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 New South Wales Court of Appeal, which had affirmed a judgment in favour of Mr Goudappel and his wife. The dispute concerned the proper interpretation of a clause in a building contract that provided for an extension of time for completion of works 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 correct 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 adverse weather had to be of such a nature that it could not reasonably have been foreseen or guarded against, or whether the clause operated irrespective of foreseeability or preventability.

The High Court held that the contractual clause did not require the adverse weather to be unforeseeable or unavoidable. The Court reasoned that the plain language of the clause, which referred to "adverse weather", did not impose any such qualification. It was sufficient that the weather experienced was adverse and caused a delay to the works. The Court emphasised the importance of adhering to the literal meaning of contractual terms unless there was a clear indication to the contrary.

The appeal was allowed, and the judgment of the New South Wales Court of Appeal was set aside.