Larsen as trustee for the Larsen Superannuation Fund v Tastec Pty Ltd (formerly Wonders Building Company Pty Ltd) (No 2)

The appeal concerned a dispute between Larsen as trustee for the Larsen Superannuation Fund (the appellants) and Tastec Pty Ltd (formerly Wonders Building Company Pty Ltd) (the respondent). The proceedings originated in the Court below, and the appeal was heard by Adamson and Stern JJA, and Price AJA. The core of the dispute revolved around damages arising from misleading or deceptive conduct.

The Court was required to determine the measure of damages suffered by the appellants as a result of agreeing to a contractual variation, which they contended was induced by the respondent's misleading conduct. Specifically, the Court had to assess the cost of rectification for the installation of cladding and consider whether any reduction was warranted under the principles of proportionate liability, given the case presented by the respondent in the Court below.

The Court reasoned that the appellants' loss was the cost of rectification, and this was to be determined on the papers, with reliance placed on expert quantity surveyor evidence. The Court found that the respondent was bound by the case it had put forward in the Court below, which precluded it from arguing for a reduction in damages based on proportionate liability. Consequently, the Court ordered judgment for the plaintiffs in the Court below (the appellants in this Court) in the sum of $483,244 and ordered the respondent to pay the appellants’ costs of the appeal and in the Court below.