STATE RAIL AUTHORITY OF NEW SOUTH WALES v EARTHLINE CONSTRUCTIONS PTY LTD [1996] NSWCA 494

STATE RAIL AUTHORITY OF NEW SOUTH WALES v EARTHLINE CONSTRUCTIONS PTY LTD

SUPREME COURT OF NEW SOUTH WALES — COURT OF APPEAL

MAHONEY P, MEAGHER JA and HANDLEY JA 4-6 March, 20 December 1996

[1996] NSWCA 494

State Rail Authority (SRA) engages contractors for the hire of equipment for work in connection with railway lines in northern NSW — SRA claimed overpayment to contractors by mistake and instituted proceedings in Commercial Division of Supreme Court to recover overpayment — Trial judge makes order in favour of SRA for $178,000.

Appeal by SRA to Court of Appeal - Trial judge's findings on credibility of witnesses, former employees of SRA - Evidence of system of certifying hiring and work dockets - Inferences to be drawn from documentary evidence alone - Whether work paid for had been done - Whether proof of overpayment by mistake - Whether appeal court can disturb trial judge's findings of fact.

Held: appeal dismissed:

(i) The court on appeal should not set aside the conclusions of the trial judge as to the credibility of the witnesses. Thus the substantial basis of this part of the appellant's case fails.

(ii) Regarding the documentary analyses of the alleged fictitious work claims, subject to an error of calculation made by the trial judge in the money judgment entered for the SRA, the court is not persuaded to draw the inferences as to the falsity of the claims which SRA has suggested.

(iii) Except for the amount recovered in judgment, the SRA failed to make out a prima facie case that particular payments had been paid by mistake for work which had not been done.

Chambers v Jobling (1986) 7 NSWLR 1; Abalos v Australian Postal Commission (1990) 171 CLR 167; Devries v Australian National Railways Commission (1993) 177 CLR 472; Voulis v Kozary (1975) 180 CLR 177; Fabre v Arenales (1992) 27 NSWLR 437; applied.