MJ Arthurs Pty Ltd v Portfolio Housing Pty Ltd

In MJ Arthurs Pty Ltd v Portfolio Housing Pty Ltd, the appellants, MJ Arthurs Pty Ltd and others, appealed against findings made by the learned primary judge regarding the timing of the respondents' entitlement to profit share under an oral agreement. The factual background revealed that the parties had been engaged in building projects since 2005, with the respondents identifying opportunities and the appellants undertaking the construction work. Profits were shared equally upon completion of each project. The dispute arose from a falling out in mid-2012, leading to the termination of their contractual arrangements. The appellants sought relief based on the agreement for the Mackay project, while the respondents counterclaimed for profit share from the construction contracts completed by the termination date. The central legal issue was whether the respondents' entitlement to profit share arose upon the presentation of a construction contract for execution or upon the completion of the construction.

The court held that the primary judge's finding that the respondents' entitlement to profit share arose upon the presentation of a construction contract for execution was not supported by evidence or the pleadings. The evidence and the respondents' own pleadings indicated that the respondents had tasks and responsibilities extending beyond the presentation of the contract and up to the completion of the construction. Therefore, the respondents' entitlement to profit share did not arise until the completion of the construction contract. The court allowed the appeal, set aside the primary judge's declaration, and remitted the matter for further directions and orders. The court also ordered that the respondents pay the appellants' costs of the appeal.