GERALD MULLANEY V TERENCE JOHN BROWN AND ANOR HC AK CIV 2008-404-6364

GERALD MULLANEY V TERENCE JOHN BROWN AND ANOR HC AK CIV 2008-404-6364

The term 'PC sum' in the building contract denotes a provisional estimate; the contract's maximum price was $333,750 including GST but is subject to adjustment for amounts exceeding the estimated PC sums; the appellant caused increases and by his conduct waived the right to insist on the fixed maximum price; the brochure was not incorporated into the contract; the District Court's orders and modest damages award were upheld.

Citation
openlaw-540f2a00_db46_4b39_860e_d5be338331d2.pdf
Parties
Appellant: Gerald Mullaney; First Respondent: Terence John Brown; Second Respondents: Power Painters Ltd & Ors
Court
High Court
Jurisdiction
New Zealand
Judgment Date
14 July 2009
Procedural Posture
Appeal From District Court (civil) / Judgment on Appeal
Outcome
Appeal dismissed
Legal Topics
Contract Interpretation, Implied Terms by Custom, Waiver, Parol Evidence Rule and Exceptions, PC Sums (provisional/prime Cost), Damages
Contract Law Construction Law Civil Procedure Property Law Contract Interpretation Implied Terms by Custom Waiver Parol Evidence Rule and Exceptions +2 more

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Parties

Gerald Mullaney

Appellant

Terence John Brown

First Respondent

Power Painters Ltd & Ors

Second Respondents

Procedural Posture

Appeal From District Court (civil) / Judgment on Appeal

Legal Issues

  1. 1 Meaning of 'PC sum' and effect on maximum contract price
  2. 2 Whether appellant waived contractual rights including reliance on fixed maximum price
  3. 3 Whether the brochure was incorporated into the contract

Ratio Decidendi

The term 'PC sum' in the building contract denotes a provisional estimate; the contract's maximum price was $333,750 including GST but is subject to adjustment for amounts exceeding the estimated PC sums; the appellant caused increases and by his conduct waived the right to insist on the fixed maximum price; the brochure was not incorporated into the contract; the District Court's orders and modest damages award were upheld.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • District Court orders upheld: payment of $61,657.81 to the second respondents