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ARTICLE · 22 OCTOBER 2019

High Court decision limits scope for builders quantum meruit claims

Gilchrist Connell
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Builders must ensure compliance with contractual & statutory regimes regarding entitlements to payments so as to ensure payment.

AustraliaReal Estate and Construction
Samantha Hocking
Samantha Hocking
Ashleigh Allen
Ashleigh Allen
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Introduction

The High Court of Australia, in its recent decision in Mann v Paterson Constructions Pty Ltd [2019] HCA 32, has substantially restricted the circumstances in which a builder can claim on a quantum meruit basis following acceptance of a principal's repudiation of a building contract.

The main implication of this decision is that builders must ensure that they comply with the specified contractual and applicable statutory regimes in respect of entitlements to payments in order to ensure payment.

Facts

In 2014, Peter and Angela Mann (owners) engaged Paterson Constructions Pty Ltd (builder) to construct two residential units. The contract provided for staged payments.

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