Illawarra Hotel Company Pty Ltd v Walton Construction Pty Ltd

The appeal concerned a dispute between Illawarra Hotel Company Pty Ltd (the owner) and Walton Construction Pty Ltd (the builder) arising from a contract for building works. The primary dispute involved claims for damages for delay in the completion of the works, extensions of time, and the assessment of damages. The matter had been referred to a referee for inquiry and report, and the appeal concerned the function of the court upon a motion for the adoption of that report and the function of an appellate court when reviewing such a decision.

The legal issues before the Court of Appeal included whether there was a sufficient evidentiary basis for the primary judge's decisions upon the motion to adopt the referee's report, particularly concerning the assessment of damages for late completion and the award of pre-judgment interest. The court was required to consider the appropriate manner of assessing damages for delay and the applicable regime for computing interest.

The Court of Appeal examined the evidence and the primary judge's findings in relation to the referee's report. The court applied principles concerning the weight to be given to a referee's findings and the extent to which a judge can depart from them. The court also considered the contractual provisions relating to extensions of time and the assessment of damages for breach of contract, including the principles governing the award of pre-judgment interest.

The Court of Appeal made directions regarding the form of orders to give effect to its decision, requiring the parties to agree on short minutes of orders within 14 days or, failing agreement, to file their respective proposed orders with submissions within 21 days. Directions were also given for the exchange and filing of written submissions on costs.