UGL Rail Pty Ltd v Wilkinson Murray Pty Ltd [2014] NSWSC 1959

Supreme Court New South Wales

Medium Neutral Citation: UGL Rail Pty Ltd v Wilkinson Murray Pty Ltd [2014] NSWSC 1959 Hearing dates: 20 to 24, 27, 28, 30, 31 October 2014, 3 to 5, 7, 10 to 12, 20 and 21 November 2014 Decision date: 15 December 2014 Jurisdiction: Equity Division - Technology and Construction List Before: Ball J Decision: Judgment for the plaintiff in the sum of $5,059,026.17 Catchwords: TORTS – negligence – whether acoustic engineering advice provided by defendant negligent – whether plaintiff contractor relied on advice when installing insufficient material in breach of head contract – where reliance required contractor to prove what non-negligent advice would have been and what it would have done had it received non-negligent advice – whether claim apportionable under Civil Liability Act 2002 (NSW), Pt 4 – plaintiff who contributes to its own loss not a "concurrent wrongdoer" – whether plaintiff contributorily negligent TRADE PRACTICES – claim for damages under Trade Practices Act 1974 (Cth), s82 for breach of s 52 – whether advice given by defendant misleading or deceptive – whether plaintiff contractor relied on advice when installing insufficient material in breach of head contract – whether claim apportionable under Trade Practices Act 1974 (Cth), Pt VIA – plaintiff who contributes to its own loss not a "concurrent wrongdoer" – whether plaintiff contributorily negligent DAMAGES – where plaintiff settled claim brought against it by head contractor for breach of head contract – where plaintiff claims cost of settlement against defendant under contractual indemnities – causation – whether negligent or misleading or deceptive advice caused plaintiff to enter into settlement agreement – Civil Liability Act 2002 (NSW), s 5D – s 5D not applicable to claims under Trade Practices Act 1974 (Cth), s 82 but words "by conduct of another" require a causal connection – whether s 5D applies to claim under contractual indemnity not clear and depends on construction of indemnity provisions – causation in this case dependent on reasonableness of settlement whichever test of causation applied DAMAGES – where plaintiff settled claim brought against it by head contractor for breach of head contract – where plaintiff claims cost of settlement against defendant under contractual indemnities – whether settlement reasonable – whether amount paid pursuant to settlement reasonable in the circumstances – whether appropriate that defendant be liable for the full extent of the settlement where only causally responsible for part of it – Civil Liability Act 2002 (NSW), s 5D(1)(b) – court to determine what would be a reasonable settlement when actual settlement unreasonable CONTRACT – where negligent advice in breach of agreement between plaintiff and defendant – whether plaintiff estopped from asserting breach of contract based on common assumption – whether plaintiff breached implied term that parties cooperate – claim statute barred by Limitation Act 1969 (NSW), s 14 where breach occurred in 2003 and proceedings commenced in 2011 Legislation Cited: Civil Liability Act 2002 (NSW), Pt 1A, ss 5A, 5B, 5D, 5O, Pt 4, ss 34, 35 Law Reform (Miscellaneous Provisions) Act 1965 (NSW), s 9 Limitation Act 1969 (NSW), s 14 Trade Practices Act 1974 (Cth), ss 52, 82, Pt VIA Cases Cited: AI Mclean Pty Ltd v Hayson [2008] NSWSC 927 Adeels Palace v Moubarak [2009] HCA 48; (2009) 239 CLR 420 Allianz Australia Insurance Ltd v GSF Australia Pty Ltd [2005] HCA 26; (2005) 221 CLR 568 BHP Billiton (Olympic Dam) Corporation Pty Ltd v Steuler Industriewerke GmbH (No 2) [2011] VSC 659 Biggin & Co Ltd v Permanite Ltd [1951] 2 KB 314 BNP Paribas v Pacific Carriers Ltd [2005] NSWCA 72 Bovis Lend Lease Limited v RT Fire Protection Limited [2003] EWHC 939 (TCC); (2003) 89 ConLR 169 Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54; (1991) 174 CLR 64 Commonwealth v Cornwell [2007] HCA 16; (2007) 229 CLR 519 Concrete Pty Ltd v Parramatta Design and Developments Pty Ltd [2006] HCA 55; (2006) 229 CLR 577 Drayton v Martin (1996) 67 FCR 1 Edwards v Insurance Office of Australia Ltd (1933) 34 SR (NSW) 88 General Feeds Inc Panama v Slobodna Plovidba Yugoslavia [1999] 1 Lloyd's Rep 688 Gibbs v Guild (1881) 8 QBD 296 Hadley v Baxendale (1854) 9 Ex 341; (1854) 156 ER 145 Hawkins v Clayton [1988] HCA 15; (1988) 164 CLR 539 Henville v Walker [2001] HCA 51; (2001) 206 CLR 459 Howe v Teefy (1927) 27 SR (NSW) 301 Hudson Investment Group Ltd v Atanaskovic [2014] NSWCA 255; (2014) 311 ALR 290 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [2002] HCA 41; (2002) 210 CLR 109 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 King v Western Sydney Local Health Network [2013] NSWCA 162 Lawfund Australia Pty Ltd v Lawfund Leasing Pty Ltd [2008] NSWSC 144; (2008) 66 ACSR 1 March v E & MH Stramare Pty Ltd [1991] HCA 12; (1991) 171 CLR 506 McRae v Commonwealth Disposals Commission [1951] HCA 79; (1951) 84 CLR 377 Monaghan Surveyors Pty Ltd v Stratford Glen-Avon Pty Ltd [2012] NSWCA 94 Nykredit Mortgage Bank Plc v Edward Erdman Group Ltd (No 2) [1998] 1 All ER 305 Paul v Cooke [2013] NSWCA 311; (2013) 85 NSWLR 167 QBE Insurance (Australia) Ltd v Wesfarmers General Insurance Ltd [2010] NSWSC 855 Rail Corporation NSW v Fluor Australia Pty Ltd [2009] NSWCA 344 Raphael Shin Enterprises Pty Ltd v Waterpoint Shepherds Bay Pty Ltd [2014] NSWSC 743 Rennie Golledge Pty Ltd v Ballard [2012] NSWCA 376; (2012) 82 NSWLR 231 Roe v Minister for Health [1954] 2 QB 66 Secured Income Real Estate (Aust) Ltd v St Martins Investments Pty Ltd [1979] HCA 51; (1979) 144 CLR 596 Strong v Woolworths [2012] HCA 5; (2012) 246 CLR 182 Tanna v Deutsche Bank (Asia) AG [1996] NSWSC 408 Tanna v Deutsche Bank (Asia) AG (Court of Appeal (NSW), 15 September 1998, unrep) Travel Compensation Fund v Tambree [2005] HCA 69; (2005) 224 CLR 627 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd [1998] HCA 38; (1998) 192 CLR 603 Wallace v Kam [2013] HCA 19; (2013) 250 CLR 375 Wardley Australia Ltd v State of Western Australia (1992) 175 CLR 514 Zanner v Zanner [2010] NSWCA 343; (2010) 79 NSWLR 702 Texts Cited: DA Bies and CH Hansen, Engineering Noise Control: Theory and Practice (2nd ed, 1996, E & FN Spon) D Villa, Annotated Civil Liability Act 2002 (NSW) (2nd ed, 2013, Lawbook Co) JD Heydon, Cross on Evidence (8th Aust ed, 2010, LexisNexis) The Negligence Review Panel, Review of the Law of Negligence: Final Report (2002) W Courtney, "Settlements Following Breach of Contract" (2013) LMCLQ 157 Category: Principal judgment Parties: UGL Rail Pty Ltd (Plaintiff) Wilkinson Murray Pty Ltd (Defendant) Representation: Counsel: MA Jones SC with Ms JA Steele and Ms CO Gleeson (Plaintiff) RA Cavanagh SC with SJ Walsh (Defendant)