Anahita Adami and Mansoor Adami v Omid Tofighi t/as Sovereign Building Omid Tofighi t/as Sovereign Building v Anahita Adami and Mansoor Adami [2014] NSWCATCD 57

Anahita Adami and Mansoor Adami v Omid Tofighi t/as Sovereign Building Omid Tofighi t/as Sovereign Building v Anahita Adami and Mansoor Adami [2014] NSWCATCD 57

The Tribunal found that the parties were bound by the written fixed price labour and materials contract for $31,000.00, that the builder had no right to terminate and no revival or novation of the contract was established, and that the independent expert evidence proved defective and incomplete work. The homeowners were therefore entitled to compensation for the extra cost of completing and rectifying the works, and the builder's cross-claim failed.

Jurisdiction
Australia
Judgment Date
29 April 2014
Procedural Posture
Home Building Dispute Between Homeowners and Building Contractor / Principal Judgment After Hearing
Outcome
Homeowners' application allowed; builder's claim dismissed; costs awarded to the homeowners with the costs order stayed for 21 days for submissions.
Legal Topics
['residential Building Work' 'defective and Incomplete Works' 'termination of Building Contract' 'contract Damages' 'costs']
['home Building' 'contract Law' 'consumer Claims'] ['residential Building Work' 'defective and Incomplete Works' 'termination of Building Contract' 'contract Damages' 'costs']

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Procedural Posture

Home Building Dispute Between Homeowners and Building Contractor / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the builder wrongfully terminated or abandoned the contract and whether there was any subsequent revival or novation of the contract.' 'Whether the contract was a fixed price labour and materials contract or only a project management arrangement.' 'Whether the homeowners proved defective and incomplete works and the cost of rectification and completion.' "Whether the builder's claim for outstanding moneys and request to return to rectify defects should succeed." 'Whether costs should follow the event.']

Ratio Decidendi

The Tribunal found that the parties were bound by the written fixed price labour and materials contract for $31,000.00, that the builder had no right to terminate and no revival or novation of the contract was established, and that the independent expert evidence proved defective and incomplete work. The homeowners were therefore entitled to compensation for the extra cost of completing and rectifying the works, and the builder's cross-claim failed.

Court Disposition

Homeowners' application allowed; builder's claim dismissed; costs awarded to the homeowners with the costs order stayed for 21 days for submissions.

Orders

  • ['Omid Tofighi is to pay Anahita Adami and Mansoor Adami $93,852.12 immediately.' 'Claim of Omid Tofighi is dismissed.' 'Omid Tofighi is to pay the costs of Anahita Adami and Mansoor Adami as a agreed or assessed.' 'Order 3 stayed for 21 days from the date of publication of these reasons during which time the...