Cleve Smith Excavations Pty Ltd v Hodgson [2010] NSWDC 230

Cleve Smith Excavations Pty Ltd v Hodgson [2010] NSWDC 230

The plaintiff was entitled to unpaid rent with compound interest and the balance of lease legal fees, but failed to prove quantifiable damages for plant and equipment maintenance and failed on rehabilitation because mining operations had not ceased and the claimed obligation and quantum were not established. The defendant succeeded on the cross-claim because the plaintiff unreasonably and deliberately withheld consent to mine areas within the existing quarry footprint, breaching quiet enjoyment and causing proven economic loss, and clause 9.7 was construed as referring to Mr Hodgson for the outstanding legal costs contribution.

Jurisdiction
Australia
Judgment Date
13 October 2010
Procedural Posture
Civil Claim and Cross Claim Concerning Lease of Quarry, Breach of Contract and Damages / Judgment After 10 Day Hearing; Interim Orders Made With Set Off, Interest and Costs Deferred
Outcome
Plaintiff succeeded in part on its claim for $108,148.76; defendant/cross-claimant succeeded in part on the cross-claim for $126,743; set-off, final judgment, interest and costs were deferred.
Legal Topics
['quarry Lease' 'unpaid Rent and Compound Interest' 'maintenance of Buildings, Plant and Equipment' 'rehabilitation of Land' 'quiet Enjoyment' 'unreasonable Withholding of Consent to Mine' 'exclusion Clauses' 'construction of Lease and Mistaken Party Description' 'legal Costs Contribution']
['leases' 'contract Law' 'damages' 'civil Procedure' 'environmental Planning'] ['quarry Lease' 'unpaid Rent and Compound Interest' 'maintenance of Buildings, Plant and Equipment' 'rehabilitation of Land' 'quiet Enjoyment' 'unreasonable Withholding of Consent to Mine' 'exclusion Clauses' 'construction of Lease and Mistaken Party Description' 'legal Costs Contribution']

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Procedural Posture

Civil Claim and Cross Claim Concerning Lease of Quarry, Breach of Contract and Damages / Judgment After 10 Day Hearing; Interim Orders Made With Set Off, Interest and Costs Deferred

Legal Issues

  1. 1 ['The quantum of rent and interest under the lease remaining owing by Mr Hodgson to the plaintiff.' 'Whether Mr Hodgson breached the lease by failing to maintain buildings, plant and equipment in good repair, and any damages and interest.' 'Whether Mr Hodgson breached the lease by failing to rehabilitate the land at the conclusion of mining operations, and any damages and interest.' 'Whether Mr Hodgson was liable as guarantor for legal fees incurred in respect of the agreement for lease.' 'Whether the plaintiff was in breach of the lease because of sub-standard wiring, and any repair loss and interest.' "Whether the plaintiff breached the lease by failing to consent to mining the Stockpile Area and Bench Area, and the measure of Mr Hodgson's losses and interest." 'Whether the plaintiff was liable for $23,000 in legal costs under clause 9.7 of the agreement for lease.']

Ratio Decidendi

The plaintiff was entitled to unpaid rent with compound interest and the balance of lease legal fees, but failed to prove quantifiable damages for plant and equipment maintenance and failed on rehabilitation because mining operations had not ceased and the claimed obligation and quantum were not established. The defendant succeeded on the cross-claim because the plaintiff unreasonably and deliberately withheld consent to mine areas within the existing quarry footprint, breaching quiet enjoyment and causing proven economic loss, and clause 9.7 was construed as referring to Mr Hodgson for the outstanding legal costs contribution.

Court Disposition

Plaintiff succeeded in part on its claim for $108,148.76; defendant/cross-claimant succeeded in part on the cross-claim for $126,743; set-off, final judgment, interest and costs were deferred.

Orders

  • ["Verdict for the plaintiff on the plaintiff's claim against the defendant in the sum of $108,148.76." 'Verdict and judgment for the defendant/cross claimant on the cross claim against the plaintiff in the sum of $126,743.' "The set-off of the respective claims and entry of final judgment is deferred pending the...