Beirne v Kidd

Case [2015] NZHC 2151


IN THE HIGH COURT OF NEW ZEALAND INVERCARGILL REGISTRY

CIV-2014-425-124 [2015] NZHC 2151

BETWEEN

GRAHAM HENRY BEIRNE

Appellant

AND

CHARLES EDWARD FRANCIS KIDD Respondent

Hearing: 25 August 2015

Appearances:

W J Hamilton for Appellant
R T Chapman for Respondent

Judgment:

4 September 2015

JUDGMENT OF MANDER J

[1]      The appellant, Mr Graham Beirne, imported a recreational camper vehicle (RV) from the United States.   He entered into a contract with the respondent, Mr Charles Kidd, to carry out modification work to reduce the width of the RV in order for it to comply with New Zealand standards.

[2]      Mr  Beirne  and  Mr  Kidd  subsequently  came  into  dispute  regarding  the standard of the work carried out and claims made by Mr Beirne of damage to the RV and  alleged  defects  in  workmanship,  which  Mr Beirne  was  required  to  remedy himself.

[3]      Mr Kidd sued Mr Beirne to recover the sum of $28,262.06 (including GST), representing the unpaid portion of the amount he had invoiced Mr Beirne for the work done.  Mr Beirne counterclaimed for the sum of $17,867.48 (including GST), for costs he claimed he had incurred to remedy Mr Kidd’s defective work and

damage.

BEIRNE v KIDD [2015] NZHC 2151 [4 September 2015]

[4]      The District Court allowed Mr Kidd’s claim in full.1   Mr Beirne was awarded

$3,128.62 on his counterclaim.

[5]      Mr Beirne has appealed the District Court’s award in favour of Mr Kidd, and

the refusal of the balance of his counterclaim.

Facts

[6]      There is no material dispute regarding the wider background facts.  After Mr Beirne imported the RV, he met Mr Kidd who advised that he had experience in modifying RV’s to meet New Zealand regulations.  The process involved cutting the vehicle in half, reducing the width of the vehicle by some 60 mm, and then reassembling the vehicle.

[7]      The parties first met at Rolleston, where the price discussed between them ranged from $18,000 to $30,000, but up to $35,000.  A second meeting took place at Mr Kidd’s farm in Winton, in April 2010, when the RV was taken to Mr Kidd for him to inspect.   The price discussed by the parties at that meeting was between

$18,000 and $35,000.   Mr Kidd accepted that he gave an upper price range of

$35,000 “tops”, and acknowledged he used that phrase in the conversation.  There is

no dispute that GST was not discussed at either meeting.

[8]      At the meeting at Mr Kidd’s farm, agreement was reached for Mr Kidd to carry out the work, and Mr Beirne left the RV with him for the modification to be carried out.  A matter in dispute between the parties is whether or not the range of price  discussed  was  inclusive  or  exclusive  of  the  cost  of  a  new  windscreen. Similarly, there is dispute as to whether the work to be carried out included painting of the parts of the RV that were to be affected by the work.

[9]      When the modifications were completed, Mr Beirne’s nephew picked up the…

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Beirne v Kidd [2015] NZHC 2151
Case
[2015] NZHC 2151
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CaseChat Overview and Summary

In Beirne v Kidd, Mr Beirne, the appellant, appealed against the decision of the District Court, which had allowed Mr Kidd's claim in full and dismissed Mr Beirne's counterclaim. Mr Beirne had engaged Mr Kidd to carry out modification work to reduce the width of his RV in order for it to comply with New Zealand standards. Mr Beirne subsequently alleged that the work carried out by Mr Kidd was defective, and that he had been required to remedy the damage himself. Mr Kidd sued Mr Beirne to recover the sum of $28,262.06 (including GST), representing the unpaid portion of the amount he had invoiced Mr Beirne for the work done. Mr Beirne counterclaimed for the sum of $17,867.48 (including GST), for costs he claimed he had incurred to remedy Mr Kidd’s defective work and damage. The issues on appeal related to the terms of the agreement between the parties, in particular whether an agreed maximum price for the work had been set, whether the price was inclusive or exclusive of GST, whether the work to be carried out included painting of the parts of the RV that were to be affected by the work, whether damage had been caused to the RV’s headlining, and whether Mr Kidd was liable for the cost of replacing the urethane around the windscreen. The Court concluded that there was an agreed maximum price for the work of $35,000, which included the cost of the windscreen. The price was GST inclusive. The painting was not included in the agreement. Mr Kidd was liable to remedy the damage to the headlining, by attempting to clean the headlining first, or by replacement. Mr Kidd was not liable for the cost of replacing the urethane seal around the windscreen. The District Court decision in favour of Mr Kidd was set aside, and Mr Kidd was to be awarded $22,167.48 (including GST). Mr Beirne was awarded an additional $4,571.25 (including GST) for the replacement windscreen. Mr Kidd was to be afforded the opportunity to clean the headlining, as outlined in the judgment. If this remedy proved unsuccessful, Mr Beirne was to be awarded $4,600 (including GST). Mr Beirne was awarded costs on this appeal.

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Background

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Decision

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