P Ward v Civil and Civic [1999] NSWSC 727

New South Wales Supreme Court CITATION : P Ward v Civil and Civic [1999] NSWSC 727 CURRENT JURISDICTION : Equity Division, Construction List FILE NUMBER(S) : 55062/97 HEARING DATE(S) : 22,23,24,25,28,29,30 June 1999, 1 July 1999 JUDGMENT DATE : 3 August 1999

PARTIES : P. Ward Civil Engineering Pty Limited (Plaintiff) Lend Lease Property Services Pty Limited (formerly known as Civil and Civic Pty Limited) (Defendant) JUDGMENT OF : Einstein J

COUNSEL : B.W. Walker SC and S.A. Kerr (for Plaintiff) S.G. Finch SC and M.R. Gracie (Defendant) SOLICITORS : Tress Cocks & Maddox (Plaintiff) Freehill Hollingdale & Page (Defendant) CATCHWORDS : CONTRACT - Subcontract to perform earthworks for the construction of water filtration plant - Plaintiff tenderer invited to prepare a Target Guaranteed Maximum Price (TGMP) proposal and to participate in design development process - TGMP if acceptable to be confirmed as a lump sum Guaranteed Maximum Price (GMP) - Plaintiff accepts TGMP of $16.7M on 17 November 1993 - GMP contract for $16.7M executed 18 May 1994 - Whether plaintiff to bear risk of design development up to and/or after finalisation of GMP - Whether agreement entered into as at 17 November 1993 or as at 18 May 1994; CONTRACT - Construction - 'Variations' clause - 'Design Development' clause - Whether clause dealing with risk of design development to be read as relating to design development variations 'within' or 'without' scope of works.; TRADE PRACTICES - Misleading or deceptive conduct - Whether duty to disclose terms of contract where they differ from the pro forma contract included with invitation to tender - Silence as misleading or deceptive conduct; TRADE PRACTICES - Remedies - Variation - Rescission - Rectification; NEGLIGENCE - Partnering agreement - Relationship of trust and confidence - Whether defendant negligent in circumstances giving rise to execution of Subcontract - whether defendant required to draw plaintiff's attention to terms of Subcontract proferred for exeuction including scope of works to be included in Subcontract - Importance of treating a formal contract particularly in a commercial context as the final and full expression of agreement between the parties ; CONTRACT - Rescission - Rectification - Unilateral mistake - Whether mistaken belief of plaintiff that scope of works fixed at November 1993 agreement - Whether mistaken belief of plaintiff as to duration of period when it was exposed to risk of design development - Whether defendant aware of the plaintiff's mistake - Whether unconscionable for the defendant to insist on the terms of the contract - Carelessness of the plaintiff in failing to read the contract - Whether negligent misstatement; ESTOPPEL - Whether the defendant estopped from insisting on the terms of the contract. ACTS CITED : Trade Practices Act 1974 (Cth) ss52, 87(1), 87(2)(b) Agip S.p.A. v Navigazione Alta Italia S.p.A. [1984] 1 Lloyd's Rep 353 Asea Brown Boveri Pty Ltd v Burns Philp Trustee Co Ltd (Unreported, Supreme Court of NSW, 23 April 1990, Giles J) United Dominions Corporation Ltd v Brian Pty Ltd (1984-85) 157 CLR 1 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1981) 149 CLR 337 Commission for the New Towns v Cooper (Great Britain) Ltd [1995] Ch 259 Demagogue Pty Ltd v Ramensky & Anor (1993) ATPR 41-203 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 Frederick E Rose (London) Ltd v William Hernani Pim Junior & Co Ltd [1953] 2 QB 450 Jones v Dunkel (1959) 101 CLR 298 Kimberley NZI Finance Ltd v Torero Pty Ltd (1989) ATPR (Digest) 46-054 L'Estrange v F Graucob Ltd [1934] 2 KB 394 Lief Investments Pty Ltd v ConAgra International Fertiliser Co (Unreported, Supreme Court of NSW CA, 16 July 1998) Life Insurance Co of Australia Ltd v Phillips (1925) 36 CLR 60 CASES CITED : Mackenzie v Coulson (1869) LR 8 Eq 369 Maybury v Atlantic Union Oil Co Ltd (1953) 89 CLR 507 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1981-82) 149 CLR 191 Parker v South Eastern Railway Co (1877) 2 CPD 416 Prenn v Simmonds [1971] 1 WLR 1381 Pukallus v Cameron (1982) 43 ALR 243 Riverlate Properties Ltd v Paul [1975] Ch 133 A Roberts & Co Ltd v Leicestershire County Council [1961] Ch 555 Smith v Hughes (1871) LR 6 QB 597 Solle v Butcher [1950] 1 KB 671 Taylor v Johnson (1983) 151 CLR 422 The Olympic Pride [1980] 2 Lloyd's Rep 67 Thomas Bates & Son Ltd v Wyndham's (Lingerie) Ltd [1981] 1 WLR 505 Torrance v Bolton (1872) LR 8 Ch App 118 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 DECISION : Short Minutes of Order to be brought in.