SEMF Pty Ltd v Renown Corporation Pty Ltd [2021] NSWSC 1547

SEMF Pty Ltd v Renown Corporation Pty Ltd [2021] NSWSC 1547

SEMF is entitled to damages calculated by reference to the reasonable costs of obtaining a system which met contractual specifications, which is best achieved by replacing the existing system at the estimated cost provided by SEMF’s expert. No deduction for betterment is required as this only restores SEMF to the position it would have been in absent the breach. Certain expenses incurred in attempting to rectify the system are recoverable. SEMF failed to prove entitlement to damages for employee time. Renown’s cross-claim for unpaid invoices is to be set off against SEMF’s claim.

Jurisdiction
Australia
Judgment Date
01 December 2021
Procedural Posture
Equity Commercial List / Principal Judgment
Outcome
Judgment for SEMF for damages subject to set-off of cross-claim; parties directed to bring in short minutes of order.
Legal Topics
['breach of Contract' 'damages for Breach' 'partial Performance' 'set Off' 'assessment of Damages' 'betterment' 'cross Claim' 'right to Damages']
['contracts' 'civil Procedure'] ['breach of Contract' 'damages for Breach' 'partial Performance' 'set Off' 'assessment of Damages' 'betterment' 'cross Claim' 'right to Damages']

Case Brief

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Procedural Posture

Equity Commercial List / Principal Judgment

Legal Issues

  1. 1 ['Whether SEMF is entitled to damages for alleged faults in the system supplied by Renown' 'Whether damages should be reduced for betterment' 'Whether claim for wasted employee time is recoverable' 'Whether Renown is entitled to amounts claimed in the cross-claim']

Ratio Decidendi

SEMF is entitled to damages calculated by reference to the reasonable costs of obtaining a system which met contractual specifications, which is best achieved by replacing the existing system at the estimated cost provided by SEMF’s expert. No deduction for betterment is required as this only restores SEMF to the position it would have been in absent the breach. Certain expenses incurred in attempting to rectify the system are recoverable. SEMF failed to prove entitlement to damages for employee time. Renown’s cross-claim for unpaid invoices is to be set off against SEMF’s claim.

Court Disposition

Judgment for SEMF for damages subject to set-off of cross-claim; parties directed to bring in short minutes of order.

Orders

  • ['Within 14 days, parties to bring in short minutes of order to give effect to judgment and any agreement on costs.' 'If no agreement, within 7 more days, parties to provide written submissions on orders and costs (max 5 pages).' 'Any outstanding matters to be determined on the papers.']