Cessnock City Council v 123 259 932 Pty LtdCitation:[2024] HCA 17Before:Gageler CJ, Gordon, Edelman, Steward, Gleeson, Jagot, Beech-Jones JJDate:08 May 2024Case Number:S115/2023Read more

Cessnock City Council v 123 259 932 Pty LtdCitation:[2024] HCA 17Before:Gageler CJ, Gordon, Edelman, Steward, Gleeson, Jagot, Beech-Jones JJDate:08 May 2024Case Number:S115/2023Read more

The respondent is entitled to recover the wasted expenditure as damages because the expenditure was incurred in reliance on the appellant's performance, and the appellant's breach caused the expenditure to be wasted. The proper approach is to apply the presumption of recoupment, placing the onus on the defendant to show the expenditure would not have been recouped.

Parties
Appellant: Appellant; Respondent: Respondent
Jurisdiction
Australia
Judgment Date
08 May 2024
Procedural Posture
Civil Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Breach of Contract, Damages Assessment, Wasted Expenditure, Reliance Damages
Contract Law Damages Breach of Contract Damages Assessment Wasted Expenditure Reliance Damages

Case Brief

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Parties

Appellant

Appellant

Respondent

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the respondent is entitled to recover wasted expenditure incurred in anticipation of or reliance on the appellant's performance of a contractual obligation, where the appellant breached the contract and the expenditure was wasted.
  2. 2 What is the proper approach to the method of proof for a plaintiff to establish the position they would have been in if the contract had been performed, in the context of wasted expenditure due to breach.

Ratio Decidendi

The respondent is entitled to recover the wasted expenditure as damages because the expenditure was incurred in reliance on the appellant's performance, and the appellant's breach caused the expenditure to be wasted. The proper approach is to apply the presumption of recoupment, placing the onus on the defendant to show the expenditure would not have been recouped.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The appellant is to pay the respondent's costs.