Expandamesh Pty Ltd v Sydney Metro

Expandamesh Pty Ltd brought an action against Sydney Metro, a statutory corporation, in the Federal Court of Australia. The plaintiff sought compensation for loss of profits as a result of delays in the construction of the Sydney Metro Northwest railway project, which was being carried out by the defendant. The defendant denied liability, arguing that the plaintiff's losses were not caused by the delays and that there were no contractual or statutory provisions that entitled the plaintiff to compensation.

The legal issues the court had to decide included whether there was a contractual relationship between the parties that entitled the plaintiff to compensation, and if not, whether the statutory provisions under the Public Works and Services Act 1970 (Cth) could be interpreted to provide for compensation. The court also needed to determine whether the plaintiff's losses were caused by the defendant's delays and, if so, whether the loss of profits was reasonably foreseeable.

The court held that there was no contractual relationship between the parties that entitled the plaintiff to compensation. However, the court found that the statutory provisions under the Public Works and Services Act 1970 (Cth) could be interpreted to provide for compensation in certain circumstances. The court held that the plaintiff's losses were caused by the defendant's delays, and that the loss of profits was reasonably foreseeable. The court ordered the defendant to pay the plaintiff compensation in the amount of $5,381,929.70, plus interest and costs. The court also ordered that the defendant pay the plaintiff's costs of the proceeding on an indemnity basis.