B.M.D. Constructions Pty Ltd v Construction, Forestry and Maritime Employees Union (No 4)
B.M.D. Constructions Pty Ltd sought to strike out paragraphs in a defence filed by the Construction, Forestry and Maritime Employees Union (CFMEU) regarding alleged breaches of the Fair Work Act and the Competition and Consumer Act. The CFMEU had pleaded 'it does not know' in response to B.M.D.'s allegations concerning the attendance of CFMEU officials at a construction site. B.M.D. argued this was an abuse of process, claiming the information needed for a responsive plea was available to the CFMEU. The Federal Court (Meagher J) made orders striking out those paragraphs in February 2026.
Employers should ensure their pleadings are clear and specific when making allegations. If a union or other party pleads non-admissions without reasonable grounds, employers may have recourse to seek striking out of those paragraphs. However, be mindful that costs orders are limited by the Fair Work Act and courts will consider access to justice.
Employees and unions should ensure responses to allegations in legal proceedings are based on available information and not simply a default 'does not know' plea. Unions need to carefully assess their position before pleading non-admissions, as this could lead to costs being awarded against them.