Alexander & Anor v Gregoriou & Ors

The case of Alexander & Anor v Gregoriou & Ors was heard in the Supreme Court of New South Wales. The plaintiffs, Alexander and another party, brought an action against the defendants, Gregoriou and others, regarding issues related to a residential building project. The plaintiffs sought recovery of payments made to unlicensed contractors and the cost of rectifying defective work, as well as an assessment of the defendants' entitlement to remuneration for work performed. The defendants, in turn, made cross-claims for indemnity and contribution against the plaintiffs. The court was tasked with determining the enforceability of the building contracts, the respective obligations of the project manager and builder, and the quantum of damages and costs to be awarded.

The legal issues that arose in the case included the validity of the building contracts given the involvement of unlicensed contractors and the failure to obtain home warranty insurance, as well as the enforceability of the contracts in light of these circumstances. Another issue was whether the plaintiffs could recover from the contractors the monies already paid to them, and the extent to which the contractors were entitled to remuneration for the work done, considering the defective nature of the work. The court also had to determine the status of the contractors' unpaid progress claims and the cost of rectification work. Additionally, the court needed to assess the liability for breaches of contract and statutory warranties, and the validity of the cross-claims for indemnity and contribution. Finally, the court had to decide whether GST was payable on the award of damages and how liability should be apportioned.

In its judgment, the Supreme Court of New South Wales found that the building contracts were enforceable despite the involvement of unlicensed contractors and the absence of home warranty insurance. The court held that the plaintiffs could recover from the contractors the monies already paid, and assessed the contractors' entitlement to remuneration for the work done on a quantum meruit basis. The court found that the defective work resulted in a breach of contract and statutory warranties by the contractors, and accordingly, the plaintiffs were entitled to recover the cost of rectification work. The cross-claims for indemnity and contribution were dismissed. The court also ruled that GST was payable on the award of damages and apportioned the liability between the defendants accordingly.

The court ordered that the plaintiffs were entitled to a verdict against the second and third defendants in the amount of $34,335.62, with liability to be apportioned equally between the second and third defendants. The first defendant was found to be entitled to a verdict against the plaintiffs. The cross-defendants were awarded a verdict against the cross-claimants on each of the three respective cross-claims. The parties were to be heard on the issue of interest and costs before final orders were made.