State of New South Wales v Coya (Constructions) Pty Ltd; Coya (Constructions) Pty Ltd v State of New South Wales

The New South Wales Court of Appeal considered appeals and cross-appeals in proceedings between the State of New South Wales and Coya (Constructions) Pty Ltd concerning a contract for the construction of a school. The dispute arose from Coya's claim for payment for work performed, which the State had refused to pay, alleging that Coya had breached the contract by failing to complete the work within the stipulated time.

The Court was required to determine whether the State was entitled to terminate the contract due to Coya's delay, and if so, whether Coya was entitled to recover any payment for work done. Specifically, the Court had to consider the proper interpretation of the contract's provisions regarding time for completion and the consequences of delay, as well as the principles governing the recovery of payment for work performed under a contract that has been wrongfully terminated.

The Court found that the State's purported termination of the contract was invalid. It reasoned that the State had not complied with the contractual requirements for issuing a notice of default and allowing Coya an opportunity to remedy the breach before terminating. Consequently, the termination was a repudiation of the contract by the State. Applying the principles of contract law, the Court held that Coya was entitled to recover the value of the work it had performed up to the date of the State's wrongful termination, based on a quantum meruit basis, as the contract had been terminated before completion.

The Court ordered that the appeal by the State be dismissed and the cross-appeal by Coya be allowed. The judgment of the primary judge was set aside, and judgment was entered for Coya (Constructions) Pty Ltd for a sum to be assessed, representing the value of the work performed.