Manfate Pty Ltd v Krahe & Krahe (No 1) [2016] NSWDC 70

District Court New South Wales

Medium Neutral Citation: Manfate Pty Ltd v Krahe & Krahe (No 1) [2016] NSWDC 70 Hearing dates: 7-10 March 2016; 15-17 March 2016 Date of orders: 17 March 2016 Decision date: 17 March 2016 Jurisdiction: Civil Before: Neilson DCJ Decision: Verdict and judgment for the plaintiff against the defendants in the amount of $122,335.10 Catchwords: CIVIL – Building and construction – Breach of contract – Oral contract between parties for construction of restaurant – Whether mention of a price was an estimate or a quote - Meaning of terms "estimate" and "quote" – Evidence indicating "fixed price" quote implausible – Approximately 9 years elapsed between oral agreement and swearing of affidavits – Past dealings between parties suggestive of informal, trusting and flexible contractual relationships – Contract formed prior to permission being granted by local council to perform works – Lack of specifications for the type of construction materials used – Variation to original plans resulting in significantly higher costs not discussed by parties – Implausible that parties would not discuss significant cost increase if contract were a fixed price contract

DAMAGES – Quantum meruit – Plaintiff claimed on quantum meruit basis if Court were to find that no contracted had been formed – Damages for unjust enrichment would exceed damages for breach of contract – Damages for unjust enrichment would unjustly enrich the plaintiff

WORDS AND PHRASES – Estimate – Quote – Fixed price quote Legislation Cited: Environmental Planning and Assessment Act 1979 (NSW) Cases Cited: Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; (2001) 53 NSWLR 153 Hayward v Timilty [2009] NSWDC 54 Kyren Pty Ltd v Built Projects Pty Ltd [2006] SASC 204 Monarch Building Systems Pty Ltd v Quinn Villages Pty Ltd [2006] QCA 210 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Shorter Oxford Dictionary (Oxford University Press, 5th Ed, 2002) Category: Principal judgment Parties: Manfate Pty Ltd (Plaintiff) Peter Krahe (First Defendant) Paula Krahe (Second Defendant) Representation: Counsel: Ms J Steel (Plaintiff) Mr P Reynolds (Defendants)