Allmen Industries Pty Ltd v Action Recovery Services Pty Ltd

Allmen Industries Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning a building sub-contract dispute with Action Recovery Services Pty Ltd (the respondent). The core of the dispute involved the respondent's cessation of work under the sub-contract and the parties' respective contentions as to which of them had repudiated the contract.

The Court of Appeal was required to determine whether the primary judge's findings of fact were adequately supported by the evidence and whether those findings were sufficiently related to the issues raised in the pleadings. A further issue was whether the primary judge's reserved judgment, delivered "of-the-cuff," contained adequate reasoning to justify the conclusions reached, particularly in light of a significant conflict of evidence presented at trial.

The Court found that the primary judge's findings were inadequate and lacked sufficient connection to the pleadings, failing to resolve the central conflict of evidence regarding repudiation. The judgment was criticised for its lack of detailed reasoning, making it difficult to ascertain the basis upon which the decision was made. Consequently, the Court concluded that a retrial was necessary to properly address the disputed issues.

The appeal was allowed with costs, and the cross-appeal was dismissed with costs. A retrial of the proceedings was ordered, and the respondent was granted a certificate under the Suitors Fund Act 1951.