Does BCISPA continue to apply after a liquidation?

Façade Treatment v Brookfield Multiflex [2016] VSCA is “plainly wrong” and “should not be followed” according to Justice Stevenson in His Honour’s single-court judgment handed down yesterday.

The Façade case had held that the Building and Construction Industry Security of Payment Act (“BCISPA”) does not continue to apply once the subcontractor enters Liquidation.

Yesterday’s case, called Seymour Whyte v Ostwald Bros, held that this was plainly wrong.

As I am no expert on BCISPA issues in Victoria, I will leave it to the experts to analyse and scrutinise the case. 

The Court also ordered that the recovery of the alleged debt owed by Seymour Whyte to Ostwald Bros, be stayed until the procedures of set-off in s553C Corporations Act had been completed.

A possible future Hamersley Iron issue?

#SVVoidables #liquidation #justice

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