Advanced National Services Pty Ltd v Daintree Contractors Pty Ltd [2019] NSWCA 270

Advanced National Services Pty Ltd v Daintree Contractors Pty Ltd [2019] NSWCA 270

On the proper construction of the agreement, Advanced's obligation to perform the cleaning services could be discharged only by Advanced itself or through an assignee or subcontractor approved in writing by Daintree. Clause 4.5 prohibited unauthorised subcontracting and other provisions showed that the manner and conditions of performance were important protections for Daintree. Accordingly, Advanced had not earned the contract price for cleaning services performed by unauthorised subcontracted labour, and the appeal from rejection of that part of its liquidated claim failed.

Jurisdiction
Australia
Judgment Date
05 November 2019
Procedural Posture
Appeal From District Court of New South Wales Civil Decision / Court of Appeal Decision
Outcome
Appeal dismissed with costs.
Legal Topics
['discharge by Performance' 'termination of Contract' 'subcontracting Without Written Approval' 'personal Performance Obligations' 'contract Debt' 'costs']
['contract Law' 'civil Procedure'] ['discharge by Performance' 'termination of Contract' 'subcontracting Without Written Approval' 'personal Performance Obligations' 'contract Debt' 'costs']

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Procedural Posture

Appeal From District Court of New South Wales Civil Decision / Court of Appeal Decision

Legal Issues

  1. 1 ['Whether Advanced had performed the cleaning services so as to earn the whole liquidated sum claimed where approximately 90 per cent of the work was undertaken by unauthorised subcontractors.' 'Whether, if the contract price had been earned, cl 4.5 affected any accrued right to receive the contract price after Daintree validly terminated the agreement.']

Ratio Decidendi

On the proper construction of the agreement, Advanced's obligation to perform the cleaning services could be discharged only by Advanced itself or through an assignee or subcontractor approved in writing by Daintree. Clause 4.5 prohibited unauthorised subcontracting and other provisions showed that the manner and conditions of performance were important protections for Daintree. Accordingly, Advanced had not earned the contract price for cleaning services performed by unauthorised subcontracted labour, and the appeal from rejection of that part of its liquidated claim failed.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed.' "Appellant to pay the respondent's costs of the appeal."]