Sayar v Al Shafi; Al Shafii v Sayar

Mohammad Sayar brought claims against Sam Al Shafii, related to a building and construction contract, in two separate proceedings. Mr Sayar alleged defective work, failure to provide certificates, and unjust termination of the contract. Mr Al Shafii denied the allegations and counterclaimed for amounts owing under the contract. The matters were heard together by the Building and Construction Commission in South Australia. The central legal issues revolved around whether the contract was validly terminated, the status of pre-termination claims, and the amount of damages payable. Additionally, the court had to determine if variations ordered were urgent and the appropriate amount recoverable for those variations.

The Commission found that the contract was not validly terminated, and Mr Sayar was entitled to complete the works. The court held that pre-termination claims were valid and should be paid. Regarding damages, the Commission determined that Mr Al Shafii was not entitled to claim for variations that were not urgent, and the amount recoverable for urgent variations was assessed. The Commission also noted that Mr Sayar had a duty to mitigate his losses, which impacted the final amount of damages awarded.

In summary, the Commission ordered Mr Al Shafii to pay Mr Sayar $2,973, while Mr Sayar was ordered to pay Mr Al Shafii $90,324. The orders also included detailed instructions for the submission of costs in both sets of proceedings. The net outcome of the two cases was that Mr Sayar owed Mr Al Shafii $90,324, to be paid within 14 days.