Rathchime Pty Ltd v Willat; Willat v Rathchime [2016] NSWCATCD 74

Rathchime Pty Ltd v Willat; Willat v Rathchime [2016] NSWCATCD 74

The Tribunal found that the parties mutually abandoned the contract by July 2013 after an inordinate period in which the builder carried out no work and neither party acted under the contract to require performance or terminate. Because the contract had been abandoned, the homeowners were not entitled to completion costs, but they retained accrued rights for proven defects and statutory warranty breaches. The alleged oral cost savings agreement was not established. The builder was entitled to recover proven variations outside the contract scope on a quantum meruit basis. After setting off $37,130.50 owing to the homeowners for defects against $63,819.03 owing to the builder for...

Jurisdiction
Australia
Judgment Date
09 September 2016
Procedural Posture
Home Building Claims in the Consumer and Commercial Division of the Civil and Administrative Tribunal of New South Wales / Principal Judgment After Hearing
Outcome
The homeowners were ordered to pay the builder $26,688.53 immediately, with costs to be determined on the papers after submissions.
Legal Topics
['abandonment' 'repudiation' 'variations' 'defects' 'statutory Warranties' 'quantum Meruit' 'residential Building Works']
['home Building' 'contract Law' 'consumer and Commercial Law'] ['abandonment' 'repudiation' 'variations' 'defects' 'statutory Warranties' 'quantum Meruit' 'residential Building Works']

Case Brief

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Procedural Posture

Home Building Claims in the Consumer and Commercial Division of the Civil and Administrative Tribunal of New South Wales / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether the residential building contract came to an end, and if so whether by mutual abandonment, repudiation or termination.' 'Whether the homeowners were entitled to completion costs and damages for defective works.' 'Whether alleged defects breached statutory warranties under the Home Building Act 1989 (NSW).' 'Whether the alleged oral side agreement for cost savings existed and was enforceable.' 'Whether the builder could recover unpaid variations on a quantum meruit basis.']

Ratio Decidendi

The Tribunal found that the parties mutually abandoned the contract by July 2013 after an inordinate period in which the builder carried out no work and neither party acted under the contract to require performance or terminate. Because the contract had been abandoned, the homeowners were not entitled to completion costs, but they retained accrued rights for proven defects and statutory warranty breaches. The alleged oral cost savings agreement was not established. The builder was entitled to recover proven variations outside the contract scope on a quantum meruit basis. After setting off $37,130.50 owing to the homeowners for defects against $63,819.03 owing to the builder for...

Court Disposition

The homeowners were ordered to pay the builder $26,688.53 immediately, with costs to be determined on the papers after submissions.

Orders

  • ['The homeowners are to pay the builder the amount of $26,688.53 immediately.' 'The parties are to provide to the Tribunal and each other, either in person or by post, submissions and documents in relation to costs by 15 September 2016.' 'The parties are to provide to the Tribunal and each other, either in person or...