In Re PBS Building (Qld) Pty Ltd [2024] QSC 108, the Supreme Court of Queensland dealt with an application from administrators of PBS Building (Qld) Pty Ltd (the applicants) seeking directions regarding funds held in trust accounts. These funds were held under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) to ensure subcontractors were paid. The applicants sought directions on whether they could recover their remuneration, costs, and expenses from these trust accounts.
The Court, presided by Brown J, found that the BIF Act precludes the recovery of such costs directly from the trust funds. The provisions of the BIF Act clearly prioritize the payment of subcontractors' entitlements over any claims by administrators or liquidators. However, the Court did acknowledge that administrators and liquidators might still be able to seek remuneration under the principles established in equitable cases such as Re Universal Distributing Co Ltd (in liq) and Berkeley Applegate if they can show their work has directly benefited the trust beneficiaries.
The Court ultimately refused the application for directions under paragraphs [1] and [1B] but allowed the parties to request relisting if they seek directions in light of the judgment.