Leeda Projects Pty Ltd v Zeng

(2020) 61 VR 384; [2020] VSCA 192

Victorian Court of Appeal

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For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Breach
3. › Damages
4. › Loss of use and enjoyment of property
5. › Builder's delay in completing works
6. › Whether owner entitled to damages for loss of use where no intention to reside or rent
7. › Whether rental value appropriate measure
8. › Whether wasted expenditure appropriate measure
9. › Robinson v Harman principle
10. › Hadley v Baxendale remoteness
1. Contract
2. › Breach
3. › Damages
4. › Wasted expenditure
5. › Payments made in respect of property during delay period without benefit to owner
6. › Whether expenditure incurred irrespective of breach recoverable as measure of loss of use
1. Practice and Procedure
2. › Appeal from Victorian Civil and Administrative Tribunal
3. › Appeal on question of law
4. › Powers of appellate court
5. › Whether court should decide issues or remit to Tribunal
6. › Considerations of convenience
7. › Victorian Civil and Administrative Tribunal Act 1998 (Vic), s 148(1), (7)

Quick Take

Commercial rental value is not the default measure of damages for loss of use of real property arising from breach of a building contract. Where the owner had no intention to reside at or rent the property, the appropriate measure may be the wasted expenditure incurred during the delay period (such as owners corporation fees, rates, and utility charges) from which the owner derived no benefit. The Mediana principle (that loss of use of a valuable asset is compensable even without tangible pecuniary loss) applies to real property in contract, but the measure of damages depends on the particular facts. On appeal from VCAT under s 148, the court may decide factual matters on uncontested evidence or primary facts already found by the Tribunal where convenient, but complex evaluative questions such as costs should ordinarily be remitted.