Calibre Construction Group Pty Ltd v Kaloriziko Pty Ltd atf Ryde Combined Unit Trust; Kaloriziko Pty Ltd atf Ryde Combined Unit Trust v Calibre Construction Group Pty Ltd (No 2)

The dispute between Calibre Construction Group Pty Ltd (the builder) and Kaloriziko Pty Ltd atf Ryde Combined Unit Trust (the developer) involved allegations of breach of trust and coordinate liability. The builder claimed that the developer had breached a trust by not releasing retained funds and that a director of the developer was knowingly involved in this breach. The builder also sought damages for delay and variation of the building contract. The matter was heard in the Supreme Court of New South Wales. The court was tasked with determining whether a trust was constituted, whether there was coordinate liability between the parties, and the interpretation of terms within the building contract.

The court examined the contractual terms, particularly the trust provision, and concluded that no trust was constituted. The builder's claim for breach of trust was dismissed as the contract did not create a trust relationship. The court also considered the issue of coordinate liability and determined that the builder's settlement with other defendants did not discharge the coordinate liability of the developer. The transfer of residential lots was not at an undervalue, and thus did not confer a benefit on the builder. Regarding the building contract, the court interpreted the terms "variation" and "direction" and found that the developer was not entitled to contest the variations. The court held that the builder was not liable for liquidated damages due to a factual dispute over the original completion date.

The court ruled that the builder's claims for breach of trust and coordinate liability were without merit. The developer was not liable for damages related to the variations or the delay in completion. The court dismissed all claims brought by the builder against the developer.