Smith and Anor v Chesterton as administratix of the Estate of Southion deceased

The case before the court involved a dispute between the Smiths and Ms Chesterton, the administratrix of the estate of a deceased builder. The Smiths had entered into a building contract for the construction of a house, but the builder died before the project was completed. The Smiths terminated the contract and claimed they were not liable for further payments. Ms Chesterton sought payment for the work done, as well as costs to complete and rectify defects. The matter was initially decided by a tribunal, which ruled in favour of the Smiths, but they appealed this decision.

The key legal issue before the court was whether the Smiths were entitled to terminate the building contract following the builder's death, and if so, whether they were liable for the costs associated with completing and rectifying defects in the construction. The court needed to determine the enforceability of the termination and the Smiths' obligation to pay for the work done and to cover the costs of completing and rectifying defects.

The court found that the Smiths were not entitled to terminate the contract following the builder's death, as the contract did not contain a clause allowing for termination in such circumstances. The court held that the Smiths were liable for the work done up until the point of termination, as well as for the costs to complete and rectify defects. The court set aside the tribunal's decision and substituted its own, ordering the Smiths to pay Ms Chesterton the sum of $129,210.92 within 21 days, representing the progress payment plus interest. The court also allowed the Smiths' appeal and granted them leave to appeal the decision.