Repfix Industries Pty Ltd v FBD Group Pty Ltd [2020] NSWDC 514

Repfix Industries Pty Ltd v FBD Group Pty Ltd [2020] NSWDC 514

Repfix was not entitled to payment above estimated prices for the three contracts as no binding consensus was reached for cost plus arrangement or for payment beyond estimates; FBD did not establish entitlement to rectification costs for defective works because rectification was not reasonable in the circumstances and damages are to be nominal; FBD's cross-claim for overpayment failed since payment was not made by mistake and was voluntary.

Jurisdiction
Australia
Judgment Date
08 September 2020
Procedural Posture
Civil / Principal Judgment
Outcome
Repfix's claim for payment above estimated prices dismissed; FBD's cross-claim for rectification and overpayment dismissed; FBD awarded nominal damages for defective works.
Legal Topics
['payment Terms' 'fixed Price Contracts' 'costs Plus Contracts' 'rectification of Defective Works' 'damages' 'contractual Interpretation' 'quantum Meruit']
['contracts' 'building and Construction'] ['payment Terms' 'fixed Price Contracts' 'costs Plus Contracts' 'rectification of Defective Works' 'damages' 'contractual Interpretation' 'quantum Meruit']

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Procedural Posture

Civil / Principal Judgment

Legal Issues

  1. 1 ['Whether payment terms for three contracts were fixed price, cost plus, or subject to later agreement; Whether customer liable to pay more than estimates agreed; Whether works performed were defective; Whether rectification works were necessary or reasonable; Whether cross-claim for overpayment or defective works could succeed']

Ratio Decidendi

Repfix was not entitled to payment above estimated prices for the three contracts as no binding consensus was reached for cost plus arrangement or for payment beyond estimates; FBD did not establish entitlement to rectification costs for defective works because rectification was not reasonable in the circumstances and damages are to be nominal; FBD's cross-claim for overpayment failed since payment was not made by mistake and was voluntary.

Court Disposition

Repfix's claim for payment above estimated prices dismissed; FBD's cross-claim for rectification and overpayment dismissed; FBD awarded nominal damages for defective works.

Orders

  • ['Plaintiff/cross-defendant to bring in short minutes of order disposing of the proceeding and costs within 14 days; Orders to be made on the papers unless parties have dispute about costs; FBD awarded nominal damages of $100 for each contract (T1 and T2 works) for defective works performed by Repfix.']