International Construction Law Review
REGIONAL REPORT: MULTI-PARTY AND MULTI-CONTRACT ARBITRATIONS IN AUSTRALIA: A PERENNIAL PROBLEM IN DISPUTES INVOLVING MAJOR PROJECTS
Cara North*
Special Counsel, Corrs Chambers Westgarth, Melbourne, Australia
Eleanor Clifford**
Associate, Corrs Chambers Westgarth, Melbourne, Australia
SYNOPSIS
Construction contracts in Australia and around the world usually provide for disputes to be resolved via arbitration. Given the necessarily interrelated and complex contractual arrangements which govern complex construction projects, this often results in separate arbitration proceedings concerning multiple parties and contracts related to the same project. This article explores the challenges that arise when parties are faced with multi-contract and multi-party construction disputes and considers potential solutions available in Australia. The article also considers the additional problems that arise as a result of Tesseract International Pty Ltd v Pascale Construction Pty Ltd [2024] HCA 24, in which the Australian High Court held that proportionate liability legislation applies to arbitrations where the substantive law is that of Australia.
1. INTRODUCTION
Major construction projects by their very nature spawn many contractual relationships. Each relationship is usually bilateral, but the performance or breach of each contract (as well as the allocation of risk) often has flow-on effects throughout the contractual chain. Consequently, the frequency of
* Email: cara.north@corrs.com.au.
** Email: eleanor.clifford@corrs.com.au. This article received the 2024 Brooking Prize awarded by the Society of Construction Law Australia. The authors would like to sincerely thank Andrew Stephenson, Professor Richard Garnett and Associate Professor Wayne Jocic for their invaluable remarks on earlier drafts. Any errors are the authors.
Pt 2] Multi-party and Multi-contract Arbitrations in Australia
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