LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd [2023] NSWSC 590

LCM Operations Pty Ltd v Rabah Enterprises Pty Ltd [2023] NSWSC 590

The court found there was an oral contract whereby 316 Group acted as project manager for Rabah's property development and was entitled to charge a fee for construction services including an uplift, as evidenced by the BAS, tax returns, and financial statements of both companies, with Rabah agreeing to pay the $14.8 million fee and no valid contractual right of set-off established or supported by post-contractual conduct. Plaintiff was therefore entitled to judgment for the debt.

Jurisdiction
Australia
Judgment Date
02 June 2023
Procedural Posture
Civil—equity (commercial List) / Principal Judgment After Final Hearing
Outcome
Judgment for plaintiff. Defendant's set-off and joint venture defences dismissed.
Legal Topics
['project Management Agreements' 'debt Recovery' 'set Off' 'quantum Meruit' 'taxation and GST Treatment' 'company Financial Records and Accounting Evidence']
['contracts' 'restitution' 'equity—commercial'] ['project Management Agreements' 'debt Recovery' 'set Off' 'quantum Meruit' 'taxation and GST Treatment' 'company Financial Records and Accounting Evidence']

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 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Civil—equity (commercial List) / Principal Judgment After Final Hearing

Legal Issues

  1. 1 ["Did an agreement exist obliging Rabah Enterprises to pay 316 Group (now plaintiff's assignor) $14.8 million as a fee for project management and construction services?" 'Was Rabah entitled to set off alleged loans against the claimed debt?' 'Was there a joint venture or alternative entitlement to a share in net proceeds?' 'Was a quantum meruit (reasonable fee) claim available as an alternative?']

Ratio Decidendi

The court found there was an oral contract whereby 316 Group acted as project manager for Rabah's property development and was entitled to charge a fee for construction services including an uplift, as evidenced by the BAS, tax returns, and financial statements of both companies, with Rabah agreeing to pay the $14.8 million fee and no valid contractual right of set-off established or supported by post-contractual conduct. Plaintiff was therefore entitled to judgment for the debt.

Court Disposition

Judgment for plaintiff. Defendant's set-off and joint venture defences dismissed.

Orders

  • ['Judgment in the sum of $14,800,000, together with interest calculated in accordance with s 100 Civil Procedure Act 2005 (NSW).' 'Otherwise dismiss the Amended Summons.' 'Defendant to pay the plaintiff’s costs of the proceedings.' 'Plaintiff to provide a calculation of interest within seven days, amount of judgment...