06.09.2021

How much does one truly deserve?

A critical analysis of the New Zealand and Australian High Courts' approach to quantum meruit claims within the construction industry

The Australian High Court case of Mann v Paterson Construction Pty Ltd and the New Zealand High Court case of Electrix Limited v The Fletcher Construction Company Limited both involved claims of non-contractual quantum meruit by contractors seeking compensation for services performed.  The judgments, which were issued one closely following the other, show the different ways the law of restitution has been understood and developed under Australian and New Zealand law. 

This essay makes the comment that:

  • In light of the Construction Contracts Act 2002, the New Zealand Court’s interpretation of quantum meruit as a mechanism to restore the plaintiff’s position rather than being exclusively tethered to unjust enrichment is the correct approach. 
  • Where there was an enforceable contract to begin with, the contract price should act as a cap on amounts recoverable in a quantum meruit claim. 
  • Conversely, where there was no enforceable contract to begin with, the amount recoverable should have regard to the project specific costs to ensure that a reasonable compensation is made to the plaintiff.  

To read Katie’s submission essay to the New Zealand Society of Construction Law Essay Prize 2021, please click here.

Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Mediation wide BW
Employment Law’s Dispute Resolution Process – Employment Relations Authority and Employment Court
In our last article, we introduced the dispute resolution process in the employment jurisdiction by discussing mediation – specifically, what mediation is and what to expect. This article discusses ...
17.04.2025 Posted in Employment
You’ve Been Served: Navigating the Use of Statutory Demands
An Introduction to Statutory Demands: A statutory demand is a legal document that is issued by a creditor (Creditor) to a debtor company (Debtor) demanding payment of a debt that is due and owing.  T...
15.04.2025 Posted in Insolvency and Restructuring
iStock  Succession Plan medium
Passing the Torch: Priming your Family Business for a Succession
As the first in a series of articles looking at the generational wealth transition and its impacts on business succession in New Zealand, Ben Hickson (partner, Corporate & Commercial) and John Kir...
07.04.2025 Posted in Corporate & Commercial & Private Wealth
Deciding to Wind Up? Observations on winding-up a trust from a recent High Court case
A trust can be a hassle and expensive to maintain.  So, it is not unusual for clients to reflect on whether a trust should be maintained. When settlors, Bert and Diana Queenin, decided to wind up the...
24.03.2025 Posted in Private Wealth
Mediation wide BW
Employment Law’s Dispute Resolution Process – Mediation
Navigating the dispute resolution process in the employment jurisdiction can be tricky. This article aims to spell out the key considerations for those involved in or contemplating mediation, which is...
24.03.2025 Posted in Employment
empty wallet finance concept
Amendment to the Crimes Act 1961: Intentionally not paying employees their wages now deemed theft
An amendment to the Crimes Act 1961 (Crimes Act) – the Crimes (Theft by Employer) Amendment Bill has been passed by Parliament and received Royal assent. It is now an enforceable provision of th...
14.03.2025 Posted in Employment
Time’s Up: Late Redelivery and the Assessment of Damages in Hapag Lloyd AG v Skyros Maritime Corporation and Hapag Lloyd AG v Agios Minas Shipping Company
The English Commercial Court gave an instructive judgment on the assessment of damages in Hapag Lloyd AG v Skyros Maritime Corporation and Hapag Lloyd AG v Agios Minas Shipping Company; an appeal brou...
11.03.2025 Posted in Trade and Transport
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.