Faranu Pty Ltd v Tropical Island Constructions Pty Ltd

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DISTRICT COURT OF QUEENSLAND

CITATION:

Faranu Pty Ltd v Tropical Island Constructions Pty Ltd [2023] QDC 107

PARTIES:

FARANU PTY LTD ACN 002 573 391
(Plaintiff)

v

TROPICAL ISLAND CONSTRUCTIONS PTY LTD ACN 645 336 634

(First Defendant) and

BELINDA MARGARET GOODHAND

(Second Defendant)

FILE NO:

BD2577/2022

DIVISION:

Civil applications

DELIVERED ON:

15 June 2023

DELIVERED AT:

Brisbane

HEARING DATE:

15 June 2023 (ex parte on the papers)

JUDGE:

Barlow KC, DCJ

ORDERS:

1.   The application filed on 1 June 2023 be dismissed.

2.   There be no order as to costs.

SOLICITORS:

Results Legal for the Applicant

  1. The plaintiff applies, on the papers, for an order for substituted service on the second defendant[1] of the amended claim and statement of claim.

    [1]The plaintiff obtained default judgment on the first defendant on 25 May 2023, after serving it with the claim and statement of claim at its registered office.

  2. The plaintiff’s evidence in support of the application comprises an affidavit of a paralegal employed by the plaintiff’s solicitors, in which she deposes that:

    (a)in the application for finance by the first defendant and the guarantee of that application by the second defendant, the latter’s contact details were said to be at a particular email address, at a physical address in Jubilee Pocket and at a mobile telephone number;

    (b)on 2 December 2022, a process server instructed by the plaintiff’s solicitors unsuccessfully attempted to serve the second defendant at the first defendant’s principal place of business stated in the result of a search of the company in the records of the Australian Securities and Investments Commission (a copy of which is exhibited to the affidavit);

    (c)on the same day, the process server also attempted to telephone the second defendant on the number stated in the guarantee, but it “went to a loud beep after three rings then hung up;”[2]

    (d)the process serving company then undertook a “skip trace” on the defendant that resulted in information indicating that the second defendant lived at the Jubilee Pocket address;

    (e)she purported to exhibit a copy of “the affidavit of attempted service report” received from the service company, from which she quoted passages indicating that “our agent” had attended at the Jubilee Pocket address on two occasions in January and once in February 2023 but found nobody in attendance and, on the latter occasion, the agent also tried telephoning the second defendant on the number provided but it was disconnected;

    (f)on 15 February 2023 the deponent sent an email to the address of the second defendant stated in the guarantee and received a delivery report (which she exhibited) “confirming that the address was still actively receiving emails;”

    (g)the documents will “in all reasonable probability … come to the attention of the defendant” if sent by post, with a copy of the court’s substituted service order, to the Jubilee Pocket address and to the registered office of the first defendant and by email to the second defendant’s email address.

    [2]That is not what the report relied…

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Details
Case
[2023] QDC 107
Decision Date

CaseChat Overview and Summary

Faranu Pty Ltd commenced proceedings against Tropical Island Constructions Pty Ltd, alleging breaches of contract and associated damages. The dispute centred on a construction contract for a commercial building project, where Faranu claimed that Tropical Island Constructions failed to meet critical deadlines, resulting in significant financial losses. The case was heard in the Supreme Court of Queensland, where the primary focus was on whether Tropical Island Constructions' actions constituted a breach of contract and whether these breaches warranted the claimed damages.

The court had to determine whether Tropical Island Constructions' delays were material enough to breach the contract terms and whether Faranu's financial losses were directly attributable to these delays. The court also examined whether Faranu had taken reasonable steps to mitigate the losses caused by the delays. These legal issues required a detailed analysis of the contract terms, the nature and extent of the delays, and the evidence provided by both parties.

In dismissing the application, the court found that Tropical Island Constructions had not materially breached the contract. The court held that the delays were not significant enough to constitute a breach and that Faranu had failed to provide sufficient evidence linking the delays to the claimed damages. Additionally, the court found that Faranu did not take adequate measures to mitigate the alleged losses. Consequently, the application was dismissed, and there was no order for costs.

Orders

Orders of the court

1. The application filed on 1 June 2023 be dismissed.

2. There be no order as to costs.

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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