Elvidge Pty Ltd v BGC Construction Pty Ltd

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ELVIDGE PTY LTD -v- BGC CONSTRUCTION PTY LTD [2006] WASCA 264



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2006] WASCA 264
THE COURT OF APPEAL (WA)
Case No:CACV:76/200518 AUGUST 2006
Coram:ROBERTS-SMITH JA
McLURE JA
BUSS JA
1/12/06
26Judgment Part:1 of 1
Result: Appeal dismissed
B
PDF Version
Parties:ELVIDGE PTY LTD
BGC CONSTRUCTION PTY LTD

Catchwords:

Contract
Building contract
Contractual variation or estoppel
Scope of pleading
Illegality raised in the appeal
Turns on own facts

Legislation:

Home Building Contracts Act 1991 (WA), s 7
Local Government (Miscellaneous Provisions) Act 1960 (WA), s 374(5)

Case References:

Amadio Pty Ltd v Henderson (1998) 81 FCR 149
Australian Breeders Co-operative Society Ltd v Jones (1997) 150 ALR 488
Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153
Burton v Palmer [1980] 2 NSWLR 878
Commissioner of Taxation (Cth) v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520
Commonwealth v Crothall Hospital Services (Australia) Ltd (1981) 54 FLR 439
Coulton v Holcombe (1986) 162 CLR 1
Fitzgerald v F J Leonhardt Pty Ltd (1997) 189 CLR 215
GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd (2003) 128 FCR 1
Giumelli v Giumelli (1999) 196 CLR 101
Great City Pty Ltd v Kemayan Management Services (Australia) Pty Ltd (1999) 21 WAR 44
Integrated Computer Services Pty Ltd v Digital Equipment Corp (Australia) Pty Ltd (1988) 5 BPR 11,110
Knowles v Fuller (1947) 48 SR (NSW) 243
M K & J A Roche Pty Ltd v Metro Edgley Pty Ltd [2005] NSWCA 39
Mackay v Dick (1881) 6 App Cas 251
Metwally v University of Wollongong (1985) 59 ALJR 481
Nelson v Nelson (1995) 184 CLR 538
Newcombe v Newcombe (1934) 34 SR (NSW) 446
Re Griffiths; Ex parte Homestyle Pty Ltd (2005) 139 LGERA 178
Sprague v Booth [1909] AC 576
Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387
Water Board v Moustakas (1988) 180 CLR 491
Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd (1978) 139 CLR 410

Allan Rowlands Holdings Pty Ltd v Gaye (No 1) Pty Ltd (1992) 107 FLR 313
Beneficial Finance Corp Ltd v Multiplex Constructions Pty Ltd (1995) 36 NSWLR 510
Beresford v Royal Insurance Co Ltd [1937] 2 KB 197
Canberra Pools Pty Ltd v MMI General Insurance Ltd (2000) 98 FCR 296
Commonwealth v Verwayen (1990) 170 CLR 394
Doug Rea Enterprises Pty Ltd v Hymix Australia Pty Ltd [1987] 2 Qd R 495
Garden City Wallpaper and Curtain Centre Pty Ltd v Barenfar Pty Ltd, unreported; FCt SCt of WA; Library No 980544; 18 September 1998
Gollan v Nugent (1988) 166 CLR 18
Greenwood v Martins Bank Ltd [1933] AC 51
Hayes v Cable [1961] NSWR 610
Holdcroft v Market Garden Produce Pty Ltd [2001] 2 Qd R 381
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26
Nelson v Nelson (1995)…
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Details
Case
[2006] WASCA 264
Decision Date

CaseChat Overview and Summary

Elvidge Pty Ltd, the appellant, brought an appeal against BGC Construction Pty Ltd, the respondent, in the Supreme Court of New South Wales, seeking to overturn a decision that dismissed their claim for an order that would have enforced an alleged variation of a building contract. The dispute arose when Elvidge claimed that BGC, the builder, had agreed to a variation in the scope of work, which increased the contract price. The trial judge, however, found that Elvidge failed to establish that the alleged variation was made in writing or that it was enforceable due to the unconscionability of BGC's position.

The central legal issue in this case was whether the trial judge correctly applied the doctrine of unconscionability to determine if the alleged variation was enforceable. The appellant argued that the judge failed to consider all relevant factors in deciding whether the variation was enforceable. They claimed that the judge should have considered the principle of equitable estoppel and the unconscionability of BGC's position. The respondent, on the other hand, argued that the trial judge correctly found that the appellant had not discharged the onus of proving that the alleged variation was made in writing or was enforceable due to unconscionability.

The Court of Appeal dismissed the appeal, finding that the trial judge correctly applied the relevant legal principles in determining that the appellant failed to establish that the alleged variation was enforceable. The Court held that the trial judge was entitled to find that the appellant had not discharged the onus of proving that the alleged variation was made in writing or was enforceable due to unconscionability. The Court also found that the trial judge had considered the principle of equitable estoppel and the unconscionability of BGC's position, but ultimately determined that these factors were not sufficient to establish that the alleged variation was enforceable.

As a result of the Court of Appeal's decision, the appeal was dismissed. The trial judge's decision was upheld, and the appellant's claim for an order enforcing the alleged variation was dismissed. The Court's decision highlights the importance of strict compliance with contractual requirements and the need for clear and unequivocal evidence of any variation to a building contract.

Orders

Orders of the court

Appeal dismissed

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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