Firedam Civil Engineering Pty Ltd v Shoalhaven City Council [2010] NSWCA 59

Firedam Civil Engineering Pty Ltd v Shoalhaven City Council [2010] NSWCA 59

The expert failed to comply with the contractually required obligation to give reasons for his determination, as evidenced by critical internal inconsistencies and the inability of the parties to discern the basis for rejection of claims; as a result, the expert determination fell outside the contract and is not binding.

Parties
Appellant: Firedam Civil Engineering Pty Ltd; Respondent: Shoalhaven City Council
Jurisdiction
Australia
Judgment Date
19 April 2010
Procedural Posture
Appeal / Judgment on Appeal From Supreme Court, NSW
Outcome
Appeal allowed
Legal Topics
Expert Determination, Contracts—building Contracts, Adequacy of Reasons, Extension of Time, Delay Costs
Contract Law Building and Construction Law Expert Determination Contracts—building Contracts Adequacy of Reasons Extension of Time Delay Costs

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 15 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Firedam Civil Engineering Pty Ltd

Appellant

Shoalhaven City Council

Respondent

Procedural Posture

Appeal / Judgment on Appeal From Supreme Court, NSW

Legal Issues

  1. 1 Whether the expert determination was binding under the contract given the reasons provided
  2. 2 Whether the expert provided adequate reasons for rejecting certain claims
  3. 3 Whether internal inconsistencies in expert's reasons rendered determination invalid

Ratio Decidendi

The expert failed to comply with the contractually required obligation to give reasons for his determination, as evidenced by critical internal inconsistencies and the inability of the parties to discern the basis for rejection of claims; as a result, the expert determination fell outside the contract and is not binding.

Court Disposition

Appeal allowed

Orders

  • Orders at first instance set aside
  • Declaration that the Expert Determination of Mr Neil Turner dated 6 February 2009 is not binding on the parties