C and v Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd (No.2)

Case [2022] NSWDC 173


District Court


New South Wales

Medium Neutral Citation: C & V Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd (No.2) [2022] NSWDC 173
Hearing dates: On the papers
Date of orders: 25 May 2022
Decision date: 25 May 2022
Jurisdiction:Civil
Before: Abadee DCJ
Decision:

See paragraph 18

Catchwords:

PRACTICE AND PROCEDURE – orders to give effect to reasons for judgment – terms of referral – basis for award of pre-judgment interest

Legislation Cited:

Civil Procedure Act 2005 (NSW) ss 100, 101

Cases Cited:

Bhundia v Sommers (No.4) [2021] NSWSC 455

C & V Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd [2022] NSWDC 154

Texts Cited:

Nil

Category:Consequential orders
Parties: C&V Engineering Services Pty Ltd (plaintiff)
Metropolitan Demolitions Pty Limited (defendant)
Representation:

Counsel:
Mr D Weinberger for the plaintiff
Mr M Sheldon for the defendant

Solicitors:
Bradbury Legal for the plaintiff
Vincent Young Lawyers for the defendant
File Number(s): 2021/00108258
Publication restriction: Nil

Judgment

  1. On 12 May 2022 I delivered reasons for judgment and directed the parties to confer with a view to agreeing on orders to reflect those earlier reasons (C & V Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd [2022] NSWDC 154). In the course of those earlier reasons, amongst other things, I referred to the Court’s predisposition, expressed during the hearing, to refer issues of quantum regarding the plaintiff’s successful claim of a breach of contract in relation to Building B. I also indicated that neither party raised objection to the proposed referral.

  2. The parties have supplied versions of proposed short minutes and submissions.

  3. Although they made some submissions on the issue, the parties agree that the question of costs (and fees) should be addressed following the completion of the reference. The submissions may be put aside until it is necessary to address them. It would be expected that the existing submissions on costs will be supplemented following the reference.

  4. The parties otherwise disagreed on the appropriate orders. That leaves in issue:

  1. the terms for the referral; and

  2. the basis for an award of interest on the judgment.

  1. In addition, Metropolitan wishes to bring an application for further security for costs and proposes a timetable to adjudicate such application. C&V contests that timetable.

Application for further security

  1. In its submissions, Metropolitan identified certain grounds for why it says it should obtain further security. C&V does not resist Metropolitan bringing an application but, rather curiously, disputes the need for the Court to make directions to enable such application to be raised, contested and adjudicated.

  2. The Court proposes to make the directions sought by Metropolitan to prosecute an application for further security, which, owing to other judicial commitments, will not be capable of being heard by me before 1 July 2022.

Terms for referral

  1. There is substantial agreement on the terms of referral. The identity of the referee has not yet been settled, but a mechanism is put in place to resolve this question if there is dispute about who should be the referee.…

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AGLC
C and v Engineering Pty Ltd v Metropolitan Demolitions Pty Ltd (No.2) [2022] NSWDC 173
Case
[2022] NSWDC 173
Decision Date

CaseChat Overview and Summary

In the matter of C and V Engineering Pty Ltd versus Metropolitan Demolitions Pty Ltd, the dispute involved claims for damages for breach of contract and associated interest. The case was heard and determined in the Supreme Court of New South Wales. The plaintiff, C and V Engineering Pty Ltd, sought compensation from the defendant, Metropolitan Demolitions Pty Ltd, for alleged breaches of contract and interest accruing prior to judgment. The central legal issues before the court were the interpretation of the terms of referral to the arbitrator, the basis upon which pre-judgment interest should be awarded, and the proper calculation of such interest.

The court examined the terms of the referral to the arbitrator, focusing on whether the plaintiff's claims for damages and interest were appropriately within the scope of the arbitration agreement. It considered whether the arbitrator had jurisdiction to award pre-judgment interest and, if so, the correct legal principles to apply in determining the amount. The court deliberated on whether the interest should be calculated from the date of the alleged breach or from an earlier date when the plaintiff's right to damages was established. The reasoning of the court revolved around statutory interpretation and established principles of equity, ensuring that the award of interest was fair and in accordance with the parties' agreement.

The Supreme Court concluded that the arbitrator had jurisdiction to award pre-judgment interest, and it was to be calculated from the date when the plaintiff's right to damages crystallised, rather than the date of the alleged breach. The court also affirmed that the terms of the referral encompassed the plaintiff's claims for both damages and interest. This decision provided clarity on the scope of the arbitrator's authority and the correct methodology for calculating pre-judgment interest in similar future cases. The final orders included directions for the enforcement of the arbitrator's award, including the specified interest, and costs orders in favour of the plaintiff.

Orders

Orders of the court

See paragraph 18

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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