Aust Tech Engineering & Supplies Pty Ltd v AGM Construction Pty Ltd [2019] NSWDC 133

Aust Tech Engineering & Supplies Pty Ltd v AGM Construction Pty Ltd [2019] NSWDC 133

The contract did not impose an absolute obligation on the project manager to guarantee no cost overruns, and the evidence and pleadings did not establish that the plaintiff abandoned, waived, or varied its entitlement to payment; none of the defences or cross-claim grounds was made out, so the plaintiff was entitled to judgment for the unpaid fee (and interest), and the cross-claim was dismissed.

Jurisdiction
Australia
Judgment Date
17 April 2019
Procedural Posture
Civil / Principal Judgment Following Trial of Claim and Cross Claim
Outcome
Judgment for the plaintiff; cross-claim dismissed
Legal Topics
['project Management Agreement' 'unpaid Fees' 'alleged Breach of Contract' 'construction of Obligation to Ensure No Cost Overruns' 'abandonment or Waiver of Debt' 'variation of Contract']
['contracts'] ['project Management Agreement' 'unpaid Fees' 'alleged Breach of Contract' 'construction of Obligation to Ensure No Cost Overruns' 'abandonment or Waiver of Debt' 'variation of Contract']

Case Brief

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Procedural Posture

Civil / Principal Judgment Following Trial of Claim and Cross Claim

Legal Issues

  1. 1 ['What were the relevant terms of the project management contract?' 'Was the plaintiff entitled to the unpaid invoice?' 'Did any conduct disentitle the plaintiff to payment?' 'Was the plaintiff in breach of contract (including in respect of cost overruns, alleged information withholding, or non-compliance with systems)?' 'Was there an enforceable variation, abandonment, or waiver of claim for further money by the plaintiff?' 'Was the cross-claim for damages against the plaintiff made out?']

Ratio Decidendi

The contract did not impose an absolute obligation on the project manager to guarantee no cost overruns, and the evidence and pleadings did not establish that the plaintiff abandoned, waived, or varied its entitlement to payment; none of the defences or cross-claim grounds was made out, so the plaintiff was entitled to judgment for the unpaid fee (and interest), and the cross-claim was dismissed.

Court Disposition

Judgment for the plaintiff; cross-claim dismissed

Orders

  • ['Judgment for the plaintiff for $55,176.48 (including interest)' "The defendant is to pay the plaintiff's costs." "The Second Amended Cross-Claim is dismissed and the cross-claimant is to pay the first cross-claimant's costs of the cross-claim." 'Liberty to apply for any contrary order within 10 days.']