Mass Holdings Pty Limited v EPS Constructions Pty Limited [2015] NSWSC 217

Mass Holdings Pty Limited v EPS Constructions Pty Limited [2015] NSWSC 217

On an objective assessment of the parties' conduct up to 2 October 2009, a binding agreement had been reached between EPS and each venturer that EPS would charge a fixed price of $8,096,000 including GST to carry out the construction work. It was implicit that EPS was only entitled to $8,096,000 from the lump sum payable under its Housing NSW construction contract and had to pay each venturer their share of the difference. Mass should have received $1,161,433 from EPS but had received only $483,998.33, leaving $677,434.67 recoverable from EPS.

Jurisdiction
Australia
Judgment Date
13 March 2015
Procedural Posture
Contract Formation Dispute Concerning Building and Development Venture / Principal Judgment After Hearing
Outcome
Mass was entitled to recover $677,434.67 from EPS; EPS' cross-claim should be dismissed; parties were directed to bring in Short Minutes within 14 days.
Legal Topics
['contract Formation' 'oral Agreement' 'building Contract' 'joint Venture' 'fixed Price Construction Agreement' 'cross Claim']
['contract Law' 'equity'] ['contract Formation' 'oral Agreement' 'building Contract' 'joint Venture' 'fixed Price Construction Agreement' 'cross Claim']

Case Brief

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Procedural Posture

Contract Formation Dispute Concerning Building and Development Venture / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether a binding agreement was reached between EPS and the venturers that EPS would charge a fixed price of $8,096,000 to carry out the construction work for the proposed development.' 'Whether EPS was instead entitled to receive all reasonable construction and associated costs from Housing NSW progress payments, with any surplus distributed to the venturers after final construction costs were known.' 'Whether, if there was no agreement, payments made by EPS to the venturers were made by mistake and should be repaid.' "Whether EPS' cross-claim should be dismissed."]

Ratio Decidendi

On an objective assessment of the parties' conduct up to 2 October 2009, a binding agreement had been reached between EPS and each venturer that EPS would charge a fixed price of $8,096,000 including GST to carry out the construction work. It was implicit that EPS was only entitled to $8,096,000 from the lump sum payable under its Housing NSW construction contract and had to pay each venturer their share of the difference. Mass should have received $1,161,433 from EPS but had received only $483,998.33, leaving $677,434.67 recoverable from EPS.

Court Disposition

Mass was entitled to recover $677,434.67 from EPS; EPS' cross-claim should be dismissed; parties were directed to bring in Short Minutes within 14 days.

Orders

  • ['Mass is entitled to recover $677,434.67 from EPS.' "EPS' cross-claim should be dismissed." 'The parties are directed to bring in Short Minutes within 14 days to give effect to the reasons.']