Hayward v Timilty

Case [2009] NSWDC 54


CITATION: Hayward v Timilty [2009] NSWDC 54
This decision has been amended. Please see the end of the judgment for a list of the amendments.
HEARING DATE(S): November 2008 24, 25, 26, 27, 28
December 2008 1, 2, 3, 4, 5, 8, 11
 
JUDGMENT DATE: 

23 January 2009
JURISDICTION: Civil
JUDGMENT OF: Williams DCJ
DECISION: The plaintiffs have been substantially unsuccessful in their claim. Likewise, except for the matters on the Scott Schedules the builder has been substantially successful. There will therefore be a verdict for plaintiff on the plaintiff’s claim against the builder to the extent of any adjustment needed to be made by the schedules and a verdict for the builder on the builder’s cross-claim against the plaintiff again, subject to the schedules and what I have said in paragraph 157.
CATCHWORDS: BUILDING & CONSTRUCTION - Home Building Act - interpretation - enforceability - validity of contract - costs plus contract - fixed price contract - "estimate" meaning of - "quote" meaning of - quantum meruit - false and misleading conduct - civil fraud
LEGISLATION CITED: Trade Practices Act 1974
Fair Trading Act 1987
Contracts Review Act 1980
Home Building Act 1989.
Evidence Act
CASES CITED: Parkdale Custom Built Furniture Pty Ltd v Paxu Pty Ltd 1982 149 CR 191
Palmer –v– Dolman 2005 NSWCA 361
Broadshaw –v–McEvans P/L (1951) 217 ALR 1
Neat Holdings P/L –v–Karajan Holding P/L (1992) 67 ALJR 170
Winterton Constructions P/L –v–Hambros Australia P/L (1992) 39 FCR97
Pavey and Mathews P/l –v– Paul (1986) 162 CLR 221
Horton –v– James (1934) 34 SR (NSW) 368
Coshott and Anor v Fewings Joinery Pty Ltd [1996] NSWCA 122
Sunvara Pty Ltd v Williams [2001] NSWSC 433
McGrath and Another v Australian Naturalcare Products Pty Ltd [2008] FCAFC 2
Yorke –v– Lucas (1985) CLR 661
Marks –v– GIO Australia Holdings Ltd (1998 196 CLR 494
ASX Operations P/L –v– Pont Data Australia P/L (1991) 27 FCR 492
Trimis –v– Mina (1999) NSWCA 140
Update Constructions P/L v Rozelle Child Care Centre (1990) 20 NSWLR 251
Flett v Deniliquin Publishing Co Ltd (1964-1965 NSWR 383
Cooks Constructions P/L –v– Stork Food Sytems Aust P/L 2008 QSC 179
Way –v– Latilla 1937 3 ALLER 759
Kane Constructions P/L –v– Sopov (2005) VSC 37
Kane Constructions –v –Sopov No 2 2005 VSL 492
Gray (Constructions) P/L –v– Hogan 2000 NSWCA 26
Mohammed –v– Local Court of NSW and Sleiman 2008 NSWSC 949
Brenner –v– First Artists Management P/L 1993 2VR 22
TEXTS CITED: Laws of Australia Part C Unenforceable and Void Contract at [144]
PARTIES: Deidre Hayward
Stephen Hayward
StephenTimilty
S J Timilty Building Pty Ltd
FILE NUMBER(S): 280/07
COUNSEL: Plaintiff: Mr I George
Defendant: Mr S Docker
SOLICITORS: Plaintiff: Howard S. Charles & Co.
Defendant: Kemp Strang Lawyers.


    1. The plaintiffs, Mr and Ms Hayward, are the owners of a house (the property). The Defendants are respectively a builder and his building company who undertook renovations at the property in 2004. Unless otherwise indicated I will refer…

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Hayward v Timilty [2009] NSWDC 54
Case
[2009] NSWDC 54
Decision Date

CaseChat Overview and Summary

The case of Hayward v Timilty involves the plaintiffs, Mr and Mrs Hayward, who sought damages from the defendants, Timilty, a builder, over alleged breaches of contract and misleading conduct in the construction of a home. The dispute was heard in the Supreme Court of New South Wales. The plaintiffs claimed that Timilty had breached their contract by providing misleading quotes and estimates for the construction costs. Timilty, in turn, cross-claimed for the balance of the purchase price under the contract and sought an indemnity for costs and expenses incurred due to the plaintiffs' alleged breaches of contract.

The court had to determine several legal issues, including the enforceability of the contract, the meaning of the terms "estimate" and "quote" within the context of the contract, and whether the plaintiffs' claims of false and misleading conduct could be substantiated. The court also needed to decide whether the plaintiffs were entitled to a recovery under quantum meruit and whether there was sufficient evidence to support a claim of civil fraud.

In delivering the judgment, the court found that while the plaintiffs had a case to answer regarding the enforceability of the contract and the meaning of "estimate" and "quote," they had not proven their claims of misleading conduct or civil fraud. The court held that the contract was valid and enforceable and that the plaintiffs were not entitled to any recovery under quantum meruit. The court also found that Timilty was substantially successful in their cross-claim, except in relation to specific matters outlined in the Scott Schedules. The court ordered a verdict for the plaintiffs to the extent of any adjustments needed by the schedules and a verdict for Timilty on their cross-claim, subject to the schedules and specific directions provided in the judgment.

Orders

Orders of the court

The plaintiffs have been substantially unsuccessful in their claim. Likewise, except for the matters on the Scott Schedules the builder has been substantially successful. There will therefore be a verdict for plaintiff on the plaintiff's claim against the builder to the extent of any adjustment needed to be made by the schedules and a verdict for the builder on the builder's cross-claim against the plaintiff again, subject to the schedules and what I have said in paragraph 157.

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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