ET Constructions Pty Ltd v Brown [2006] NSWLC 24

ET Constructions Pty Ltd v Brown [2006] NSWLC 24

ET Constructions Pty Ltd failed to prove any contractual entitlement to the disputed claims apart from $790.29, because the contract did not support a contract negotiation fee, a margin on labour costs, payment for work after 17 December 2002, or speculative claims based on costs outside the contract period or unsubstantiated prime cost items. Mr Brown proved that ET Constructions Pty Ltd breached its contractual obligation to superintend the drainage works and that ET had overcharged him, so judgment was entered for Mr Brown on the plaintiff's claim and for Mr Brown on the cross-claim in the net sum of $28,790.

Jurisdiction
Australia
Judgment Date
24 April 2006
Procedural Posture
Civil / Judgment After Hearing of Plaintiff's Claim and Defendant's Cross Claim
Outcome
Verdict for the defendant Mr Brown on the plaintiff's claim; verdict for the cross-claimant Mr Brown on the cross-claim in the sum of $28,790; costs proposed to follow the event in a sum to be agreed or assessed, with liberty to apply.
Legal Topics
['building and Engineering Contracts' 'interpretation of Contract' 'project Management Fees' 'termination Fees' 'overcharging' 'superintendence of Construction Works' 'defective Drainage Works' 'cross Claim']
['contract Law' 'building and Construction Law' 'civil Procedure'] ['building and Engineering Contracts' 'interpretation of Contract' 'project Management Fees' 'termination Fees' 'overcharging' 'superintendence of Construction Works' 'defective Drainage Works' 'cross Claim']

Case Brief

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Procedural Posture

Civil / Judgment After Hearing of Plaintiff's Claim and Defendant's Cross Claim

Legal Issues

  1. 1 ['Whether ET Constructions Pty Ltd was entitled to unpaid invoice amounts including administration charges, contract negotiation fees, prime cost item margins, a five per cent fee on cost of works, and a termination or notice payment.' 'Whether ET Constructions Pty Ltd overcharged Mr Brown by adding a five per cent margin to labour and administration costs and by claiming amounts for administration and prime cost items.' 'Whether ET Constructions Pty Ltd breached the contract by failing adequately to supervise installation of the stormwater drainage system.' "What amount, if any, should be awarded on Mr Brown's cross-claim."]

Ratio Decidendi

ET Constructions Pty Ltd failed to prove any contractual entitlement to the disputed claims apart from $790.29, because the contract did not support a contract negotiation fee, a margin on labour costs, payment for work after 17 December 2002, or speculative claims based on costs outside the contract period or unsubstantiated prime cost items. Mr Brown proved that ET Constructions Pty Ltd breached its contractual obligation to superintend the drainage works and that ET had overcharged him, so judgment was entered for Mr Brown on the plaintiff's claim and for Mr Brown on the cross-claim in the net sum of $28,790.

Court Disposition

Verdict for the defendant Mr Brown on the plaintiff's claim; verdict for the cross-claimant Mr Brown on the cross-claim in the sum of $28,790; costs proposed to follow the event in a sum to be agreed or assessed, with liberty to apply.

Orders

  • ["In relation to the plaintiff's claim, verdict for the defendant Mr Brown and judgment accordingly." 'In relation to the cross-claim, verdict for the cross-claimant Mr Brown in the sum of $28,790 and judgment accordingly.' 'In relation to costs, the orders proposed are that the costs follow the event in a sum to be...