Alcock v KEM Projects Pty Ltd

Case [2020] ACTMC 9


MAGISTRATES COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Alcock v KEM Projects Pty Ltd & Anor

Citation:

[2020] ACTMC 9

Hearing Dates:

27 – 28 February 2017, 26 – 27 March 2018, 20 – 21 September 2018, 7 March 2019

DecisionDate:

1 May 2020

Before:

Magistrate Morrison

Decision:

See paragraph [201]

Catchwords:

LIMITATION OF ACTIONS – contracts, torts and personal actions – application of s 11 of the Limitation Act 1985 (ACT) (“Limitation Act”) – application for extension of time under s 40 of the Limitation Act where cause of action relates to latent damage to property or economic loss in relation to such damage – where alternative causes of action brought in contract and negligence – where plaintiff is not the owner of the property – claim in negligence is in time – where claim in contract meets the definition of economic loss in relation to latent damage – consideration of exercise of discretion in relation to contract claim – length of time between damage and when damage might reasonably have been discovered by the plaintiff – actual prejudice to defendants – relevance of availability of alternative cause of action to question of prejudice – application for extension of time refused

CIVIL LAW – NEGLIGENCE – where plaintiff pleaded claim as breach of a duty of care – where closing submissions rely on claim for contribution under s 21 of the Civil Law (Wrongs) Act 2002 (ACT) – plaintiff not required to specifically plead a claim for contribution – where plaintiff did not plead elements giving rise to a claim for contribution – plaintiff not permitted to raise claim for contribution in closing submissions – where plaintiff did not respond to deficiencies in evidence in establishing breach of duty of care – claim in negligence dismissed

CIVIL LAW – BUILDING, ENGINEERING AND RELATED CONTRACTS – existence of contract for building work  – whether it was a term of the contract that the plaintiff would be remunerated for “applying his building licence to” a project – whether it was a term of the contract that the plaintiff would perform and be remunerated for supervision work – assessment of evidence – no express agreement that the plaintiff would be remunerated – where quantum meruit claim not pursued – claim dismissed

CIVIL LAW – BUILDING, ENGINEERING AND RELATED CONTRACTS – existence of contract for provision of expert and rectification services – whether there was an agreement as to the rate of remuneration – extent of work performed – assessment of evidence – finding that there was agreement as to rate of remuneration – in the alternative, implication of term to pay a reasonable rate – assessment of damages and interest

Legislation Cited:

Civil Law (Wrongs) Act 2002 (ACT) s 21

Civil Liability Act 2002 (NSW)

Limitation Act 1985 (ACT) ss 11, 40

Trade Practices Act 1974 (Cth) s 54

Cases Cited:

Alucraft Pty Ltd (in liq) v Grocon Ltd [1996] 2 VR 386

Andresakis & Skouteris trading as…

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AGLC
Alcock v KEM Projects Pty Ltd [2020] ACTMC 9
Case
[2020] ACTMC 9
Decision Date

CaseChat Overview and Summary

The case of Alcock v KEM Projects Pty Ltd was heard in the ACT Supreme Court. The plaintiff, Alcock, brought a claim against KEM Projects, alleging breach of contract, negligence, and seeking a quantum meruit for work performed. Alcock was not the property owner but sought damages for economic loss due to latent damage to the property. The legal issues revolved around the application of statutory limitation periods, the availability of alternative causes of action, and the specific terms of the contract in question. The court had to determine if Alcock's claims were within the limitation period and if the discretion to extend time under the Limitation Act 1985 (ACT) should be exercised. Additionally, the court needed to assess the evidence regarding the terms of the contract and the work performed, as well as the plaintiff's entitlement to a quantum meruit.

The court found that the claim in negligence was timely as it was within the limitation period, but the claim in contract, which was related to economic loss from latent damage, was not. The court considered the exercise of its discretion under section 40 of the Limitation Act but ultimately decided not to extend the time, citing the significant delay and the absence of actual prejudice to the defendants. The court also held that the availability of an alternative cause of action did not weigh in favour of extending the limitation period. Regarding the contract claims, the court found there was no express agreement for remuneration for applying the plaintiff's building licence or for supervision work. The quantum meruit claim was not pursued, and thus, it was dismissed. The court also noted deficiencies in the evidence regarding the breach of duty of care in the negligence claim, which led to the dismissal of that claim. Lastly, the court found that there was an agreement on the rate of remuneration for expert and rectification services, and damages and interest were assessed accordingly.

In summary, the court dismissed all claims brought by Alcock against KEM Projects. The limitation period for the contract claim was not extended, the negligence claim was dismissed due to insufficient evidence, and the quantum meruit claim was not pursued. The court did find an agreement on the rate of remuneration for the expert and rectification services, and damages and interest were awarded accordingly. The final orders of the court reflect these findings and dismissals.

Orders

Orders of the court

See paragraph [201]

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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