Optus v Leighton & Ors [2002] NSWSC 327

New South Wales Supreme Court

CITATION : Optus v Leighton & Ors [2002] NSWSC 327 CURRENT JURISDICTION: Equity Division Construction List FILE NUMBER(S) : SC 55059/97 HEARING DATE(S) : 12/2/01-15/02/01; 20/02/01-22/02/01; 26/02/01-28/02/01; 5/03/01-8/03/01; 12/03/01-15/03/01; 19/03/01-22/03/01; 29/03/01; 2/04/01- 5/01/01; 9/04/01; 10/04/01; 23/04/01; 24/01/01; 30/04/01; 1/05/01; 14/05/01; 15/05/01; 28/05/01-31/05/01; 4/06/01-7/06/01; 12/06/01-14/06/01; 18/06/01-21/06/01; 25/06/01-28/06/01; 2/07/01-6/07/01; 6/07/01-12/07/01; 16/07/01; 17/07/01; 20/07/01; 23/07/01; 27/07/01; 30/07/01-1/08/01; 13/08/01; 19/10/01; 22/10/01-25/10/01 JUDGMENT DATE : 24 April 2002

First Plaintiff: Optus Networks Pty Limited Second Plaintiff: Optus Systems Pty Limited Fourth Plaintiff: Optus Vision Pty Limited Fifth Plaintiff: Optus Communications Pty Limited PARTIES : First Defendant: Leighton Contractors Pty Limited Second Defendant: Norman Disney & Young & Partners Pty Limited Third Defendant: Tyco Australia Pty Limited Sixth Cross-claimant: EMAE Pty Limited Fifth Cross-claimant: The WorkCover Authority of New South Wales JUDGMENT OF : Hunter J

Plaintiffs: P Greenwood SC; P Durack; S Climpson First Defendant: P Garling SC; R Pepper COUNSEL : Second Defendant: S Robb QC; G Ellis Third Defendant: N Hutley SC; J Lockhart Sixth Cross-claimant: G Downes QC; N Kidd Fifth Cross-claimant: S Donaldson SC Plaintiffs: Minter Ellison Lawyers First Defendant: Moray & Agnew SOLICITORS : Second Defendant: Colin Biggers & Paisley Third Defendant: Blake Dawson Waldron Sixth Cross-claimant: Allen Allen &Hemsley Fifth Cross-claimant: Phillips Fox CATCHWORDS : Contract - negligent performance of contract for fire suppressant system - accidental discharge of foreign matter from system - contamination of computer bank - liability of principal contractor - of subcontractors - professional negligence - liability of statutory authority in system testing - misleading conduct - negligent misrepresentation in certification of works - contributory negligence of principal - Damages - whether property damage or econmic loss - principles applicable - whether principle of betterment part of assessment of damages - whether benefits to principal in rectification work to be taken into account - onus of proof where issue of betterment raised - whether costs of rectification incremental - statutory contribution - contractual indemnity - liability in contribution of insolvent subcontractor - principles of apportionment. Boiler and Pressure Vessel Regulations 1942 (NSW) Factories, Shops And Industries Act 1962 (NSW) Law Reform (Miscellaneous Provisions) Act 1946 (NSW) LEGISLATION CITED : Law Reform (Miscellaneous Provisions) Act 1965 (NSW) Occupational Health and Safety Act 1983 (NSW) Trade Practices Act 1974 (Cth) WorkCover Administration Act 1989 (NSW) Astley v Austrust Ltd (1999) 197 CLR 1 British Westinghouse Electric and Manufacturing Company v Underground Electric Railways Company of London [1912] AC 673 Bryan v Maloney (1994 - 1995) 182 CLR 609 Bulk Materials (Coal handling) Pty Ltd v Compressed Air & Packaging Systems (NSW) Pty Ltd (1997) 14 BCL 109 Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520 Carslogie Steamship Co Ltd v Royal Norweigian Government [1952] AC 292 Cashfield House Ltd v David & Heather Sinclair Ltd [1995] 1 NZLR 452 Chaplin v Hicks[1911] 2 KB 786 Colonial Mutual Life Assurance Society Ltd v Producers and Citizens Co-operative Assurance Co. of Australia Ltd (1931) 46 CLR 41 Crimmins v Stevedoring Indurstry Finance Committee (1999 - 2000) 200 CLR 1 Daniels v Anderson [1995] 37 NSWLR 438 Fisher v C.H.T. Ltd (No. 2) [1966] 2 QB 475 Frankcom v Woods (NSWCA 1 October 1980 (unreported)) Hadley v Baxendale (1854) 9 Ex 341 Haines v Bendall (1991) 172 CLR 60 Harbutt's "Plasticine" Ltd v Wayne Tank and Pump Co. Ltd [1970] 1 QB 447 Hawkins v Clayton (1988) 164 CLR 539 Hill v Van Erp (1996 - 1997) 188 CLR 159 Hoad v Scone Motors Pty Ltd [1977] 1 NSWLR 88 Hodge and Another v Clifford Cowling & Co [1990] 46 EG 120 Hollis v Vabu Pty Ltd [2001] HCA 44 (9 August 2001) Hussey v Eels [1990] 2 QB 227 Hyder Consulting (Australia) Pty Ltd v Wilh Wilhelmsen Agency Pty Ltd [2001] NSWCA 313 IT walker Holdings Ltd v Tuf Shoes Ltd [1981] 2 NZLR 391 CASES CITED : J & B Caldwell Ltd v Logan House Retirement Home Ltd [1999] 2 NZLR 99 Johns v Prunell [1960] VR 208 Johnson v Perez (1988 - 1989) 166 CLR 351 Joyner v Weeks [1891] 2 QB 31 Lavarack v Woods of Colchester [1967] 1 QB 278 Modbury Triangle Shopping Centre Pty Ltd v Anzil (2000) 176 ALR 411 Monroe Schneider Associates Inc v No1 Raberem Pty Ltd (1991) 33 FCR 1 Murphy v Brown [1985] 1 NSWLR 131 Northern Sandblasting Pty Ltd v Harris 1996 - 1997) 188 CLR 313 NRMA Ltd v Morgan (1999) 31 ACSR 435 Pacific Associates Inc v Baxter [1990] 1 QB 993 Peake v Steriline Manufacturing Pty Limited (1988) Aust Torts Reports 80-154Performance Cars Ltd v Abraham [1962] 1 QB 33 Perre v Apand Pty Ltd (1991) 198 CLR 180 Pyrenees Shire Council v Day (1998) 192 CLR 330 Romeo v Conservation Commission (NT) (1998) 192 CLR 431 RW Miller & Co Pty Limited v Krupp (Australia) Pty Limited (1995) 11 BCL 74 Sea Containers Ltd v ICT Pty Ltd [1998] NSWSC 474 Simonious Vischer & Co v Holt Thompson [1979] 2 NSWLR 322 Sutherland Shire Council v Heyman (1985) 157 CLR 424 Taylor v Rover Co. Ltd [1966] 2 All ER 181 Tepko v Water Board [2001] HCA 19 (5 April 2001) The Habersham Grange [1905] P 307 Theiss Watkins White Construction Limited v The Commonwealth (1992) 14 BCL 61 Voli v Inglewood Shire Council (1962 - 1963) 110 CLR 74 Watts v Rake (1962) 108 CLR 158 DECISION : Judgment for first, second and fourth plaintiffs against first and third defendants - otherwise proceedings dismissed: judgment for cross-claimant under third cross-claim against second cross-defendant - otherwise cross-claims dismissed - save for seventh cross-claim. Final orders as to the seventh cross-claim, quantum and costs deferred pending presentation of short minutes by parties at time of publication of reasons.