Cordon v Lesdor

Cordon brought proceedings against Lesdor in the Supreme Court of New South Wales, seeking relief in relation to a construction contract. The contract specified that the plaintiff was to complete the project in accordance with plans and specifications. Lesdor terminated the contract, alleging that the plaintiff had repudiated it and breached its terms. The plaintiff argued that it had completed the works in accordance with the contract and that Lesdor wrongfully interfered with its rights under a bank facility. Lesdor contended that the plaintiff had not completed the works in accordance with the contract and that the plaintiff had breached its fiduciary obligations.

The court was required to determine the meaning of "completion" in the contract and whether the plaintiff had completed the works in accordance with the contract. The court also had to consider whether Lesdor had wrongfully interfered with the plaintiff's rights under the bank facility and whether the plaintiff had breached its fiduciary obligations. Additionally, the court had to determine whether Lesdor had breached its obligations under an interim management agreement and whether either party had suffered a loss. Finally, the court had to assess the amount of any loss suffered by either party.

The court found that the term "completion" in the contract required practical completion rather than completion in accordance with plans and specifications. The court also found that the plaintiff had completed the works in accordance with the contract. The court held that Lesdor had wrongfully interfered with the plaintiff's rights under the bank facility and that the plaintiff had not breached its fiduciary obligations. The court further held that Lesdor had breached its obligations under the interim management agreement. The court found that Lesdor had suffered a loss and that the plaintiff had not suffered a loss. The court awarded Lesdor damages in the amount of $1,145,130 plus interest.

The court also rejected the referee's report and adopted its own findings of fact and conclusions of law. The court held that Lesdor was not unjustly enriched at the plaintiff's expense and that the plaintiff was not entitled to restitution on a quantum meruit basis. The court held that Lesdor had mitigated its loss and that the plaintiff had not suffered a loss. The court ordered Lesdor to pay Cordon's costs of the reference and the proceedings.