2144 Broke Road v ACN 062 859 358 [2010] NSWSC 489

2144 Broke Road v ACN 062 859 358 [2010] NSWSC 489

Plaintiffs were entitled to recover cost of rectification and relocation as foreseeable damage from breach of contract; the assignment was valid and not champertous; leave to proceed against company in liquidation was appropriate; claim for loss of opportunity to lease was not recoverable as it was not within reasonable contemplation of parties at contract stage; prejudgment interest recoverable only from date of expenditure on rectification; indemnity costs awarded from date of valid offer of compromise.

Parties
First Plaintiff: 2144 Broke Road Pty Ltd; Second Plaintiff: Roche Group Pty Ltd; Third Plaintiff: Australian Vintage Ltd; Defendant: ACN 062 859 358 Pty Limited (Previously Austec Panel Systems Australia Pty Limited)
Jurisdiction
Australia
Judgment Date
17 May 2010
Procedural Posture
Building and Construction Contract Dispute / Final Judgment
Outcome
Judgment for the plaintiffs.
Legal Topics
Assignment of Cause of Action, Breach of Warranties, Damages for Rectification, Relocation Costs, Loss of Opportunity, Prejudgment Interest, Leave to Proceed Against Company in Liquidation, Calderbank Offer, Indemnity Costs
Building and Construction Corporations Procedure Assignment of Cause of Action Breach of Warranties Damages for Rectification Relocation Costs Loss of Opportunity +4 more

Case Brief

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Parties

2144 Broke Road Pty Ltd

First Plaintiff

Roche Group Pty Ltd

Second Plaintiff

Australian Vintage Ltd

Third Plaintiff

ACN 062 859 358 Pty Limited (Previously Austec Panel Systems Australia Pty Limited)

Defendant

Procedural Posture

Building and Construction Contract Dispute / Final Judgment

Legal Issues

  1. 1 Whether defendant breached express and implied warranties regarding insulated panels
  2. 2 Whether assignment of cause of action was valid and not champertous
  3. 3 Entitlement to damages for rectification and associated losses

Ratio Decidendi

Plaintiffs were entitled to recover cost of rectification and relocation as foreseeable damage from breach of contract; the assignment was valid and not champertous; leave to proceed against company in liquidation was appropriate; claim for loss of opportunity to lease was not recoverable as it was not within reasonable contemplation of parties at contract stage; prejudgment interest recoverable only from date of expenditure on rectification; indemnity costs awarded from date of valid offer of compromise.

Court Disposition

Judgment for the plaintiffs.

Orders

  • Direct entry of judgment for the plaintiffs against the defendant in the sum of $295,068.82 inclusive of interest up to the date of judgment.
  • Order the defendant to pay the plaintiffs' costs of the proceedings.