ADCO Constructions Pty Ltd v Goudappel and Anor

ADCO Constructions Pty Ltd (ADCO) appealed to the High Court of Australia against a decision of the Queensland Court of Appeal, which had affirmed a judgment in favour of Mr Goudappel and his insurer, CGU Insurance Ltd. The dispute concerned the interpretation of a clause in a building contract that provided for an extension of time for completion due to adverse weather. ADCO argued that the Court of Appeal had erred in its construction of this clause.

The central legal issue before the High Court was the proper interpretation of a contractual provision that granted an extension of time for delays caused by "adverse weather". Specifically, the court had to determine whether the clause required the adverse weather to be of such a nature that it would not have been reasonably foreseen by an experienced builder, or whether it was sufficient that the weather experienced was, in fact, adverse and caused a delay.

Kiefel and Keane JJ held that the contractual provision did not require the adverse weather to be unforeseeable. Their Honours reasoned that the plain language of the clause referred to weather that was "adverse", meaning it was of a nature that caused delay. The contract did not impose a requirement of unforeseeability, and to read such a requirement into the clause would be to add words that were not present. The appeal was therefore allowed, and the judgment of the Court of Appeal was set aside.