Sim Development Pty Ltd v Greenvale Property Group Pty Ltd

Sim Development Pty Ltd sought to recover from Greenvale Property Group Pty Ltd the sum of $189,886 for consultancy services rendered in relation to a property development project. The dispute centred on the terms of a consultancy agreement between the parties, specifically regarding the consultant's entitlement to 20 per cent of the net profit from the project, the consultant's right to an hourly rate for work performed, and the method for making monthly advance payments. The case was heard in the Supreme Court of Victoria.

The primary legal issues for the court to decide were whether the consultant's net profit entitlement was contingent upon the completion of the project, and if the sale of the undeveloped property constituted the completion of the project. Additionally, the court had to determine the validity of the hours claimed in the consultant's invoice, as well as whether any additional hours worked compensated for the shortfall in the invoice. The court also needed to decide whether the monthly advance payments should be deducted from the hourly rate claim.

The court found that the consultant was entitled to 20 per cent of the net profit upon completion of the project, but since the project was not completed, this entitlement was not realised. The sale of the undeveloped property did not constitute the completion of the project. The court accepted some of the hours claimed in the invoice but rejected others, ruling that the additional hours worked did not compensate for the shortfall in the invoice. The court held that monthly payments made to the consultant were in advance and should not be deducted from the hourly rate claim. Regarding the Calderbank offers, the court held that it was reasonable for Greenvale Property Group to not accept the offers as they were unclear and incapable of acceptance, following the reasoning in Hazeldene’s Chicken Farm Pty Ltd v Victorian WorkCover Authority [No 2].

The court ordered that Sim Development Pty Ltd recover $75,000 from Greenvale Property Group Pty Ltd, representing the consultant's entitlement to an hourly rate for work performed. The court also ordered that Greenvale Property Group pay the costs of the proceeding, which included the costs of the Calderbank offers.