Sabouni v Revelop Building and Developments Pty Ltd

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Supreme Court


New South Wales

Medium Neutral Citation: Sabouni v Revelop Building and Developments Pty Ltd [2021] NSWSC 31
Hearing dates: 26, 27 November 2020 and 20 January 2021
Decision date: 02 February 2021
Jurisdiction:Equity
Before: Black J
Decision:

Plaintiff’s claim and Defendant’s Cross-Claim Dismissed

Catchwords:

CONTRACTS – construction contract – whether Plaintiff entitled to amount of second progress claim made prior to Defendant’s termination of contract – whether Defendant entitled to recover additional costs of construction works incurred after termination of construction contract with Plaintiff

Cases Cited:

- Broadway Plaza Investments Pty Ltd v Broadway Plaza Pty Ltd [2020] NSWSC 1778

-Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64

- DCT Projects Pty Ltd v Champion Homes Sales Pty Ltd [2016] NSWCA 117

- JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 at 243

-Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61

- Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623

- Mann v Paterson Constructions Pty Ltd (2019) 373 ALR 1; (2019) HCA 32

-McCrohan v Harith [2010] NSWCA 67

-Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 77 ALJR 768

- Re Hair Industrie Penrith Pty Ltd, Hair Industrie Merrylands Pty Ltd [2015] NSWSC 1578

-Ross T Smyth & Co Ltd v TD Bailey Son & Co [1940] 3 All ER 60

-Southern Cross Autoglass Pty Ltd v Protector Glass Industries Pty Ltd [2014] NSWSC 261

-Schindler Lifts Australia Pty Ltd v Debelak (1989) 89 ALR 275

-State of New South Wales v Moss (2000) 54 NSWLR 536

- Troulis v Vamvoukakis [1998] NSWCA 237

-Uszok v Henley Properties (NSW) Pty Ltd [2007] NSWCA 31

- Vanguard Financial Planners Pty Ltd & Anor v Ale & Ors [2018] NSWSC 314

Category:Principal judgment
Parties: Omar Sabouni (Second Plaintiff)
Revelop Building and Developments Pty Ltd (Defendant)
Representation:

Counsel:
Mr A R Vincent (Defendant)

Solicitors:
O Sabouni (Plaintiff) (self-represented)
HWL Ebsworth (Defendant)
File Number(s): 2018/393550

Judgment

  1. These proceedings involve claims in respect of the construction of a child care centre at Penrith in New South Wales. They were originally brought by the First Plaintiff, OSC Constructions Pty Ltd (“OSC”), against Revelop Building and Developments Pty Ltd (“RBD”) in the Local Court of New South Wales in December 2018. OSC and the Second Plaintiff, Mr Sabouni, filed an Amended Statement of Claim in April 2019 by which Mr Sabouni contended that he rather than OSC was the proper plaintiff. RBD filed an Amended Defence and Cross-Claim in June 2019; the proceedings were transferred to the Supreme Court of New South Wales in March 2020; and ultimately Mr Sabouni and not OSC pursued the claim against RBD, and RBD pursued a cross-claim against Mr Sabouni and not OSC. The proceedings were heard on 26 November 2020; were adjourned without a substantive hearing on 27 November 2020, by reason of a party’s illness on…

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Details
Case
[2021] NSWSC 31
Decision Date

CaseChat Overview and Summary

The matter before the court involved a dispute between Sabouni and Revelop Building and Developments Pty Ltd. The Plaintiff sought to recover the amount of a second progress claim made prior to the Defendant terminating the contract. The Defendant, on the other hand, sought to recover additional costs incurred after terminating the construction contract with the Plaintiff. The court was required to determine whether the Plaintiff was entitled to the amount of the second progress claim and whether the Defendant was entitled to recover additional costs incurred after the termination of the contract.

The court considered the terms of the construction contract between the parties, including the provisions relating to progress claims and termination of the contract. The court examined the evidence and submissions of both parties to determine whether the Defendant had valid grounds for terminating the contract and whether the Plaintiff had fulfilled the conditions necessary to be entitled to the second progress claim. The court also considered the principles of equity and the need for a fair and just outcome in the circumstances.

The court found that the Defendant had valid grounds for terminating the contract, and that the Plaintiff was not entitled to the amount of the second progress claim. The court held that the Defendant was entitled to recover additional costs incurred after the termination of the contract, subject to certain conditions. The court emphasised the importance of clear communication and adherence to contractual obligations in construction projects. The court ordered that the Defendant recover the additional costs incurred after the termination of the contract, subject to certain conditions and deductions.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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