Ashell Homes Constructions Pty Ltd v Kobus

The case before the court involved Ashell Homes Constructions Pty Ltd, the plaintiff, and Kobus, the defendant. The dispute centred on a building contract where the defendant, as the builder, allegedly deviated from the contractual obligations over a period of time. The plaintiff sought a declaration of repudiation of the contract and damages for the defendant's actions. The court was required to determine if the breaches, individually or cumulatively, constituted a repudiation of the contract by the builder. Additionally, the court had to decide if the plaintiff had deliberately exercised dominion over the defendant’s tools and equipment on the building site, which amounted to conversion.

The court considered the evidence and submissions from both parties to ascertain if the builder’s conduct showed an intention to only comply with contractual obligations when convenient. The court examined whether the builder's actions over time, which included numerous departures from the contract, demonstrated a clear intention to repudiate the contract. The plaintiff argued that the builder's conduct showed a pattern of non-compliance, leading to the conclusion that the builder intended to perform the contract only when it suited them. The court found that the builder's actions amounted to a repudiation of the contract.

In its judgment, the court ruled in favour of the plaintiff, establishing that the builder had repudiated the contract. The court also found that the plaintiff did not convert the defendant's tools and equipment by deliberately exercising dominion over them. The court ordered judgment for the plaintiff in the sum of $25,089.35 plus interest and directed the removal of a caveat from the land titles registry. Further, the court directed the parties to agree on the costs or propose a timetable for further proceedings if they could not agree on the matter of costs.