CLIENT
Residential Building Company (“Head Contractor”)

OTHER PARTY
Kitchen contractor (“Subcontractor”)

CONTRACT
Supply and install of kitchen and bathroom joinery

BREACH OF CONTRACT DAMAGES
$50,680.00 including GST

COURT ORDER
$50,680.00 including GST, Interest of $472.09 and Costs $1,769.50

The Subcontractor approached the Head Contractor claiming that it had successfully completed numerous kitchen and bathroom projects. It had one of its representatives explain in detail how the quality and timeframe could be adhered to.

The kitchen supply was delayed almost 2 months.

Once the kitchen and bathroom joinery did arrive onsite, it was apparent that there were numerous significant defects including chips, discolouration, doors being unable to be opened and missing joinery.

After 4 weeks of attempting to install the joinery, the kitchen contractor was unable to complete despite continued promises.

Under this contract, time is of the essence and LPF assisted the Head Contractor in legally terminating the contract. An independent building consultant was engaged to produce a detailed defects report.

A claim was made in the Magistrate’s Court against the Subcontractor and the directors personally. The claim was $50,680.00 for breach of contract and misleading and deceptive conduct. The Head Contractor obtained default judgment due to the Subcontractor’s failure to file a defence. The Subcontractor applied for a rehearing and the matter is now before the Magistrates’ Court.