Harris v Morabito Holdings

In the matter of Harris v Morabito Holdings, the dispute arose from the construction of a building under a contract. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was the adoption of a referee’s report in relation to the construction dispute, as well as the interpretation of specific terms within the building contract.

The court was required to determine whether the referee’s report should be adopted in its entirety or if certain conclusions needed to be disregarded. The referee's report was comprehensive and reached conclusions that were open on the evidence presented. The court considered that most of the objections to the report involved an attempt to reargue the merits of the case rather than pointing to factual inaccuracies or legal missteps. However, the court found that there was a denial of natural justice in the referee's conclusions regarding delay and variations. This exception warranted that these specific conclusions should not be adopted.

The Supreme Court concluded that the referee’s report should be adopted in its entirety, except for the conclusions pertaining to delay and variations. The court exercised its discretion judicially, taking into account the purpose for which the discretion to refer was granted. In interpreting the building contract, the court distinguished between the interpretation of the terms of the contract and the standard or extent of performance required to satisfy those terms. The final orders of the court adopted the referee’s report with the noted exceptions and provided clarity on the interpretation of the contract terms in question.