Abigroup Contractors Pty Ltd v ABB Service Pty Ltd (formerly ABB Engineering Construction Pty Ltd) [2004] NSWCA 181

New South Wales Court of Appeal

CITATION : Abigroup Contractors Pty Ltd v ABB Service Pty Ltd (formerly ABB Engineering Construction Pty Ltd) [2004] NSWCA 181 HEARING DATE(S) : 10,11,12,13 May 2004 JUDGMENT DATE : 15 June 2004

JUDGMENT OF : Giles JA at 1; Tobias JA at 187; Cripps AJA at 188 DECISION : In the proceedings below, dismiss the cross-claim. In the appeal, appeal dismissed with costs.

CATCHWORDS : CONTRACT - tender for construction works - letter of intent issued - formal contract to be entered into - letter of intent envisaged commencement of work prior to formal contract - work commenced and carried on while negotiations continued - whether on construction of letter of intent and with regard to the parties' prior and subsequent conduct a fourth class Masters v Cameron contract had come into existence upon commencement of work - whether party's case in a reference had included that the contract had come into existence - PROCEDURE - contractual claims abandoned in submissions in favour of quantum meruit claim - abandonment conditional on leave to amend - leave opposed - in the event, not necessary to decide question of leave or quantum meruit claim - whether judgment should have been given on contractual claims against abandoning party - COSTS - whether evidence relevant to abandoned claims remained relevant for other purposes - whether error in failing to give other party a costs benefit referable to the abandonment of claims. D. Australian Broadcasting Corporation v XIV Commonwealth Games Ltd (1988) 18 NSWLR 540; Australian Development Corporation Pty Ltd v White Constructions (ACT) Pty Ltd (Giles J, 14 October 1993, unreported); B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 97011; 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; Blair v Curran (1939) 62 CLR 464; Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; Brooks Robinson Pty Ltd v Rothfield (1951) VLR 405; Coulton v Holcombe (1986) 162 CLR 1; Cretazzo v Lombardi (1975) 13 SASR 4; Cummings v Lewis (1993) 41 FCR 559; Dodds Family Investments Pty Ltd v Lane Industries Pty Ltd (1993) 26 IPR 261; Doric Products Pty Ltd v Lockwood Security Products Pty Ltd [2002] FCA 282; Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 97023; Fox v Star Newspaper Company (1898) 1 QB 636; Graham Evans Pty Ltd v Stencraft Pty Ltd (2000) 16 BCL 335; House v The King (1936) 55 CLR 499; Hunter Douglas Australia Pty Ltd v Perma Blinds (1968) 122 CLR 49; Lodder v Slowey (1904) AC 442; Lustre Hosiery Ltd v York (1935) 54 CLR 134; Macquarie Bank Ltd v National Mutual Life Association of Australasia Ltd (1996) 40 NSWLR 543; CASES CITED : Masters v Cameron (1954) 91 CLR 355; Micallef v ICI Australia Operations Pty Ltd [2001] NSWCA 274; Multicon Engineering Pty Ltd v Federal Airports Corporation (2000) 47 NSWLR 631; Nine Network Pty Ltd v Kennedy Miller Television Pty Ltd, CA, 8 June 1994, unreported; NRMA Ltd v Morgan (No 3) [1999] NSWSC 768; Pagnan SpA v Feed Products Ltd (1987) 3 Ll R 601; Pertsinidis v Australian Credit Union Ltd (2001) 80 SASR 76; Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; R W Miller & Co Pty Ltd v Krupp (Australia) Pty Ltd (1991) 32 NSWLR 152; Renaud Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234; Republic of India v India Steamship Co (1993) AC 410; Roads and Traffic Authority of NSW v Wellings [2000] NSWCA 360; Segur v Franklin (1934) 34 SR 67; Sinclair Scott & Co v Naughton (1929) 43 CLR 310; State of Queensland v J L Holdings Pty Ltd (1997) 141 ALR 353; Super Pty Ltd v SJP Formwork (Aust) Pty Ltd (1992) 29 NSWLR 549; Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; Thoday v Thoday (1964) P 181; Thrasyvoulou v Secretary of State for Environment (1990) 2 AC 273; University of Wollongong v Metwally (No 2) (1985) 59 ALJR 481; Water Board v Moustakas (1988) 180 CLR 491; Waters v P C Henderson (Aust) Pty Ltd (CA, 6 July 1994; unreported). PARTIES : Abigroup Contractors Pty Ltd - Appellant ABB Service Pty Ltd (formerly ABB Engineering Construction Pty Ltd) - Respondent FILE NUMBER(S) : CA CA 40970/03 COUNSEL : R Macfarlan QC & P Durack - Appellant B Collins QC & M Orlov - Respondent SOLICITORS : Clayton Utz - Appellant Abbott Tout - Respondent