Fletcher Construction Australia Ltd v Lines MacFarlane & Marshall Pty Ltd (No 2)

Fletcher Construction Australia Ltd appealed against a decision made by Lines MacFarlane & Marshall Pty Ltd in a dispute relating to a contract for architectural services. The matter was heard in the Supreme Court of Victoria. The primary issue before the court was whether the judge’s assessment of the percentage of work completed was flawed. The appellant argued that the assessment was incorrect, leading to an unfair determination of the contract’s value and, consequently, the amount owed.

The court considered whether the judge’s reasoning was affected by a significant error and whether the process of reasoning was properly exposed in the reasons for the decision. The court held that the judge’s assessment was flawed, and his reasoning process was not adequately exposed. The court found that the reasons provided by the judge did not sufficiently address the nature of the assessment or the methodology used. Furthermore, the court determined that the judge's errors and the inadequacy of the reasons required a new trial to ensure a fair determination of the dispute.

In light of the court's findings, the appeal was allowed, and a new trial was ordered. The court emphasised the importance of providing adequate reasons for decisions, particularly in complex cases involving significant errors. The new trial aimed to rectify the errors and provide a fair and transparent assessment of the percentage of work completed, ensuring that both parties had an opportunity to present their arguments and evidence in a manner that fully complied with the legal standards.