Synergy Group Services Pty Ltd v The Owners Strata Plan No. 90607 & Anor [2021] NSWDC 636

Synergy Group Services Pty Ltd v The Owners Strata Plan No. 90607 & Anor [2021] NSWDC 636

The defendants' continual non-payment of invoices exceeding $50,000, without any valid reason and despite demands, manifested unwillingness to perform the fundamental payment obligation under the Agreement. That conduct amounted to repudiation, which Synergy accepted by its solicitors' letters dated 30 October 2020,...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
26 November 2021
Procedural Posture
Civil Contract Claim for Unpaid Invoices, Interest and Consequential Damages Arising From Termination of a Management Services Agreement / Principal Judgment After Hearing
Outcome
Judgment for the plaintiff against the defendants for $7,552.94; costs reserved.
Legal Topics
['commercial Cleaning and Maintenance Services Agreement' 'non Payment of Invoices' 'common Law Repudiation' 'acceptance of Repudiation' 'contractual Termination Clause' 'expectation Damages' 'loss of Profits' 'interest']
['contract Law' 'damages'] ['commercial Cleaning and Maintenance Services Agreement' 'non Payment of Invoices' 'common Law Repudiation' 'acceptance of Repudiation' 'contractual Termination Clause' 'expectation Damages' 'loss of Profits' 'interest']

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Procedural Posture

Civil Contract Claim for Unpaid Invoices, Interest and Consequential Damages Arising From Termination of a Management Services Agreement / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether the defendants' continued non-payment of invoices amounted to repudiation of the Agreement." "Whether Synergy validly terminated the Agreement by accepting the defendants' repudiation in letters dated 30 October 2020." 'Whether Synergy terminated, or could rely on termination, pursuant to cl 16.5 of the Agreement.' 'Whether cl 16.5.3 entitled Synergy to payment for Fixed Services for the unexpired balance of the term.' 'Whether Synergy proved consequential loss by way of expectation damages or loss of profits.']

Ratio Decidendi

The defendants' continual non-payment of invoices exceeding $50,000, without any valid reason and despite demands, manifested unwillingness to perform the fundamental payment obligation under the Agreement. That conduct amounted to repudiation, which Synergy accepted by its solicitors' letters dated 30 October 2020, terminating the Agreement at common law. Synergy did not plead or exercise termination under cl 16.5, and cl 16.5.3 applied only to a valid termination under cl 16.5.1, not to common law termination by acceptance of repudiation. Because Synergy sought the notional invoice value for the balance of the term rather than proving saved expenses, diversion of resources, net profit...

Court Disposition

Judgment for the plaintiff against the defendants for $7,552.94; costs reserved.

Orders

  • ['Judgment for the plaintiff against the defendants for $7,552.94.' "Reserve the question of costs of the proceedings, including the costs of the plaintiff's Notice of Motion filed on 10 September 2021."]