Angelopoulos v Sabatino

Case [1995] SASC 5230


COURT IN THE FULL COURT OF THE SUPREME COURT OF SOUTH AUSTRALIA DOYLE CJ(1), DUGGAN(2) AND NYLAND(3) JJ

CWDS
Restitution - mistake: restitution arising from a plaintiff's mistaken actions - recovery for mistakenly conferred services. Owner of hotel property - encourages prospective lessees to make improvements to property - knowledge of expectation that lease to be granted on favourable terrns - acceptance of improvements - restitution appropriate - quantum of restitution. Watson v Watson (1953) NZLR 266; Van den Berg v Giles (1979) 2 NZLR 111, applied. Povey and Matthews Pty Ltd v Paul (1987) 162 CLR 221; Brenner v First Artists' Management Ply Ltd (1993) 2 VR 221, discussed.

HRNG ADELAIDE, 8 June 1995 #DATE 8:9:1995 #ADD 28:11:1995

Counsel for appellants:     Mr B Hayes QC with Mr S O'Sullivan

Solicitors for appellants:    Fisher Jeffries

Counsel for respondent:     Mr S Walsh

Solicitors for respondent:    Lawson Downs

ORDER
Appeal allowed for the purposes of setting aside judgment against the first defendant, described as Chris Angelopoulos, but otherwise the appeal dismissed

JUDGE1 DOYLE CJ This is an appeal against a judgment entered in favour of the plaintiffs in an action heard in the District Court.

2. Judgment was entered for the plaintiffs against the defendants for the sum of $64,626. The judgment was for work and labour done and goods supplied by the plaintiffs in the course of restoration work carried out at the Britannia Hotel in Adelaide. The second defendant, Ditara Pty Ltd ("Ditara"), was the owner of the hotel and, when the work was carried out, held the licence under the Liquor Licensing Act. The first defendant, Angelopoulos, was a director of Ditara and appeared to control its business. The Judge found for the plaintiffs against the defendants not on the basis of a contract, indeed he declined to find that there was a contract, but on the basis of restitution or unjust enrichment.

3. The Judge dismissed a counterclaim by Ditara. The counterclaim was for the cost of remedial works allegedly made necessary because the work done by the plaintiffs was defective.

4. Both defendants appeal against the judgment in favour of the plaintiffs on the claim. Ditara appeals against the dismissal of the counterclaim.

5. Facts: What follows is taken from His Honour's judgment, which canvassed at some length the evidence given before him. I propose to omit details which are not central to the resolution of the issue on appeal. Accordingly, what follows does not attempt to describe all of the events the subject of evidence before His Honour.

6. At the outset I note that His Honour formed an adverse view of the reliability of Mr Angelopoulos. He rejected his evidence wherever it conflicted with that of other witnesses (judgment p32). He proceeded on the basis that Mr Angelopoulos was an experienced business man and property developer.

7. As I have already said, Mr Angelopoulos was the controller of Ditara, which owned the Britannia Hotel. The hotel was occupied and operated by a…

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AGLC
Angelopoulos v Sabatino [1995] SASC 5230
Case
[1995] SASC 5230
Decision Date

CaseChat Overview and Summary

The case of Angelopoulos v Sabatino was an appeal against a judgment entered in the District Court of South Australia in favour of the plaintiffs, who had carried out restoration work on the Britannia Hotel in Adelaide. The defendants, Ditara Pty Ltd and its director Chris Angelopoulos, were found liable for the cost of the work and equipment supplied by the plaintiffs. The appeal was against the judgment in favour of the plaintiffs, and the dismissal of a counterclaim by Ditara for the cost of remedial works allegedly made necessary because the work done by the plaintiffs was defective. The Full Court of the Supreme Court of South Australia upheld the judgment against Ditara, but set aside the judgment against Angelopoulos as he acted in his capacity as a director and shareholder of Ditara, and there was no evidence to suggest that he personally benefited from the work done by the plaintiffs. The court found that the plaintiffs were entitled to recover for their work and equipment under a claim in restitution, as the defendants had accepted the benefits of the plaintiffs' performance of work under circumstances that made it unjust for them to do so without payment. The court emphasised the importance of the notion of acceptance in determining liability in cases of this kind, and noted that the decision should be consistent with existing case law in the area. The amount of restitution was determined to be the market value of the services provided, which was consistent with the trial judge's approach. The counterclaim by Ditara was dismissed as the evidence did not support the claim that the remedial works were due to defective workmanship by the plaintiffs.

Orders

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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