Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No. 2) [2009] NSWSC 629

Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No. 2) [2009] NSWSC 629

Macquarie was in breach by failing to complete the car park and other ancillary works by the due date, which constituted default under the relevant agreements. Accordingly, Area Health's rights to payment under cl 3.5 of the construction deed and for damages/indemnity had accrued unconditionally prior to termination, and Area Health was entitled to judgment for those sums. Claims based on the car park not meeting cl 2.2 car space requirements failed as the precondition (car park 'erected') was not met prior to termination. Macquarie was not entitled to a refund or restitution for improvements or advance rent as no such right arose under the contract or at law in the circumstances of this...

Parties
Plaintiff/cross Defendant: Macquarie International Health Clinic Pty Ltd; Defendant/cross Claimant: Sydney South West Area Health Service
Jurisdiction
Australia
Judgment Date
07 July 2009
Procedural Posture
Cross Claim / Final Judgment on Liability and Quantum Except Interest/costs
Outcome
Judgment for Sydney South West Area Health Service on cl 3.5 of the construction deed and on the bulk of damages under its cross-claim, judgment for Macquarie on Area Health's claim under cl 2.2 of the car park lease, judgment against Macquarie on its claim for repayment under cl 2.1 of the hospital lease. Interest...
Legal Topics
Agreements to Lease, Termination of Contract, Damages for Breach, Restitution, Construction of Leases, Default Under Lease, Obligations to Complete Works, Indemnities
Contract Law Property Law Real Estate Law Agreements to Lease Termination of Contract Damages for Breach Restitution Construction of Leases +3 more

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Parties

Macquarie International Health Clinic Pty Ltd

Plaintiff/cross Defendant

Sydney South West Area Health Service

Defendant/cross Claimant

Procedural Posture

Cross Claim / Final Judgment on Liability and Quantum Except Interest/costs

Legal Issues

  1. 1 Whether Macquarie was liable to pay the amounts claimed under cl 3.5 of the construction deed for delayed completion of the car park; Whether Macquarie was liable under cl 2.2 of the car park lease for a shortfall in car spaces; Whether Macquarie was liable for damages for costs incurred by Area Health to complete and rectify works due to Macquarie's defaults; Whether Area Health was obliged to refund any rent or capital expenditure to Macquarie on termination; Whether contractual or restitutionary grounds supported Macquarie's claims for repayment.

Ratio Decidendi

Macquarie was in breach by failing to complete the car park and other ancillary works by the due date, which constituted default under the relevant agreements. Accordingly, Area Health's rights to payment under cl 3.5 of the construction deed and for damages/indemnity had accrued unconditionally prior to termination, and Area Health was entitled to judgment for those sums. Claims based on the car park not meeting cl 2.2 car space requirements failed as the precondition (car park 'erected') was not met prior to termination. Macquarie was not entitled to a refund or restitution for improvements or advance rent as no such right arose under the contract or at law in the circumstances of this...

Court Disposition

Judgment for Sydney South West Area Health Service on cl 3.5 of the construction deed and on the bulk of damages under its cross-claim, judgment for Macquarie on Area Health's claim under cl 2.2 of the car park lease, judgment against Macquarie on its claim for repayment under cl 2.1 of the hospital lease. Interest...

Orders

  • Macquarie is liable to pay Area Health the sum of $33,000 per month from 1 July 1999 to 17 March 2000, plus interest.
  • Macquarie is liable to pay Area Health damages totalling $802,909.74, plus interest.