Heavy Plant Leasing Pty Ltd (In Liquidation) v McConnell Dowell Constructors (Aust) Pty Ltd (No 3) [2023] NSWSC 634

Heavy Plant Leasing Pty Ltd (In Liquidation) v McConnell Dowell Constructors (Aust) Pty Ltd (No 3) [2023] NSWSC 634

It is not open to HPL to contend that the whole settlement amount should be deducted. The proper deduction from MacDow's claim is only the agreed quantum for overlapping Overheads and Management claims, due to how the case was run and the evidentiary assessment. MacDow has not discharged its evidentiary onus to show the Fluor settlement payment was not received in compensation for Overheads and Management, so that element ($1,215,663.63) must be fully set off against MacDow's entitlement.

Parties
Plaintiff/cross Defendant: Heavy Plant Leasing Pty Ltd (In Liquidation); Defendant/cross Claimant: McConnell Dowell Constructors (Aust) Pty Ltd
Jurisdiction
Australia
Judgment Date
14 June 2023
Procedural Posture
Construction Contract Dispute / Consequential Orders Following Previous Judgment
Outcome
Orders issued
Legal Topics
Damages, Cost to Complete, Double Recovery, Settlement Deductions
Equity Construction Law Damages Cost to Complete Double Recovery Settlement Deductions

Case Brief

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Parties

Heavy Plant Leasing Pty Ltd (In Liquidation)

Plaintiff/cross Defendant

McConnell Dowell Constructors (Aust) Pty Ltd

Defendant/cross Claimant

Procedural Posture

Construction Contract Dispute / Consequential Orders Following Previous Judgment

Legal Issues

  1. 1 How settlement received by defendant from its principal is to be deducted from its claim against plaintiff for overheads and management
  2. 2 Whether the entire settlement amount should be deducted from defendant's claim or only a portion corresponding to overlapping claims

Ratio Decidendi

It is not open to HPL to contend that the whole settlement amount should be deducted. The proper deduction from MacDow's claim is only the agreed quantum for overlapping Overheads and Management claims, due to how the case was run and the evidentiary assessment. MacDow has not discharged its evidentiary onus to show the Fluor settlement payment was not received in compensation for Overheads and Management, so that element ($1,215,663.63) must be fully set off against MacDow's entitlement.

Court Disposition

Orders issued

Orders

  • Settlement received by defendant from principal (Fluor) must be fully deducted from defendant’s entitlement for Overheads and Management ($1,215,663.63) in its claim against Heavy Plant Leasing Pty Ltd (In Liquidation).