Rudas and Andrassy v Eid [2021] NSWCATAP 4

Rudas and Andrassy v Eid [2021] NSWCATAP 4

The Appeal Panel held that the engagement of other builders by the owners, together with the builder's awareness thereof through proceedings, witness statements, and pleadings, clearly amounted to acceptance of the builder's repudiation, thereby terminating the contract. The Tribunal erred in requiring proof that the builder knew of the owners' conduct immediately after the event. Damages should be awarded for actual costs incurred in completing and rectifying the works, as well as overpayments, after allowing credit for contract amounts and sums already paid.

Parties
First Appellant: Mate Rudas; Second Appellant: Boglorka Andrassy; Respondent: Pierre Eid
Jurisdiction
Australia
Judgment Date
08 January 2021
Procedural Posture
Appeal / Decision
Outcome
Appeal upheld. Orders below set aside. Respondent ordered to pay damages and costs.
Legal Topics
Repudiation of Contract, Termination by Acceptance of Repudiation, Damages for Incomplete Works, Costs Orders
Building and Construction Repudiation of Contract Termination by Acceptance of Repudiation Damages for Incomplete Works Costs Orders

Case Brief

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Parties

Mate Rudas

First Appellant

Boglorka Andrassy

Second Appellant

Pierre Eid

Respondent

Procedural Posture

Appeal / Decision

Legal Issues

  1. 1 Whether the owners terminated the building contract by accepting the repudiation of the builder
  2. 2 Whether the Tribunal erred in holding that the building contract remains on-foot
  3. 3 What order should be made for damages

Ratio Decidendi

The Appeal Panel held that the engagement of other builders by the owners, together with the builder's awareness thereof through proceedings, witness statements, and pleadings, clearly amounted to acceptance of the builder's repudiation, thereby terminating the contract. The Tribunal erred in requiring proof that the builder knew of the owners' conduct immediately after the event. Damages should be awarded for actual costs incurred in completing and rectifying the works, as well as overpayments, after allowing credit for contract amounts and sums already paid.

Court Disposition

Appeal upheld. Orders below set aside. Respondent ordered to pay damages and costs.

Orders

  • Leave to appeal is granted.
  • Appeal is upheld.