Idameneo (No 123) Pty Ltd v Zahedpur

Idameneo (No 123) Pty Ltd, a corporation providing premises for medical practitioners, brought an action against Dr Zahedpur, a medical practitioner, seeking damages for breach of contract and restitution for unjust enrichment. The dispute arose from two agreements: one to sell Dr Zahedpur’s medical practice to the plaintiff, and another for Dr Zahedpur to provide medical services at one of the plaintiff's medical centres. Following a breakdown in their relationship, Dr Zahedpur refused to work for the plaintiff as per the agreements. Despite opportunities to remedy the breach, Dr Zahedpur did not return to the medical practice, prompting the plaintiff to terminate the agreements. The plaintiff sought damages for breach of contract and, in the alternative, restitution for unjust enrichment.

The primary legal issues before the court were whether Dr Zahedpur’s failure to provide medical services constituted a fundamental breach of the agreements, entitling the plaintiff to damages, and whether the plaintiff could alternatively claim restitution for unjust enrichment. The court had to determine the nature and extent of Dr Zahedpur’s obligations under the agreements and assess whether the plaintiff's termination of the agreements was justified and proportionate to the breach.

The court found that Dr Zahedpur’s failure to provide medical services constituted a fundamental breach of the agreements. This breach allowed the plaintiff to terminate the agreements and seek damages. The court determined that the plaintiff was entitled to damages for the breach of contract, which amounted to $234,202 inclusive of interest to date. The court did not need to address the alternative claim for restitution for unjust enrichment as the primary claim for damages was successful. The court ordered judgment in favour of the plaintiff and directed the parties to provide submissions on costs.