Sam Technology Communications Pty Ltd v Stowe Australia Pty Ltd [2007] NSWLC 12

Sam Technology Communications Pty Ltd v Stowe Australia Pty Ltd [2007] NSWLC 12

The purchase order and subsequent provision of contract documents established that Sam accepted a subcontract on a back-to-back basis with Stowe's Multiplex contract, including compliance with Multiplex's construction program. Sam failed to complete the intercom works by the required practical completion deadline and could not provide satisfactory assurance that the delayed handsets would arrive in time. Stowe was therefore contractually entitled to engage an alternative contractor, but Sam was still entitled to a verdict on its claim because Stowe admitted liability for some works and Sam had performed substantial intercom work; quantum for both claim and cross-claim remained unresolved.

Jurisdiction
Australia
Judgment Date
29 January 2007
Procedural Posture
Civil Contract Dispute Concerning Construction Subcontract Works / Reasons for Decision After Trial; Liability Determined and Quantum to Be Determined
Outcome
Verdict for the plaintiff on its claim, quantum to be determined. Verdict for the cross-claimant, quantum to be determined.
Legal Topics
['incorporation of Head Contract Terms Into Subcontract' 'back to Back Subcontract Obligations' 'practical Completion Deadlines' 'entitlement to Engage Alternative Contractor' 'quantum of Damages']
['contract Law' 'construction Law' 'damages'] ['incorporation of Head Contract Terms Into Subcontract' 'back to Back Subcontract Obligations' 'practical Completion Deadlines' 'entitlement to Engage Alternative Contractor' 'quantum of Damages']

Case Brief

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Procedural Posture

Civil Contract Dispute Concerning Construction Subcontract Works / Reasons for Decision After Trial; Liability Determined and Quantum to Be Determined

Legal Issues

  1. 1 ["Whether the contract between Sam and Stowe incorporated terms of Stowe's head contract with Multiplex on a back-to-back basis." 'Whether Sam was in breach by failing to complete, or prove it would complete, the security intercom system by the required practical completion deadline.' 'Whether Stowe was entitled to bring in another subcontractor to complete or assist in completing the intercom system.' "What quantum was payable on Sam's claim and Stowe's cross-claim."]

Ratio Decidendi

The purchase order and subsequent provision of contract documents established that Sam accepted a subcontract on a back-to-back basis with Stowe's Multiplex contract, including compliance with Multiplex's construction program. Sam failed to complete the intercom works by the required practical completion deadline and could not provide satisfactory assurance that the delayed handsets would arrive in time. Stowe was therefore contractually entitled to engage an alternative contractor, but Sam was still entitled to a verdict on its claim because Stowe admitted liability for some works and Sam had performed substantial intercom work; quantum for both claim and cross-claim remained unresolved.

Court Disposition

Verdict for the plaintiff on its claim, quantum to be determined. Verdict for the cross-claimant, quantum to be determined.

Orders

  • ['Verdict for the plaintiff on its claim. Quantum to be determined.' 'Verdict for cross-claimant. Quantum to be determined.' 'Within 14 days, the parties file either an agreed proposal for orders for the assessment of damages or, failing such an agreement, file and serve their proposals together with short written...