Schwanke v Alexakis; Camilleri v Alexakis

The Supreme Court of New South Wales, Court of Appeal, considered appeals by Schwanke and Camilleri against orders made by the primary judge in proceedings concerning a dispute over a property development. The primary judge had found that the respondents, Alexakis, had breached their contractual obligations to the appellants, Schwanke and Camilleri, in relation to the development of a property at 14-16 Ocean Street, Maroubra. The dispute centred on the failure of the Alexakis to complete the development in accordance with the terms of the contracts and the subsequent sale of the property by the Alexakis to a third party.

The central legal issues before the Court of Appeal were whether the primary judge had erred in finding that the Alexakis had breached their contractual obligations, and consequently, whether the Alexakis were liable for damages. Specifically, the court was required to determine if the Alexakis had repudiated the contracts by their conduct, and if so, whether the appellants had validly accepted that repudiation. The court also considered the appropriate measure of damages to be awarded to the appellants.

The Court of Appeal upheld the primary judge's findings. The court reasoned that the Alexakis' actions, including their failure to proceed with the development and their subsequent sale of the property to a third party without the appellants' consent, constituted a repudiation of the contracts. The court found that the appellants had validly accepted this repudiation, thereby entitling them to damages. The measure of damages was determined to be the loss of the bargain, reflecting the difference between the contract price and the market value of the completed units at the time of the breach.

The appeals were dismissed, and the orders of the primary judge were affirmed.