Advanced Constructions Pty Ltd v Lainson Holdings Pty Ltd [2019] NSWSC 1484

Advanced Constructions Pty Ltd v Lainson Holdings Pty Ltd [2019] NSWSC 1484

The plaintiff validly terminated the contract for insolvency under clear contract terms, or, in the alternative, the contract was frustrated by sale of the site, and on either basis was entitled to the return of bank guarantees because the defendant neither accrued nor supported any right of recourse, and the contract required security to be returned following frustration or otherwise where no entitlement to call arises.

Jurisdiction
Australia
Judgment Date
22 July 2019
Procedural Posture
Contract Dispute (building and Construction) / Principal Judgment / Final Orders
Outcome
Plaintiff succeeded; judgment for the plaintiff.
Legal Topics
['termination of Contracts' 'frustration of Contracts' 'bank Guarantees' 'building and Construction Contracts']
['equity' 'construction Law' 'contract Law'] ['termination of Contracts' 'frustration of Contracts' 'bank Guarantees' 'building and Construction Contracts']

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Procedural Posture

Contract Dispute (building and Construction) / Principal Judgment / Final Orders

Legal Issues

  1. 1 ['Whether the plaintiff validly terminated the contract for insolvency and is entitled to the return of bank guarantees' 'Whether the contract was frustrated, entitling the plaintiff to return of security' 'Whether defendant complied with conditions entitling it to recourse to the bank guarantees']

Ratio Decidendi

The plaintiff validly terminated the contract for insolvency under clear contract terms, or, in the alternative, the contract was frustrated by sale of the site, and on either basis was entitled to the return of bank guarantees because the defendant neither accrued nor supported any right of recourse, and the contract required security to be returned following frustration or otherwise where no entitlement to call arises.

Court Disposition

Plaintiff succeeded; judgment for the plaintiff.

Orders

  • ['The Defendant is restrained from calling upon either of the Bank Guarantees and they are to be delivered up forthwith to the Plaintiff.' 'A declaration that the Plaintiff was entitled as at 20 March 2019 to return of any security given by the Plaintiff to the Defendant, including any instruments replacing that...