Jadd Projects Pty Ltd v Muldoon Tiles Supply & Fix Pty Ltd

[2004] WASCA 180

Western Australia Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Corporations
2. › Winding up
3. › Statutory demand
4. › Application to set aside
5. › Genuine dispute as to existence of debt
6. › Whether claim of total or substantial failure of consideration constitutes genuine dispute
7. › Corporations Law, s 459E(2)(e)
1. Contract
2. › Entire contracts
3. › Substantial performance
4. › Failure of consideration
5. › Whether defective performance of building sub-contract amounted to total or substantial failure of consideration
6. › Effect on entitlement to contract price
1. Practice and Procedure
2. › Appeal
3. › Appeal from Master
4. › Error of fact
5. › Finding unsupported by evidence

Quick Take

A claim of total or substantial failure of consideration in the performance of building work, supported by evidence of defective workmanship, constitutes a genuine dispute as to the existence of a debt sufficient to set aside a statutory demand under s 459E(2)(e) of the Corporations Law. Arrangements between the creditor and a third party (such as the building owner) cannot affect the debtor's contractual rights under a separate contract with the creditor.