Denmeade v Stingray Boats

[2003] FCAFC 215

FEDERAL COURT OF AUSTRALIA

Denmeade v Stingray Boats [2003] FCAFC 215

ADMIRALTY – claim in respect of construction of a boat

CONTRACT – whether all work was performed under the original contract – whether there was an agreement as to amount owing for ‘extras’ – whether promise to pay for ‘extras’ was made under economic duress.

Cases

Alexander v Rayson [1936] 1 KB 169 Cited

Crescendo Management Pty Ltd v Westpac Banking Corporation (1988) 19 NSWLR 40 Cited

Westpac Banking Corporation v Cockerill (1998) 152 ALR 267 Cited

PHILIP DENMEADE, (THE OWNER OF THE 12 M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523O) v STINGRAY BOATS (A FIRM)
Q 23 of 2003

WHITLAM, KIEFEL, DOWSETT JJ
BRISBANE
5 SEPTEMBER 2003

IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY	Q23 of 2003

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN:	PHILIP DENMEADE (THE OWNER OF THE 12 M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523O) APPELLANT
AND:	STINGRAY BOATS (A FIRM) RESPONDENT
JUDGES:	WHITLAM, KIEFEL, DOWSETT JJ
DATE OF ORDER:	5 SEPTEMBER 2003
WHERE MADE:	BRISBANE

THE COURT ORDERS THAT:

1.Vary the order made on 14 February 2003 by deleting the sum of $21,500 and inserting the sum of $20,500.

2.        The appeal be dismissed.

3.        The appellant pay the respondent’s costs on the appeal.

Note:    Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA
QUEENSLAND DISTRICT REGISTRY	Q23 of 2003

ON APPEAL FROM A SINGLE JUDGE OF THE FEDERAL COURT OF AUSTRALIA

BETWEEN:	PHILIP DENMEADE (THE OWNER OF THE 12 M ALUMINIUM SHIP IDENTIFICATION NUMBER 2523O) APPELLANT
AND:	STINGRAY BOATS (A FIRM) RESPONDENT

JUDGES:	WHITLAM, KIEFEL, DOWSETT JJ
DATE:	5 SEPTEMBER 2003
PLACE:	BRISBANE

REASONS FOR JUDGMENT

THE COURT:

1. This appeal concerns the liability of the appellant, Mr Denmeade, with respect to certain costs of the construction of a boat for him by the respondent, Stingray Boats and in particular whether he agreed with Mr McCourt, for Stingray Boats, that he would pay the sum claimed in respect of those costs.

2. On 15 March 2002 Mr and Mrs McCourt, trading as Stingray Boats, and Mr Denmeade entered into a contract for the construction of a boat.  The ‘CONTRACT INCLUSIONS’ were said to be:

   ‘The construction of one twelve metre tube boat as designed by Stevens and Gravlev.  The computer cut kit will be supplied by the Owner and construction will begin immediately upon receiving the said kit.  The boat will be constructed to meet 1C Survey requirements.’

3. The contract price was to be $72,000 plus goods and services tax, a total of $79,200.  After payment of a deposit, further instalments were to be paid upon completion of the welding of the hull and upon completion of all superstructure fabrication.  The final payment was to be made after installation of engines and jets and all ‘hot work’.  It was to include the goods and services tax component.   It was provided that, in addition to the…