Thallon Mole Group Pty Ltd v Morton

The case of Thallon Mole Group Pty Ltd v Morton was heard in the Supreme Court of Queensland. The dispute involved a contract for the construction of a luxury residential property. The defendant terminated the contract for alleged breaches by the plaintiff, who claimed they were willing and able to continue performing the contract. The plaintiff sought payment for the works completed, while the defendant counterclaimed for the cost of rectifying defective works. The court was required to decide several legal issues, including the entitlement to progress payments, the cost of rectifying defective works, and the impact of estoppel in the face of statutory requirements.

The court examined the terms of the contract, the nature of the defects, and the cost of rectifying them. The court found that the plaintiff had not met certain specifications and that the contract price should be reduced accordingly. The court also considered whether the plaintiff was entitled to an extension of time for delays in performance and whether practical completion had been achieved. The court further assessed the plaintiff's claim for quantum meruit regarding works subject to variation and whether an agency by estoppel could override statutory requirements for written variations.

The court concluded that the plaintiff was not entitled to progress payments for works completed after the contract's termination. Regarding the counterclaim for defective works, the court held that the plaintiff was liable for the cost of rectification. The court found that estoppel could not override the statutory requirement for written variations. The court ordered that the retention monies be released to the plaintiff, subject to certain deductions for the cost of rectifying defective works. The court also directed the parties to exchange written submissions on costs.