Pool Data Systems Pty Ltd v Bayliss

Pool Data Systems Pty Ltd, the plaintiff, appealed to the Supreme Court from a decision of the Local Court which had found in favour of Bayliss, the defendant, in an action for payment of fees for a building report. The plaintiff claimed that the defendant had falsely represented that they had the qualifications necessary to produce an accurate building report, and that the report was defective and wildly inaccurate. The plaintiff sought the fees as well as interest and costs. The defendant denied the allegations and claimed that the plaintiff had not been induced to engage them by the alleged false representation, and that there was no formal agreement for the works. The Local Court found that the plaintiff had not been induced by the defendant's alleged misrepresentation, and that there was no formal agreement for the works. The court dismissed the plaintiff's claim for fees, interest and costs.

The Supreme Court found that the Local Court had made a finding not before it, which was an error of law. The court found that the plaintiff was entitled to a reasonable sum for the work done and expenses incurred, on a quantum meruit basis, as there was no formal agreement for the works. The court found that it was undesirable for the matter to be referred back to the Local Court, as the parties had had a full hearing before the Local Court, and there was no need for further evidence or argument. The court found that the defendant had not pleaded that the plaintiff's qualifications were not relevant to the work done, and that this was an error of law. The court found that the plaintiff was entitled to reasonable costs and expenses for the work done and expenses incurred.

The Supreme Court ordered that the defendant pay the plaintiff the sum of $15,000, being the reasonable value of the work done and expenses incurred, together with interest at the rate of 8% per annum from 1 April 2019 until payment, and the plaintiff's costs of the appeal to be paid by the defendant. The court dismissed the plaintiff's claim for interest and costs of the Local Court proceedings.