April 01, 2026
Black Sheep Building Pty Ltd v A J Portelli Medical Pty Ltd atf A J Portelli Medical Trust [2025] NSWSC 1472 – Case summary
On 8 December 2025, the New South Wales Supreme Court (Peden J) delivered judgment in Black Sheep Building Pty Ltd v A J Portelli Medical Pty Ltd atf A J Portelli Medical Trust [2025] NSWSC 1472.
The builder, Black Sheep, sued Adrian Portelli for unpaid construction costs, including a $14m NDIS hub project. Portelli raised defenses in relation to the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act) claims.
The Court ruled for Black Sheep, granting summary judgment and rejected Portelli's defenses of premature claims, lack of insurance for residential work, and allegations of major defects in the penthouse and other projects.
Background:
Black Sheep Building was engaged by Adrian Portelli for significant construction work, including a large NDIS facility in NSW and work on his Melbourne penthouse.
Disputes arose over payments, with Black Sheep issuing payment claims under NSW's SOP Act.
Black sheep applied for summary judgement of the unpaid portions of two payment claims issued under the SOP Act as a debt pursuant to sections 14 and 15(2)(a)(i) of the Act.
Portelli's Arguments (Defense):
Portelli argued that:
- the payment claims issued under the SOP Act were invalid because they were issued too early and did not identify the construction work to which they related;
- Black Sheep could not claim payment because they lacked the required residential building insurance under the Home Building Act 1989 (NSW) (HBA); and
- there were significant defects in the work, including waterproofing issues.
Court's Decision:
The NSW Supreme Court granted summary judgment for Black Sheep, finding Portelli's defenses unmeritorious.
Furthermore, the judgment considered and interpreted the meaning of “self-contained unit” within the definition of "dwelling" under the HBA. This is a point that had not been previously considered by the Court.
Key Takeaway:
The case highlight disputes that are common in the construction industry, with the Court’s reluctance to derail payment claims under the SOP Act on technical grounds, and reinforcing builders' rights to payment.