Torrens Aloha P/L v San Modern Painting P/L [2001] NSWSC 227

(2001) 19 ACLC 755 Reported Decision : (2001) 17 BCL 443 [2001] NSWSC 227 [2001] ACL Rep 120 NSW 33

New South Wales Supreme Court

CITATION : Torrens Aloha P/L v San Modern Painting P/L [2001] NSWSC 227 revised - 6/04/2001 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4246/00 HEARING DATE(S) : 27/03/01, 28/03/01 JUDGMENT DATE : 27 March 2001

PARTIES : TORRENS ALOHA PTY LTD (ACN 002 005 370) (Plaintiff) SAN MODERN PAINTING PTY LTD (ACN 093 396 617) (Defendant) JUDGMENT OF : Santow J

COUNSEL : M R Gracie (Plaintiff) T D Castle (Defendant) SOLICITORS : Roxburgh & Co (Plaintiff) David Begg & Associates (Defendant) CATCHWORDS : CORPORATIONS — Application to set aside statutory demand payments under painting subcontract — Whether capable of constituting debt presently due and owing when defects later claimed to be found — Offsetting claim can be unliquidated so long as genuine i.e. not dishonest or colourable — But cannot be an offsetting claim for more than nominal amount of $1 unless damage reasonably ascertainable — Scope for construing contract and considering undenied facts in concluding claim for liquidated damages spurious. LEGISLATION CITED : Corporations Law s459H Banbury v Daniel (1884) 54 LJ Ch 265 Besser Industries (NT) Pty Ltd v Steelcon Constructions Pty Ltd (1995) 16 ACSR 596 Chalet Homes Pty Ltd v Kelly [1978] Qd R 389 Crowshaw v Pritchard and Renwick (1899) 16 TLR 45 Dawnays Ltd v FG Minter Ltd and Trollope & Colls Ltd [1971] 1 WLR 1205 Egan v State Transport Authority (1982) 31 SASR 481 Earnshaw v Gorman Sons Pty Ltd ([2001] WASCA 50, 28 February 2001, unreported (Full Court)) Eyota Pty Ltd v Hanave Pty Ltd (1994) 12 ACLC 669 CASES CITED : Gold Coast Oil Co Pty Ltd v Lee Properties Pty Ltd (1984) 1 BCL 63 at 66 Jesseron Holdings Pty Ltd v Middle East Trading Consultants Pty Ltd (No. 1) (1994) 13 ACSR 455 Jesseron Holdings Pty Ltd v Middle East Trading Consultants Pty Ltd (No. 2) (1994) 12 ACLC 490 Ownit Homes Pty Ltd v Batchelor [1983] 2 Qd R 124 Rothwells Ltd v Nommack (No. 100) Pty Ltd (1988) 6 ACLC 1,199 Re Sanders Constructions Pty Ltd [1969] Qd R 29 Tharsis Sulphur & Copper Co v M'Elroy & Sons (1878) 3 App Cas 1040 The Tergeste [1903] P 26 Dunedin Water Works Co v Bassett (1868) 1 NZCA 141 DECISION : Statutory Damand substantiated in part.