractor an amount for monthly compound interest from the date the claim was submitted to the date of the award, and further, that the award of compound interest was made without the arbitrator identifying the reasons or the basis for such an award; (2) in failing to deduct from the amounts awarded to the contractor two ex gratia payments made by the principal to it in mid-1991 ($210,000) and in February 2002 ($343,000); (3) in finding that the contractor was not responsible for certain defects in the pipeline, and in rejecting the principal's counterclaim for rectification of the pipeline; (4) in ordering that the principal return the security under the contract; and (5) in finding that the principal had no further entitlement under the contract to recover damages for delay in completion.