Fulton Hogan Construction Pty Ltd v Grenadier Manufacturing Pty Ltd (in liq)

Fulton Hogan Construction Pty Ltd sued Grenadier Manufacturing Pty Ltd in liquidation, along with others, over issues relating to the failure of a coating applied to the trusses and handrails of a footbridge. The dispute involved whether the failure was due to poor application practices by the second defendant or other contractors, or if it was caused by a defective product manufactured by the third defendant. The case was heard in the Supreme Court of Victoria.

The legal issues before the court were whether an expert could rely on the reasoning and conclusions of subordinates in their expert report and whether damages for rectifying property damage should include GST paid by the plaintiff. Additionally, the court had to determine if the damages for loss from property damage constituted a supply for GST purposes and whether the plaintiff, being registered for GST, was entitled to an input tax credit.

The court found that an expert could adopt the reasoning and conclusions of subordinates in their report. It also ruled that damages for rectifying property damage should not include GST paid by the plaintiff, as these damages did not constitute a supply for GST purposes. Furthermore, the court held that the plaintiff was entitled to an input tax credit for GST paid on the property damage rectification.

The court ordered that the damages awarded to Fulton Hogan Construction Pty Ltd did not include GST and that the plaintiff was entitled to an input tax credit for GST paid on the property damage rectification.