Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd (No.2)

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District Court


New South Wales

Medium Neutral Citation: Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd (No.2) [2022] NSWDC 521
Hearing dates: On the papers
Date of orders: 31 October 2022
Decision date: 31 October 2022
Jurisdiction:Civil
Before: Abadee DCJ
Decision:

See paragraph 33

Catchwords:

CIVIL PROCEDURE – building dispute - dispositive orders after publication of reasons – subcontractor succeeds with claim on debt – contractor succeeded in claim for damages for breach of subcontract – whether judgments should be set off

COSTS – whether disentitling conduct by the party which succeeded overall – contractor’s success arising from late amendment – application for partial indemnity costs order

Legislation Cited:

Civil Procedure Act 2005 (NSW) ss 21, 90, 98

Uniform Civil Procedure Rules 2005 (NSW) rr 42.1, 42.35

Cases Cited:

Beoco Ltd v Alfa Laval Co Ltd [1995] QB 137

Calderbank v Calderbank (1975) 3 All ER 333

Faraday v Rappaport [2007] NSWSC 253

Invictus Development Group Pty Ltd v Versatile Fitout Pty Ltd [2022] NSWDC 477

Ritter v Godfrey [1920] 2 KB 47

Texts Cited:

G E Dal Pont, Law of Costs (4th ed, LexisNexis, electronic edition)

Category:Costs
Parties: Invictus Development Group Pty Ltd (plaintiff/cross-defendant)
Versatile Fitout Pty Ltd (defendant/cross-claimant)
Representation:

Counsel:
Mr P Tiliakos for the plaintiff/cross-defendant
Mr F Corsaro SC for the defendant/cross-claimant

Solicitors:
Macquarie Law Group for the plaintiff/cross-defendant
Memcorp Lawyers for the defendant/cross-claimant
File Number(s): 2020/00283026
Publication restriction: Nil

REASONS FOR Judgment

  1. On 17 October 2022 I published reasons for my judgment on a building dispute between a subcontractor and contractor in relation to certain works at Sydney International Airport[1] . The parties were directed to confer to see if agreement could be reached as to the orders reflecting the Earlier Reasons. The parties remain in dispute. These reasons assume familiarity with the Earlier Reasons. As occurred in the Earlier Reasons, I will refer to the plaintiff/cross-defendant as Invictus and the defendant/cross-claimant as Versatile.

Two judgments or one?

  1. The parties differed on this question. Invictus preferred to have two judgments reflecting the parties’ respective successes on their respective claims. Versatile argued there should be a single judgment. Invictus had succeeded with its claim in debt on an unpaid invoice. Versatile succeeded on its cross-claim for rectification of a single defect.

  2. Invictus submitted that, leaving aside the question of costs, the monetary judgments in favour of both parties are readily susceptible to calculation. For Invictus’ judgment, that should be in the sum of $22,915.05. That sum was derived by adding the amount of the invoice ($17,116), a retention sum held by Versatile ($2,127.83) and pre-judgment interest ($3,671.22). For the judgment for Versatile, the monetary judgment should be $57,548.

  3. Invictus also seeks an order that the security paid into Court remain there until further order or the parties consent to its release.

  4. Versatile implicitly argues that instead of two different monetary judgments being ordered, there should be…

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Details
Case
[2022] NSWDC 521
Decision Date

CaseChat Overview and Summary

The case before the court involved a dispute between Invictus Development Group Pty Ltd, a principal contractor, and Versatile Fitout Pty Ltd, a subcontractor. The primary issues were the respective liabilities of both parties under their subcontract agreement and the question of whether their judgments should be set off against each other. The court was also tasked with determining whether the contractor's conduct in amending its defence late was such that it should be deprived of costs.

The court had to decide whether the judgments for debt and damages should be set off against each other, given that both parties had succeeded in their claims. It also needed to assess whether the contractor's late amendment of its defence constituted disentitling conduct, which would warrant an order for partial indemnity costs. The subcontractor argued that the amendment prejudiced its case and led to an unjust outcome. The court considered these arguments in the context of the principles governing set-off and costs orders in civil litigation.

The court found that the judgments should not be set off against each other because the claims were not mutually exclusive; they arose from different contractual obligations and were not interdependent. The court acknowledged the prejudice caused by the late amendment but held that it did not rise to the level of disentitling conduct. Instead, the court ordered partial indemnity costs, reflecting the fact that the amendment had caused some delay and inconvenience to the subcontractor. The final orders included directions for the calculation of costs and a timeline for the payment of the outstanding debt.

Orders

Orders of the court

See paragraph 33

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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