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ARTICLE · 11 SEPTEMBER 2009

Court Upholds Builder´s Claim For Quantum Meruit

Norton Rose Fulbright Australia
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In November 2007, the Victorian Court of Appeal upheld the trial judge's finding that Kane was entitled to, and did, terminate the building contract at common law as a result of the developers' repudiation.

AustraliaReal Estate and Construction
John Sharkey
John Sharkey
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In 1999, Kane Constructions (Kane) entered into a building contract with developers for the development of a mixed residential and commercial property known as the Boilerhouse Project.

In November 20071, the Victorian Court of Appeal upheld the trial judge's finding that Kane was entitled to, and did, terminate the building contract at common law as a result of the developers' repudiation. The repudiatory conduct was constituted by, amongst other things, persisting in an incorrect interpretation of the contract, failing to pay the full amount of progress certificates, deducting liquidated damages from payments due and having recourse to a bank guarantee without any entitlement to do so.

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