ABB Engineering Construction Pty Limited v Abigroup Contractors Pty Limited [2003] NSWSC 665

New South Wales Supreme Court

CITATION : ABB Engineering Construction Pty Limited v Abigroup Contractors Pty Limited [2003] NSWSC 665 HEARING DATE(S) : 16/07/03, 17/07/03, 18/07/03, 21/07/03, 22/07/03, 24/07/03 JUDGMENT DATE : 30 July 2003

JURISDICTION: Equity Division Technology and Construction List JUDGMENT OF : Einstein J DECISION : Parties to bring in Short minutes of order. Costs to be argued

CATCHWORDS : Practice and Procedure - Part 72 reference - Application to adopt Referee's report - Application to set aside sections of the report - Principles applicable - Parties bound by conduct of litigation at trial or on reference - Contract - Formation of contract - Ongoing negotiations - Intention to contract - Masters v Cameron classes - Fourth Masters v Cameron class - Whether binding and enforceable subcontract formed between plaintiff and defendant - No formal signed agreement entered into by parties - Works partly completed when defendant claims repudiation of extant contract by plaintiff and purports to terminate such contract - Relevance of prior negotiation and subsequent contract - Objective determination of intention of parties - Admissibility of post contractual conduct - Whether parties arrived at consensus capable of forming a contract - Whether subsequent negotiations supports or mandates inference that parties did not intend to make concluded bargain - Restitution - Recovery on quantum meruit - Principles - Considerations to be taken into account in determination of amount which constitutes in the circumstances, fair and just compensation for benefit or 'enrichment' actually or constructively accepted - Remuneration - Whether calculated at a reasonable rate for work actually done or the fair market value of material supplied - Whether calculated as value to principal of works performed Arbitration Act 1902 Prescribed Progress Payment Act LEGISLATION CITED : Occupational Health & Safety Act Supreme Court Rules (NSW) Trade Practices Act 1974 Abigroup v Peninsula [2001] NSWSC 752 Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Allen v Carbone (1975) 132 CLR 528 Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd (2000) 22 WAR 101 Angelopoulos v Sabatino (1995) 65 SASR 1 Appleby v Johnson (1874) LR 9 CP 158 Astor Properties Pty Ltd v L'Union des Assurance de Paris (1989) 17 NSWLR 483 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Australian Development Corporation Pty Ltd v White Constructions (ACT) Pty Ltd (1996) 12 BCL 317 Ballas v Theophilos (No 2) (1957) 98 CLR 193 Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Ltd v G R. Securities Pty Ltd (1986) 40 NSWLR 622 Bolot v Capper (1957) 75 WN (NSW) 316 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Brenner v First Artists' Management Pty Ltd [1993] 2 VR 221 British Steel Corp v Cleveland Bridge and Engineering Co Ltd [1984] 1 All ER 504 Brunninghausen v Galvanics (1999) 46 NSWLR 538 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9147 Buckley v Bennell Design & Construction Pty Ltd (1978) 140 CLR 1 Buttrose v Versi (Rolfe J, 10 December 1990, unreported) Chloride Batteries of Australia Ltd v Glendale Chemical Products Pty Limited (1988) 17 NSWLR 60 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Coulton v Holcombe (1986) 162 CLR 1 Council of the City of Sydney v Woodward [2000] NSWCA 201 Cumnock No. 1 Colliery Pty Limited v Pacific Power [2002] NSWCA 278 FAI Traders Insurance Co Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Flender (Australia) Pty Ltd v Warman International Ltd [New South Wales Court of Appeal, 18 June 1998, unreported] Foxtel Management Pty Ltd v Seven Cable Television Pty Ltd (2000) 175 ALR 433 Franks v Berem Constructions Pty Ltd [New South Wales Court of Appeal, 2 December 1998, unreported] GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd [2003] FCA 50 Geebung Investments Pty Ltd v Varga Group Investments (No.8) Pty Ltd (1995) 7 BPR 14,551 Glover v Australian Ultra Concrete Floors Pty Ltd [2003] NSWCA 80 Godecke v Kirwan (1973) 129 CLR 629 Graham Evans Pty Ltd v Stencraft Pty Ltd (2000) 16 BCL 335 CASES CITED : G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Heysham Properties Pty Ltd v Action Motor Group Pty Ltd (1996) 14 BCL 145 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Homebush Abattoir Corporation v Bermria Pty Limited (1991) 22 NSWLR 605 Howard Smith & Co Ltd v Varawa (1907) 5 CLR 68 Inland Revenue Commissioners v Raphael [1935] AC 96 Integrated Computer Services Pty Ltd v Digital Equipment Corporation (Australia) Pty Ltd (1988) 5 BPR 11,110 Jennings Construction Limited v QH & M Birt Pty Ltd (Supreme Court of New South Wales, Cole J, 16 December 1998, unreported) John R Keith Pty Ltd v Multiplex Constructions (NSW) Pty Ltd [2002] NSWSC 43 LMI Australasia Pty Limited v Baulderstone Hornibrook Pty Limited [2003] NSWCA 74 Love & Stewart Ltd v S Instone & Co Ltd (1917) 33 TLR 475 Masters v Cameron (1954) 91 CLR 353 Najjar v Haines [(1991) BCL 145] Nowlan v Marson Transport Pty Ltd (2001) 53 NSWLR 116 Renard Constructions (M E) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Peabody Resources Limited v Allco Constructions Pty Ltd [Supreme Court of New South Wales, O'Keefe CJ, 14 March 1994, unreported] Peninsula Balmain Pty Ltd v Abigroup Contractors Pty Limited (appeal) Pobjie Agencies v Vinidex Tubemakers [2000] NSWCA 105 Raguz v Sullivan (2000) 50 NSWLR 236 Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 Rowe v Australian United Steam Navigation Company Limited (1909) 9 CLR 1 Ryan v Textile Clothing & Footwear Union [1996] 2 VR 235 Sabemo Pty Ltd v North Sydney Municipal Council [1977] 2 NSWLR 880 Sinclair Scott & Co Ltd v Naughton (1929) 43 CLR 310 Skinner & Edwards (Builders) Pty Ltd v Australian Telecommunications Corporation (1992) 27 NSWLR 567 Spencer's Pictures Limited v Cosens (1918) 18 SR (NSW) 102 Super Pty Limited v SJP Formwork (Aust) Pty Limited (1992) 29 NSWLR 549 Telstra Corporation Limited v Australis Media Holdings (1997) 24 ACSR 55 Tern Minerals NL v Kalbara Mining NL (1990) 3 WAR 486 Trentham (G Percy) Ltd v Archital Luxfer Ltd [1993] 1 Lloyd's Rep 25 University of Wollongong v Metwally (1984) 158 CLR 447 Walter Construction Group Limited v Walker Corporation Ltd (2001) 47 ATR 48 White Constructions (NT) Pty Ltd v Commonwealth (1990) 7 BCL 193 White v Overland [2001] FCA 1333 William Lacey (Hounslow) Ltd v Davis [1957] 2 All ER 712 PARTIES : ABB Engineering Construction Pty Limited (Plaintiff) Abigroup Contractors Pty Limited (Defendant) FILE NUMBER(S) : SC 55033/98 COUNSEL : Mr B Collins QC, Mr M Orlov (Plaintiff) Mr T Bathurst QC, Mr F Corsaro SC, Mr F Hicks (Defendant) SOLICITORS : Abbott Tout (Plaintiff) Clayton Utz (Defendant)