GMW Urban v Alexandria Landfill

GMW Urban v Alexandria Landfill

GMW Urban v Alexandria Landfill [2012] NSWSC 237


GMW Urban had constructed a waste facility at Eastern Creek and provided bank guarantees in the sum of $695,000 under a contract made with Alexandria Landfill Pty Ltd (ALF.)

As a result of an adjudication application judgement was obtained by GMW for $805,000. ALF had threatened to call upon the bank guarantees on the basis that there was $360,000 owing for liquidated damages. The question of liquidated damages had been considered by the Adjudicator and he had concluded that the Superintendent had not exercised his powers in good faith and that there were strong grounds supporting an extension of time.

Accordingly GMW sought exparte interlocutory relief and was granted orders restraining ALF from the calling of the guarantees and the bank from paying out.


Whether the court would restrain the calling of the bank guarantees where the calling of the bank guarantees would vitiate the benefit of the proceedings under the Act?


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