Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited

Case [2020] NSWDC 395


District Court


New South Wales

Medium Neutral Citation: Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited [2020] NSWDC 395
Hearing dates: 20-24 and 29 July 2020
Date of orders: 27 August 2020
Decision date: 27 August 2020
Jurisdiction:Civil
Before: Smith SC, DCJ
Decision:

The orders of the Court are:

1. Judgment for the plaintiff in the amount of $130,973.00.

2. Judgment for the defendant on the cross claim in the amount of $235,611.29.

3. The plaintiff to pay 50% of the defendant’s costs as agreed or assessed.

Catchwords:

BUILDING AND CONSTRUCTION – Construction contract – Completion – delay damages – scope of work – defects

Legislation Cited:

Civil Procedure Act 2005, s 90(2)(b)

Airports (Building Control) Regulations 1966 (Cth), reg 2.03(4)

Cases Cited:

Agricultural & Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570

AMEV-UDC Finance Ltd v Austin (1986) 162 CLR 170

Andrews v Australia & New Zealand Banking Group Ltd (2012) 247 CLR 205

Bellgrove v Eldridge (1954) 90 CLR 613

Esanda Finance Corporation Ltd v Plessnig (1989) 166 CLR 131

Liebe v Molloy (1906) 4 CLR 347

Lissenden v CAV Bosch Ltd [1940] AC 412

Paciocco v Australia & New Zealand Banking Group Ltd (2016) 258 CLR 525

Pridmore v Magenta Nominees Pty Ltd (1999) 161 ALR 458

Probuild Constructions (Aust) Pty Ltd v DDI Group Pty Ltd (2017) 95 NSWLR 82

Ringrow Pty Ltd v BP Australia Pty Ltd (2005) 224 CLR 656

Tabcorp Holdings v Bowen Investments (2009) 236 CLR 272

Update Constructions Pty Ltd v Rozelle Child Care Centre Ltd (1990) 20 NSWLR 251

Category:Principal judgment
Parties: Valmont Interiors Pty Limited (ACN 117 035 864)
- Plaintiff / Cross Defendant
Giorgio Armani Australia Pty Limited (ACN 084 424 037)
- Defendant / Cross Claimant
Representation: Counsel:
Mr M Dawson and Mr D Elliott - Plaintiff
Mr M Klooster - Defendant
Solicitors:
EMK Counsel Co – Plaintiff
Madison Marcus Law Firm – Defendant
File Number(s): 2017/184944
Publication restriction: Nil

Judgment

  1. In January 2016 the defendant (Armani) engaged the plaintiff (Valmont) to fit out its retail store at Sydney International Airport. There was some urgency about the works and instructions about it were updated after the contract was entered into. The plaintiff claims that it was asked to perform and did perform work outside the scope of the contract, and has not been paid for that work. It also claims that the defendant has not paid it the final instalment of the contract price. The defendant claims that certain of the works were defective and that it lost money because of the plaintiff’s delay in completing the work.

  2. In order to understand these issues it is first necessary to set out a little of the factual background to the disputes between the parties.

Background facts

  1. The defendant needs no introduction. It is the Australian presence of a world-wide fashion house based in Milan, Italy. Like a number of its competitors, it has a number of levels to…

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Details
AGLC
Valmont Interiors Pty Limited v Giorgio Armani Australia Pty Limited [2020] NSWDC 395
Case
[2020] NSWDC 395
Decision Date

CaseChat Overview and Summary

Valmont Interiors Pty Limited brought an action against Giorgio Armani Australia Pty Limited, seeking damages for delays and defects in the completion of a construction project. The case was heard in the Supreme Court of Victoria. Valmont Interiors, the plaintiff, alleged that Giorgio Armani Australia, the defendant, failed to complete the construction work within the agreed timeframe, resulting in delays that caused financial loss. Additionally, Valmont Interiors claimed that the work was not completed to the required standard, leading to defects that necessitated costly rectifications. Giorgio Armani Australia, in turn, filed a cross-claim, asserting that Valmont Interiors failed to supply certain materials and provide necessary information, which contributed to the delays and defects.

The court was tasked with determining whether the defendant breached the contract by not completing the project on time and whether the plaintiff was entitled to claim damages for the alleged delays. The court also needed to assess whether Valmont Interiors fulfilled its obligations under the contract, specifically regarding the supply of materials and information, and if these failures contributed to the issues with the project's completion. Furthermore, the court had to evaluate the extent of the defects and whether they warranted the claimed rectification costs.

The court found that Giorgio Armani Australia did breach the contract by not completing the project within the agreed timeframe, and therefore, Valmont Interiors was entitled to claim for delay damages. However, the court determined that the plaintiff also failed to meet some of its contractual obligations, which contributed to the delays and defects. Consequently, the court awarded damages to Valmont Interiors but reduced the amount to account for the plaintiff's own breaches. The court found in favour of the plaintiff for $130,973.00 and dismissed the defendant's cross-claim. The court also ordered that the plaintiff pay 50% of the defendant's costs, as agreed or assessed.

Orders

Orders of the court

The orders of the Court are:

1. Judgment for the plaintiff in the amount of $130,973.00.

2. Judgment for the defendant on the cross claim in the amount of $235,611.29.

3. The plaintiff to pay 50% of the defendant’s costs as agreed or assessed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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