Growthbuilt Pty Ltd v Modern Touch Marble & Granite Pty Ltd [2021] NSWSC 290

Supreme Court New South Wales

Medium Neutral Citation: Growthbuilt Pty Ltd v Modern Touch Marble & Granite Pty Ltd [2021] NSWSC 290 Hearing dates: 2 – 4 November 2020 Decision date: 26 March 2021 Jurisdiction: Equity - Technology and Construction List Before: Henry J Decision: 1. Judgment for the plaintiff against the first defendant in the sum of $1,126,119.79. 2. Judgment for the plaintiff against the second defendant in the sum of $886,395.60. 3. Parties to bring in short minutes with orders (including judgment) to be entered at a later date. Catchwords: CONTRACTS – implied terms – good faith – where subcontract provided for an extension of time regime including a power for the contractor to extend time "in its absolute discretion" and with "no obligation to extend, or to consider whether it should extend" – contractor not obliged to act reasonably with regard to the prevention principle or in good faith due to contractual scheme and language used CONTRACTS – remedies – liquidated damages – penalty – where residential building subcontract provided for delay damages at a rate of $3,500 per day – stipulated rate not penal in character Legislation Cited: Civil Procedure Act 2005 (NSW), s 56 Cases Cited: Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205; [2012] HCA 30 Arab Bank Australia Ltd v Sayde Developments Pty Ltd (2016) 93 NSWLR 231; [2016] NSWCA 328 Australian Mutual Provident Society v 400 St Kilda Road Pty Ltd [1991] 2 VR 417 Blatch v Archer (1774) 1 Cowp 63; 98 ER 969 Braganza v BP Shipping Ltd [2015] UKSC 17; [2015] 4 All ER 639 Champion Homes Sales Pty Ltd v DCT Projects Pty Ltd [2015] NSWSC 616 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 Dundee General Hospitals Board of Management v Walker [1952] 1 All ER 896 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Gerard Cassegrain & Co Pty Limited v Cassegrain (2013) 87 NSWLR 284; [2013] NSWCA 453 Grocon Constructions (Qld) Pty Ltd v Juniper Developer (No 2) Pty Ltd [2015] QCA 291 Hervey Bay (JV) Pty Ltd v Civil Mining and Constructions Pty Ltd [2008] QSC 58 Ho v Powell (2001) 51 NSWLR 572; [2001] NSWCA 168 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Macquarie International Health Clinic Pty Ltd v Sydney Local Health District (2020) 19 BPR 40,463; [2020] NSWCA 161 Manly Council v Byrne [2004] NSWCA 123 Mineralogy Pty Ltd v Sino Iron Pty Ltd (No 6) [2015] FCA 825; 329 ALR 1 Minister for Immigration and Border Protection v SZVFW (2018) 264 CLR 541; [2018] HCA 30 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Multiplex Constructions Pty Ltd v Abgarus Pty Ltd (1992) 33 NSWLR 504 Paciocco v Australia and New Zealand Banking Group Ltd (2016) 258 CLR 525; [2016] HCA 28 Paciocco v Australia New Zealand Banking Group (2015) 236 FCR 199; [2015] FCAFC 50 Peninsula Balmain Pty Ltd v Abigroup Contractors Pty Ltd [2002] NSWCA 211 Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd (2017) 95 NSWLR 82; [2017] NSWCA 151 RHG Mortgage Corporation Ltd v Iaani [2016] NSWCA 270 Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656; [2005] HCA 71 Socimer International Bank Ltd v Standard Bank London Ltd [2008] EWCA Civ 116 Spiers Earthworks Pty Ltd v Landtec Projects Corporation Pty Ltd (No 2) (2012) 287 ALR 360; [2012] WASCA 53 Stuart Pty Ltd v Feteni Pty Ltd [2004] NSWSC 237 Timwin Construction Pty Ltd v Façade Innovations Pty Ltd [2005] NSWSC 548 Turner Corporation Ltd (Receiver & Manager Appointed) v Austotel Pty Ltd (1997) 13 BCL 378 Vodafone Pacific Ltd v Mobile Innovations Ltd [2004] NSWCA 15 Woolworths v Ryder (2014) 87 NSWLR 593 Texts Cited: Hudsons Building and Engineering Contracts (14th ed, 2020, Thomson Reuters) Category: Principal judgment Parties: Growthbuilt Pty Ltd (Plaintiff/Cross-Defendant) Modern Touch Marble & Granite Pty Ltd (First Defendant/Cross-Claimant) Johnne Khouri (Second Defendant) Elizabeth Khouri (Third Defendant) Representation: Counsel: T Breakspear with M Keene (Plaintiff/Cross-Defendant) R Notley with N Simone (Defendants/Cross-Claimant)