Supreme Court win for Thiess over MCC

MCC Mining has been ordered by the Supreme Court to pay mining contractor Thiess $7.3 million over a payment dispute at the Sino Iron project at Cape Preston.

The orders stem from a contract which Thiess, a subsidiary of listed contracting giant Leighton Holdings, and MCC entered into 2008 to provide construction services at Sino Iron.

In May 2010, Thiess submitted documents to MCC as a payment claim for the contract, which was not paid.

In July, Thiess applied to have a payment dispute determined by adjudication under the Construction Contracts Act 2004.

MCC contended the documents did not constitute a payment claim under the act, but the adjudicator disagreed, and held that MCC was liable to pay Thiess $7.3 million by August 2010.

Because MCC has not paid the amount, Thiess sought orders from the Supreme Court to enforce the determination of the adjudicator.

Justice Corboy of the Supreme Court determined leave should be granted to enforce the adjudicator's determination, and MCC should pay Thiess $7.3 million.