K&J Vision Pty Ltd v Jows Construction Pty Ltd [2019] NSWCATAP 112

K&J Vision Pty Ltd v Jows Construction Pty Ltd [2019] NSWCATAP 112

The Tribunal erred in law by inadequately reasoning the method of damages assessment with respect to progress payment and subcontractor amounts; damages for breach of contract should be assessed appropriately per legal principles distinguishing expectation and reliance damages, and further findings are necessary.

Jurisdiction
Australia
Judgment Date
02 May 2019
Procedural Posture
Appeal / Appeal Panel Decision
Outcome
Orders below set aside; matter remitted for rehearing on damages and costs.
Legal Topics
['damages Assessment' 'repudiation' 'reliance Damages' 'expectation Damages' 'termination of Contract' 'progress Payments']
['contract Law' 'commercial Law' 'home Building'] ['damages Assessment' 'repudiation' 'reliance Damages' 'expectation Damages' 'termination of Contract' 'progress Payments']

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Procedural Posture

Appeal / Appeal Panel Decision

Legal Issues

  1. 1 ['Whether damages should be assessed on an expectation or reliance basis for breach of a home building contract' 'Whether progress claim payments are accrued rights surviving contract termination' 'Adequacy of reasons for damages assessment' 'Availability of reliance damages where expectation damages are quantifiable' 'Method of assessment for amounts paid to subcontractors']

Ratio Decidendi

The Tribunal erred in law by inadequately reasoning the method of damages assessment with respect to progress payment and subcontractor amounts; damages for breach of contract should be assessed appropriately per legal principles distinguishing expectation and reliance damages, and further findings are necessary.

Court Disposition

Orders below set aside; matter remitted for rehearing on damages and costs.

Orders

  • ['Grant leave to Appellant to rely on Amended Notice of Appeal, noting Grounds 1 and 5 are not pressed.' 'Set aside orders no 1, 2 and 3 below.' 'Remit matter to Tribunal differently constituted for rehearing, limited to assessment of damages for breach of contract by Owner and issue of costs, on basis of such...