Minister for Public Works v Renard Constructions (Me) Pty Limited

The applicant, the Minister for Public Works, sought special leave to appeal a decision of the Court of Appeal concerning a building contract dispute with the respondent, Renard Constructions (M.E.) Pty Limited. The dispute arose from a schedule of rates contract with an estimated final value of $208,000. The contractor was found to be in breach, but not to a degree that would justify termination at common law. The contractor had been paid $74,000 of the contract price at the time of the dispute.

The primary legal issue before the High Court was whether, following a wrongful repudiation of a building contract by the owner, a contractor who accepts the repudiation and sues in quantum meruit can recover an amount exceeding the contract price that would have been payable had the contract been completed. Specifically, the court was asked to determine if the contract rates should act as a ceiling on quantum meruit recovery in such circumstances.

The Court of Appeal had unanimously held that there was no such ceiling, with Meagher JA's reasoning, which was adopted by the other judges, being central to this conclusion. His Honour relied on existing authority, including a New Zealand Court of Appeal decision approved by the Privy Council in *Slowey v Ladder*, which established that an innocent party electing for quantum meruit recovery is entitled to the reasonable value of the work done, irrespective of the original contract price. The applicant argued that special leave should be granted to examine the correctness of this principle, given its universal applicability and the limited Australasian authority on the point, which predated modern contract law developments.