EPS Constructions Pty Ltd v Mass Holdings Pty Ltd

Case [2015] NSWCA 317


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: EPS Constructions Pty Ltd v Mass Holdings Pty Ltd [2015] NSWCA 317
Hearing dates:16 September 2015
Decision date: 15 October 2015
Before: Leeming JA at [1];
Simpson JA at [2];
Sackville AJA at [3]
Decision:

1. Appeal dismissed.
2. Appellants pay the costs of the first and second respondents.

Catchwords: CONTRACT – formation – whether concluded agreement reached between partners and building company – whether primary judge erred in making findings of fact
Cases Cited: Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; 53 NSWLR 153
Fox v Percy [2003] HCA 22; 214 CLR 118
Mass Holdings Pty Ltd v EPS Constructions Pty Ltd [2015] NSWSC 217
Ormwave Pty Ltd v Smith [2007] NSWCA 210
Redbro Investments Pty Ltd v Ceva Logistics (Australia) Pty Ltd [2015] NSWCA 73
Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165
Category:Principal judgment
Parties: EPS Constructions Pty Limited (First Appellant)
Naames Pty Limited (Second Appellant)
Sarahton Pty Limited (Third Appellant)
Emade Semaan (Fourth Appellant)
Mass Holdings Pty Limited (First Respondent)
Charles Massih (Second Respondent)
Semcorp (Aust) Pty Limited (Third Respondent)
Elie Kaltoum (Fourth Respondent)
Representation:

Counsel:
BW Walker SC / BF Katekar (Appellants)
R Dick SC / P Bolster (First and Second Respondents)

  Solicitors:
Henry Davis York (Appellants)
Rankin Ellison Lawyers (First and Second Respondents)
File Number(s):2015/132246
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity Division
Citation:
[2015] NSWSC 217
Date of Decision:
13 March 2015
Before:
Darke J
File Number(s):
2011/356937

Judgment

  1. LEEMING JA: I agree with Sackville AJA.

  2. SIMPSON JA: I agree with Sackville AJA.

  3. SACKVILLE AJA: This is an appeal from a decision of a judge of the Equity Division (Darke J). [1] The appeal challenges findings of fact made by the primary Judge in resolving what senior counsel for the appellants described as “a straightforward common law claim in contract”.

  4. The claim was made by the first respondent (Mass Holdings), one of four members of a partnership or joint venture. (It is common ground that nothing turns on whether the four were partners or joint venturers.) Mass Holdings sued on what it said was an oral agreement between the partners (as I shall describe them) and the first appellant (EPS), a building company associated with one of the partners.

  5. Mass Holdings claimed that the partners and EPS had entered into a binding oral agreement under which EPS agreed to pay the partners an amount equivalent to the difference between two sums. The first of the two sums was the amount Housing NSW agreed to pay EPS to construct units on land that Housing NSW had acquired from the partners. The second was a fixed sum of $8,096,000, agreed between the partners and EPS. Since the price Housing NSW [2] agreed to…

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Details
AGLC
EPS Constructions Pty Ltd v Mass Holdings Pty Ltd [2015] NSWCA 317
Case
[2015] NSWCA 317
Decision Date

CaseChat Overview and Summary

EPS Constructions Pty Ltd (the appellant) appealed a decision of the primary judge concerning a dispute with Mass Holdings Pty Ltd and others (the respondents) regarding the formation of a contract. The central issue revolved around whether a concluded agreement had been reached between the parties for building works.

The court was required to determine whether the primary judge had erred in their findings of fact regarding the existence of a concluded contract. Specifically, the appeal questioned whether the evidence supported the conclusion that the parties had reached a binding agreement, or if negotiations remained at a stage where no enforceable contract had yet been formed.

The appellate court upheld the primary judge's findings, reasoning that the evidence presented demonstrated a clear intention by the parties to be bound by the terms discussed and agreed upon. The court applied established principles of contract law concerning offer, acceptance, and intention to create legal relations, finding that these elements were satisfied. The primary judge's factual findings were not disturbed as they were open to be made on the evidence. Consequently, the appeal was dismissed, and the appellants were ordered to pay the costs of the respondents.

Orders

Orders of the court

1. Appeal dismissed.

2. Appellants pay the costs of the first and second respondents.

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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