UGL Rail Pty Limited v Trox (Australia) Pty Limited [2017] NSWSC 770

UGL Rail Pty Limited v Trox (Australia) Pty Limited [2017] NSWSC 770

Although most attenuators supplied by Trox were defective and the Epping Road inlet attenuators were shown on the balance of probabilities not to have the required 20 year design life, UGLR failed to prove a breach concerning the Sirius Road outlet attenuators. UGLR was not a party to the Trox subcontract and clause...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
15 June 2017
Procedural Posture
Building and Construction and Contract Proceedings in the Equity Technology and Construction List / Principal Judgment After Final Hearing
Outcome
Proceedings dismissed with costs.
Legal Topics
['defective Sound Attenuators' 'design Life and Fitness for Purpose' 'contractual Rectification and Indemnity Clauses' 'assignment and Novation' 'agency and Ratification' 'trusts' 'damages for Defective Performance' 'limitation Defence' 'costs and Expenses Incurred by Related Companies']
['building and Construction' 'contract' 'equity'] ['defective Sound Attenuators' 'design Life and Fitness for Purpose' 'contractual Rectification and Indemnity Clauses' 'assignment and Novation' 'agency and Ratification' 'trusts' 'damages for Defective Performance' 'limitation Defence' 'costs and Expenses Incurred by Related Companies']

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Procedural Posture

Building and Construction and Contract Proceedings in the Equity Technology and Construction List / Principal Judgment After Final Hearing

Legal Issues

  1. 1 ['Whether sound attenuators designed and supplied by Trox for the Lane Cove Tunnel Project were defective and not fit for purpose or lacking a minimum 20 year design life.' 'Whether UGLR had rights under clause 19 of the Trox subcontract by reason of clause 29.4 of the Alstom sale agreement, ratification, assignment, agency or trust.' 'Whether UGLR effectively instructed Trox to repair, modify, replace or provide again defective attenuators under clause 19 of the Trox subcontract.' 'Whether Alstom or UGLR suffered or incurred recoverable loss, costs or expenses arising from rectification works.' 'Whether any assigned claims or limitation issues supported recovery by UGLR.']

Ratio Decidendi

Although most attenuators supplied by Trox were defective and the Epping Road inlet attenuators were shown on the balance of probabilities not to have the required 20 year design life, UGLR failed to prove a breach concerning the Sirius Road outlet attenuators. UGLR was not a party to the Trox subcontract and clause 29.4 of the Alstom sale agreement did not confer on UGLR a relevant agency or Alstom's clause 19 powers; there was no ratification, no trust and no relevant assignable claim. The notices relied on were ineffective for clause 19 purposes, Alstom suffered no compensable loss after selling the relevant business and contract benefits, and UGLR did not incur the rectification costs...

Court Disposition

Proceedings dismissed with costs.

Orders

  • ['Proceedings dismissed with costs.' 'The exhibits are to be returned.']