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In Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (In liquidation)  NSWCA 11 (“Seymour Whyte”), the NSW Court of Appeal unanimously held that as a matter of construction, the Building and Construction Industry Security of Payment Act 1999 (NSW) (“NSW SOP Act”) is capable of operating for the benefit of a builder or subcontractor which has gone into liquidation. In reaching its decision, the NSW Court of Appeal held that the Victorian Court of Appeal decision in Façade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd  VSCA 247 was “plainly wrong” and should not be followed.
This Update provides a summary of Seymour Whyte and the ruling of the Court in that case. It also looks at the implications that the case will have in the Singapore context, given that Singapore’s Building and Construction Industry Security of Payment Act (Cap 30B) (“SOP Act”) was largely modelled after the NSW SOP Act.
12 Jun 2019 | Singapore