Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service (No. 2)

Macquarie International Health Clinic Pty Ltd (MIHC) commenced proceedings against Sydney South West Area Health Service (SSAWHS), alleging breach of agreements to lease a property and construct a private hospital and car park. MIHC claimed damages for losses incurred due to SSAWHS's failure to complete the car park, as well as seeking an order for specific performance. SSAWHS cross-claimed for damages due to MIHC's alleged breach of the agreements, specifically for non-payment of lease payments and the construction of a car park. The court was required to determine whether the claims brought by MIHC against SSAWHS accrued prior to the termination of the agreements and whether the agreements provided a right to recover damages post-termination. Additionally, the court needed to decide whether SSAWHS was entitled under the terms of the hospital lease or on restitutionary grounds to recover expenditure for the car park's completion.

The court examined the agreements between the parties, focusing on the terms relating to the lease of the property, the construction of the hospital and car park, and the consequences of termination. The court noted that the issues raised were fact-specific and did not involve any general principles. The court found that MIHC's claims accrued prior to the termination of the agreements and that the agreements did provide a right to recover damages after termination. The court held that SSAWHS was not entitled to recover expenditure for the car park's completion under the terms of the hospital lease or on restitutionary grounds. The court concluded that the agreements did not provide for such a recovery and that SSAWHS had failed to establish a valid claim for restitution.

The court ordered that MIHC's claims for damages due to SSAWHS's failure to complete the car park were to be assessed and quantified by a referee. The court also ordered that SSAWHS's cross-claim for damages due to MIHC's alleged breach of the agreements was to be dismissed. The court further ordered that the parties bear their own costs of the proceedings. The court did not make any orders regarding the specific performance of the agreements, as the court found that the agreements did not provide for specific performance as a remedy.