Morning Star (St Lukes Garden Apartments) Limited v Canam Construction Limited CA90/05

This is an appeal against a decision of the High Court allowing Canam Construction Ltd to amend its pleadings after the parties had closed their cases to include a counter-claim based on quantum meruit. The appeal is against both the granting of leave to amend and the Judge’s finding that Canam was entitled to be paid on the basis of a quantum meruit. There is also an appeal against the costs award made by the Judge.

The Court of Appeal dismissed the appeal and found that the Judge was correct in granting leave to amend and that Canam was entitled to be paid on the basis of a quantum meruit. The Court held that the DMA work was not carried out under the Working Together Agreement and that even if it had been, Canam could have had a reasonable expectation of payment. The Court also found that there was no prejudice to Morning Star in the granting of leave to amend. The appeal was dismissed and Morning Star was ordered to pay Canam costs of $6,000 in this Court, plus usual disbursements.