Beckhaus v Brewarrina No 2 [2004] NSWSC 1160

New South Wales Supreme Court

CITATION : Beckhaus v Brewarrina No 2 [2004] NSWSC 1160 HEARING DATE(S) : 28/10/04 JUDGMENT DATE : 7 December 2004 JURISDICTION: Technology & Construction List JUDGMENT OF : Master Macready at 1 DECISION : Refuse leave to amend to plead a claim for liquidated damages. Conclusions on variation 21, interest and costs.

CATCHWORDS : Building and Construction – Liquidated damages – Whether defendant entitled to liquidated damages under the contract in circumstances where plaintiff did not achieve practical completion - Whether leave should be allowed for claim for liquidated damages - Held - Entitlement to liquidated damages will only arise following upon some other facts which lead to a termination of the contract after the present time - Leave to plead any claim for liquidated damages refused - Whether plaintiff entitled to Variation 21 – Held - Plaintiff entitled to variation - Interest – Pursuant to clause 42.9 of the general conditions the plaintiff is entitled to interest on overdue moneys at "Commercial Bank Rates" - Interest to be calculated from 10 May 2002 - Defendant to be given credit for interest earned by the plaintiff on the sum of $702,678.45 paid to the plaintiff on 18 November 2002 - Costs – Held - No disentitling conduct. Cross-claimant to pay costs of the cross-defendants. LEGISLATION CITED : Building and Construction Industry Security of Payment Act 1999 DTR Nominees Pty Limited v Mona Homes Pty Limited (1978) 138 CLR 423 Keating on Building Contracts (6 Edn.), p255 CIC Insurance Limited v Bankstown Football Club Limited (19950 8 ANZ Ins Cas 61-232 at 75, 558 Australian Stratacore Holdings Ltd (in Liq) v Sanwa Australia Securities Ltd (Court of Appeal, unreported, 27 May 1994 Wallera Pty Ltd v CGM Investments Pty Ltd [2003] FCAFC 279 at [2]; Kiefel J at [40] Toll (FGCT) Pty Ltd v Alphapharm Pty Lth [2004] HCA 52 at [40] Marminta Pty Ltd v French [2003] QCA 541 at [22] Fitzgerald v Masters (1956) 95 CLR 434 Hudson, Building and Engineering Contracts (11th edition) page 1157 Taylor Corporation Limited v Coordinated Industries Pty Ltd 1995 11 BCL 202 Turner Corporation Limited v Austotel Pty Ltd 1997 13 BCL 378 Gaymark Investments Pty Ltd v Walter Construction Group Ltd 2000 16 BCL 449 CASES CITED : Abigroup Contractors Pty Ltd v Peninsula Balmain Pty Ltd (2002) 18 BCL 15 MacMahon Constructions Pty Ltd v Crestwood Estates [1971] WAR 162 Holme v Guppy [1838] 3 M&W 387; 105 ER 1195 Parle v Leistikow [1883] 4 LR (NSW) 84 Cole v Director-General of Department of Youth and Community Services (1986) 7 NSWLR 541 at 549 Abignano Ltd v Electricity Commission of New South Wales (1986) 3 BCL 290 at 297 Multiplex Constructions Pty Ltd v Luikens [2003] NSWSC 1140 at [96] Brodyn Pty Limited t/as Time Cost and Quality (ACN 001 998 830) v Philip Davenport & Ors [2003] NSWSC 1019 at [14] Mills v Meeking (1990) 169 CLR 214 at 235 Blue Chip Pty Ltd v Concrete Constructions Group Pty Ltd (1997) 13 BCL 31 Merritt Cairns Construction Pty Ltd v Wulguru Heights (1995) 2 Qd.521 Algons Engineering Pty Ltd v Abigroup Pty Ltd (1997) 14 BCL 215 Oschlack v Richmond River Council (1998) 193 CLR White Property Developments [1998]1422 FCA TV Shopping Network Ltd v Scutt 43 IPR 451 PARTIES : Beckhaus Civil Pty Ltd v Brewarrina Shire Council FILE NUMBER(S) : SC 55025/02 COUNSEL : M. Rudge SC & D. Robertson for plaintiff M. Christie & V. Culkoff for defendant SOLICITORS : Dutton Lawyers for plaintiff Paul Ward-Harvey for defendant