G and N Rosso Constructions Pty Ltd v Crnjac

The New South Wales Court of Appeal considered a dispute between G and N Rosso Constructions Pty Ltd (the appellant) and Crnjac (the respondent). The core of the disagreement concerned the appellant's entitlement to payment for work performed under a building contract, specifically in relation to a claim for a quantum meruit.

The primary legal issues before the Court of Appeal were whether the respondent had repudiated the building contract, and if so, whether the appellant was entitled to recover the value of the work it had performed on a quantum meruit basis, notwithstanding the existence of a formal contract. The Court also had to determine the appropriate method for assessing the quantum meruit claim.

The Court of Appeal found that the respondent had indeed repudiated the contract. Applying established principles, the Court held that where a contract is wrongfully repudiated by one party, the other party may elect to accept the repudiation and be discharged from further performance. In such circumstances, the innocent party is entitled to recover damages for breach of contract, which can include the value of work done. The Court clarified that the measure of recovery on a quantum meruit basis is the value of the work performed, not the contract price, and that the contract price can be relevant as evidence of that value. The Court also considered the principles of unjust enrichment in its reasoning.

The Court of Appeal allowed the appeal, setting aside the judgment of the primary judge and remitting the matter to the Supreme Court for a new assessment of the quantum meruit claim.