Alexanderson Earthmover Pty Ltd v Civil Mining & Construction Pty Limited [2021] QSC 86 [2021] 18 QLR
SUPREME COURT OF QUEENSLAND
CITATION: Alexanderson Earthmover Pty Ltd v Civil Mining &
Construction Pty Limited [2021] QSC 86
PARTIES: ALEXANDERSON EARTHMOVER PTY LTD ABN 98
100 496 937
(Plaintiff)
v
CIVIL MINING & CONSTRUCTION PTY LIMITED
ABN 18 102 557 175
(Defendant)
FILE NO/S: BS 13314 of 2017
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT:
Supreme Court at Brisbane
DELIVERED ON: 29 April 2021
DELIVERED AT: Brisbane
HEARING DATE: 27 November 2020
JUDGE: Brown J
ORDER: 1. Leave for the draft Fifth Further Amended Statement
of Claim is refused.
2. The Plaintiff is given leave to replead the Fifth Further
Amended Statement of Claim and to file a further
amended statement of claim in its present form subject
to the matters identified being rectified.
3. The Plaintiff is to file a further amended statement of
claim by 18 June 2021.
4. The Plaintiff is to pay the Defendant’s costs of the
application.
CATCHWORDS: PROCEDURE – CIVIL PROCEEDINGS IN STATE AND
TERRITORY COURTS – PLEADINGS – STRIKING OUT
– GENERALLY –– where a previous strike out application
had been brought – where orders were made to strike out
parts of the pleadings – where the plaintiff re-pleaded aspects
of the struck out pleadings – whether leave for the plaintiff to
file and serve a Fifth Amended Statement of Claim should be
refused – whether the plaintiff’s pleading remains deficient –
whether particulars pleaded are relevant pre-contractual
negotiations and factual matters relevant to identifying the
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surrounding circumstances of the transaction or extrinsic
facts relevant to resolving ambiguity
Alexanderson Earthmover Pty Ltd v Civil Mining &
Construction Pty Limited [2020] QSC 122, cited
Alexanderson Earthmover Pty Ltd v Civil Mining &
Construction Pty Limited [2019] QSC 259, cited
Australasian Medical Insurance Ltd & Anor v CGU
Insurance Ltd (2010) 271 ALR 142, cited
Barr Rock Pty Ltd v Blast Ice Cream Pty Ltd [2011] QCA
252, cited
Birbilis Bros Pty Ltd v Chubb Fire and Security Pty Ltd &
Ors [2018] QSC 3, cited
Barclay Mowlem Construction Ltd v Dampier Port Authority
(2006) 33 WAR 82, cited
BP Australia Pty Ltd v Nyran Pty Ltd (2003) 198 ALR 44,
cited
BP Australia Pty Ltd v Nyran Pty Ltd [2004] FCAFC 163,
cited
Built Environs WA Pty Ltd v Perth Airport (No 4) [2020]
WASC 382, cited
Codelfa Constructions Pty Ltd v State Rail Authority of NSW
(1982) 149 CLR 337, cited
DM Drainage & Constructions Pty Ltd (as trustee for DM
Unit Trust t/as DM Civil) v Karara Mining Pty Ltd [2014]
WASC 170, cited
Electricity Generation Corporation v Woodside Energy Ltd
(2014) 251 CLR 640, cited
Hydrofibre Pty Ltd v Australian Prime Fibre Pty Ltd & Anor
[2013] QSC 163, cited
John Doyle Construction Ltd v Laing Management
(Scotland) Ltd [2004] BLR 295, cited
John Holland Construction & Engineering Pty Ltd v
Kvaerner RJ Brown Pty Ltd (1996) 8 VR 681, cited
LBS Holdings P/L v The Body Corporate for Condor
Community Title Scheme 13200 [2004] QSC 229, cited
McGrath Corporation Pty Ltd v Global Construction
Management (Qld) Pty Ltd [2011] QSC 178, cited
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd &
Anor (2015) 256 CLR 104, cited
Partenreederei M.S Karen Oltmann v Scarsdale Shipping Co
Ltd [1976] 2 Lloyd’s Rep 708, cited
Santos Ltd v Fluor Australia Pty Ltd [2017] QSC 153, cited
Southern Cross Mine Management Pty Ltd v Enshan
Resources Pty Ltd & Ors [2004] QSC 457, cited
Terravision Pty Ltd v Black Box Control Pty Ltd (No 2)
[2015] WASC 66, cited
COUNSEL: M D Ambrose QC and C H Matthews for the Plaintiff
L Campbell for the Defendant
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SOLICITORS: Frigo Adamson Legal Group Pty Ltd for the Plaintiff
Clayton Utz for the Defendant
Introduction
[1] The Plaintiff seeks leave to file and serve the Fifth Amended Statement of Claim.
Leave is opposed by the Defendant. The Plaintiff contends that it has now repleaded
its case to address deficiencies previously identified in earlier strike out claims. In
particular, the Plaintiff contends that it has pleaded a conventional case in relation to
causation, rather than a global claim, where it was previously found there were global
elements in the previous claims.
[2] The question of whether or not leave should be refused is determined on the basis of
whether or not the pleading or allegations in question would be liable to be struck
out.1 The onus, however, falls on the Plaintiff to persuade the Court that leave should
be given.
[3] The Fifth Amended Statement of Claim (5FASOC) has been amended significantly
since I previously considered a strike out application by the Defendant.2 The
Defendant, however, contends that the 5FASOC remains deficient and leave should
be refused because of deficiencies in:
(a) the allegations of prior negotiations said to form the “pre-contract factual
matrix” against which the executed contract should be construed;
(b) the reliance on draft contracts exchanged during negotiations;
(c) the Plaintiff’s claims for standby and access delay which are still pleaded as
global claims and are objectively ambiguous;
(d) the particulars of standby and productivity that have been provided in the
Productivity and Standby Schedule, which is described as an excessively large,
complex and confusing spreadsheet to the draft 5FASOC;
(e) the claims for delayed completion which remain pleaded as global claims; and
(f) Labour and supervision damages claims which remain global claims.
[4] There are a number of complaints outlined by the Defendant in each category.
[5] In determining whether leave for the draft 5FASOC should be given or refused I am
conscious of the fact that the Court must determine whether the pleading fulfils its
basic function of identifying issues, disclosing an arguable cause of action and
apprising the defendant of the case it has to meet, rather than whether it complies with
all technical pleading rules.3 That said, a defendant is entitled to have a properly
pleaded case to which it can respond and which will not cause undue prejudice, cost
or delay through the parties being distracted by irrelevant allegations, or by not being
1 Birbilis Bros Pty Ltd v Chubb Fire and Security Pty Ltd & Ors [2018] QSC 3 at [15].
2 Alexanderson Earthmover Pty Ltd v Civil Mining & Construction Pty Limited [2020] QSC 122.
3 Martin CJ in Barclay Mowlem Construction Ltd v Dampier Port Authority (2006) 33 WAR 82 at [4]-
[8].
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able to identify the case it must meet. The present case is case managed which may
be relevant to the exercise of the Court’s discretion, as well as the fact that a case such
as the present will be subject to directions where the relevant evidence and issues
should be identified well in advance of trial. For the purposes of this application, the
Court assumes the facts pleaded to be true.
[6] I will not repeat the background of this matter in relation to previous strikeout
applications.4 While the interlocutory background has some relevance to the present
application, I am conscious of the fact that the draft 5FASOC must be judged
according to its terms and whether it discloses a reasonable cause of action, not
whether there are more conventional ways it could have been pleaded. I will address
each of the areas of complaint in turn.
Plaintiff’s reliance on prior negotiations and draft contracts
[7] The Defendant complains that the Plaintiff has pleaded a myriad of negotiations
between the parties in the months leading up to the parties executing the contract
(being the contract between the parties dated as being 13 October 2011 (the
Contract)) as particulars in paragraph 8 of the draft 5FASOC. These had previously
been included as relevant to an allegation of an antecedent agreement which has now
been abandoned. The Defendant claims the majority of negotiations pleaded are
irrelevant and would be inadmissible at trial.
[8] The Plaintiff contends that the particulars pleaded in paragraph 8 of the draft 5FASOC
are relevant pre-contractual negotiations and factual matters leading up to the entry
into the written terms of the Contract, which have been pleaded in detail to ensure that
the Defendant is not taken by surprise. It contends that the matters pleaded are relevant
on two bases:
(a) as part of the pre-contractual factual matrix identifying the surrounding
circumstances of the transaction, which are relevant to the commercial context,
purpose and object as known to the parties; or
(b) as pre-contractual matters which are extrinsic facts, which are relevant to
resolving ambiguity in the meaning of the terms of the Contract or the choice
of a “constructional choice.”
[9] In its supplementary submissions provided after the oral hearing, the Plaintiff
accepted that the following paragraphs in the 5FASOC are not relevant to the issue of
a particular objective fact: 8(a), 8(f), 8(i), 8(o)-(v)(inclusive), 8(x) and 8(y). The
Plaintiff however submits that other particulars do give rise to objective facts that are
relevant to the construction of the Contract, notwithstanding that they were the subject
of pre-contractual negotiations.
[10] The Plaintiff, in particular, relies on a number of matters arising out of pre-contractual
negotiations as constituting extrinsic facts relevant to construing “sufficient access,”
which is an undefined term in the Contract, or on the basis they are relevant to the
commercial purpose of the Contract.
4 Alexanderson Earthmover Pty Ltd v Civil Mining & Construction Pty Limited [2019] QSC 259;
Alexanderson Earthmover Pty Ltd v Civil Mining & Construction Pty Limited [2020] QSC 122.
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[11] The Defendant contends that the myriad of prior negotiations are not evidence of the
“factual matrix” or “surrounding circumstances,” but evidence of the antecedent oral
and written negotiations which exhibit the actual intentions and expectations of the
parties expressed during those negotiations. The Defendant contends that there is no
pleading of mutual intention or concurrence as to what would be “sufficient access,”
such that they could be admissible.
[12] The Plaintiff submits that, although the particulars of the negotiations in paragraph 8
are pleaded in a narrative style, some objective background facts may be found in the
parties’ actual mutual intention, from the following:
(a) Paragraphs 8(b) and (c) – The Defendant’s Tender Extract included quantities and
haul distances that could only be achieved with access across Beales Creek. That
was the basis upon which the Defendant undertook to do the work with the principal
(being its tender) and the basis on which it is alleged to have asked the Plaintiff to
match paragraph 8(e)(3). The relevant objective fact is the tender distance or
distances identified over which the material was to be hauled.
(b) Paragraph 8(d) provides context of the meeting referred to in paragraph 8(e).
(c) Paragraph 8(e) is relevant to the genesis or aim of the Contract. Further, it evidences
an objective fact known to the parties that the access points and crossings referred
to did not then exist and the distances identified in the Defendant’s Tender Extract
could not be achieved until they were provided.
(d) Paragraph 8(g) provides for mutually known background facts regarding the
manner in which the work was to be carried out, including access points and
crossings. The objective facts were:
(i) that the Pyealy and Beales Creek crossings were required to meet the OLC
distances in the Tender Extract;
(ii) that haul roads were required to carry out the work;
(iii) there would be three access points from the GPN Borrow Source to the
Bunds;
(iv) none of the matters in (i), (ii) and (iii) were in existence at that time; and
(v) none of the above subparagraphs would form part of the Plaintiff’s works.
(e) Paragraph 8(j) pleads an objective fact known to both parties that the schedule of
rates in Letter 1 were directly referrable to the relevant parts of the Tender Extract
(paragraph 8(b) and (c)), including with respect to identified distances.
(f) Paragraph 8(l) and (n) evidence objective facts known to the parties of the dates by
which the relevant works were required to be completed under the Head Contract,
including the end date of 20 March 2012.
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(g) Paragraph 8(w) evidences an objective fact that prior to the commencement date of
the Contract (also being prior to its execution), the parties knew there would be
delays with access to the site (also relevant to this issue are the particulars to
paragraph 28N).
[13] The Defendant concedes that paragraph 8(e)(i)(2) and 8 (e)(ii)(2) could potentially be
background objective facts. The Defendant however contends that the Plaintiff has
failed to plead any fact from which “mutual concurrence,”5 may be inferred as to the
haul distances or location of the haul roads, notwithstanding that the plaintiff by its
supplementary submissions, seeks to contend that there was “actual mutual intention”
as to how the work would be performed in very specific ways.
Determination
Relevant legal principles
[14] The legal principles in relation to extrinsic facts that may be relevant for the purpose
of construing a contract or identifying its commercial purpose are not the subject of
controversy between the parties for the purposes of this application. The controversy
is whether the facts pleaded could be characterised as such extrinsic facts, so as to be
arguably relevant.
[15] The Defendant contends that the allegations setting out pre-contractual negotiations
are raising immaterial or irrelevant issues. In that regard, it contends the proper
approach is that which was adopted in Terravision Pty Ltd v Black Box Control Pty
Ltd (No 2).6 In that case Le Miere J stated:7
“…Material is not struck out merely because it is irrelevant or
unnecessary. However, irrelevant or unnecessary material may be
struck out on the ground that it may prejudice, embarrass or delay the
fair trial of the action. Pleadings may be struck out on this ground
because they are evasive, they conceal or obscure the real questions in
controversy, they are ambiguous or not reasonably intelligible, they
raise immaterial or irrelevant issues, they fail to confine the issues or
state the case of the party in question with reasonable particularity, or
they raise a case in terms which are simply too general...”
[16] The scope for evidence of surrounding circumstances to be admitted in order to
construe words of a contract, or identify the commercial purpose of a contract in the
face of a detailed written contract, as in the present case, is naturally limited in the
absence of a claim for rectification, estoppel or misrepresentation.8
5 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 352-3; confirmed
by the Queensland Court of Appeal in Australasian Medical Insurance Ltd v CGU Insurance Ltd
(2010) 271 ALR 142 at [58]-[62].
6 [2015] WASC 66.
7 Terravision Pty Ltd v Black Box Control Pty Ltd (No 2) [2015] WASC 66 at [16].
8 Hydrofibre Pty Ltd v Australian Prime Fibre Pty Ltd & Anor [2013] QSC 163 at [39].
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[17] Mason J in Codelfa Construction Pty Ltd v State Rail Authority of NSW,9 stated that:
“…the evidence of surrounding circumstances is admissible to assist
in the interpretation of the contract if the language is ambiguous or
susceptible of more than one meaning.”
[18] The majority of the High Court in Mount Bruce Mining Pty Ltd v Wright Prospecting
Pty Ltd,10 at [48]-[52] described the process of construction to be adopted including
that:
[48] Ordinarily, this process of construction is possible by reference
to the contract alone. Indeed, if an expression in a contract is
unambiguous or susceptible of only one meaning, evidence of
surrounding circumstances (events, circumstances and things
external to the contract) cannot be adduced to contradict its plain
meaning.
[49] However, sometimes, recourse to events, circumstances and
things external to the contract is necessary. It may be necessary
in identifying the commercial purpose or objects of the contract
where that task is facilitated by an understanding “of the genesis
of the transaction, the background, the context [and] the market
in which the parties are operating”. It may be necessary in
determining the proper construction where there is a
constructional choice. The question whether events,
circumstances and things external to the contract may be
resorted to, in order to identify the existence of a constructional
choice, does not arise in these appeals.
[50] Each of the events, circumstances and things external to the
contract to which recourse may be had is objective. What may
be referred to are events, circumstances and things external to
the contract which are known to the parties or which assist in
identifying the purpose or object of the transaction, which may
include its history, background and context and the market in
which the parties were operating. What is inadmissible is
evidence of the parties’ statements and actions reflecting their
actual intentions and expectations.
[19] Pre-contractual negotiations have traditionally had a limited role in the interpretation
of a written contract. They are generally superseded by, and merged into, the contract
itself. The object of the parole evidence rule is to exclude them, the prior oral
agreement of the parties being inadmissible in aid of construction.11
[20] Mason J in Codelfa,12 stated that to the extent that prior negotiations have a tendency
to establish objective facts, which were known to both parties and the subject matter
9 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 352 followed for
example in Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd & Anor (2015) 256 CLR 104
at [47]-[52] and [108]-[110] cf Bell and Gaegler JJ at [119].
10 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd & Anor (2015) 256 CLR 104.
11 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 352.
12 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337.
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of the contract, they are admissible.13 Evidence of mutual intention, if amounting to
concurrence, may also be receivable to negate an inference sought to be drawn from
surrounding circumstances.14 However, statements and actions of the parties which
are reflective of their actual intentions and expectations are not admissible.15 An
exception to this is where the parties have refused to include in the contract, a
provision in the contract which would give effect to the presumed intention of persons
in their position.
[21] Where parties are said to have agreed on the meaning of a word or phrase in prior
negotiations, and share a mutual intention with respect to it, evidence of the
concurrence and the intention is admissible on the question of what the word or phrase
means.16 While objective facts can extend to statements or actions of the parties that
reflect the mutual intention of the parties, the mere communication by one party to
another of their subjective intention does not alone result in that subjective intention
becoming a mutually known objective background fact.17
[22] Surrounding circumstances known to the parties, and the commercial purpose or
objects to be secured by the contract, may also be relevant and admissible in order to
construe a commercial contract in order to avoid a result which could not have been
intended.18 The surrounding circumstances may include facts which assist in
identifying the purpose or object of the transaction. These may include its history,
background and context, and the market in which the parties were operating.19
[23] The question of leave for a pleading is not, however, determined on the basis of
whether evidence of allegations of facts referred to in a pleading will ultimately be
admissible. However, to the extent that evidence of the facts pleaded would be
inadmissible and are not relevant to the construction of the contract, that may cause
the Court to conclude that the allegations are irrelevant and have a tendency to delay
or prejudice the trial. This was the approach adopted by Le Miere J in Terravision,20
in relation to some pre-contractual negotiations sought to be relied upon in the context
a preliminary issue which was to be determined by the court in that case. While Le
Miere J did determine the relevance of prior negotiations to the proper construction
of a written contract in a strike-out application, the context in which it was decided
was of relevance to the making such a determination at a preliminary stage.
Are the prior negotiations relevant?
[24] Paragraph 8 of draft 5FASOC pleads that:
13 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 352.
14 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 353.
15 Save for cases where the actual intention of the parties is relevant such as rectification.
16 Australasian Medical Insurance Ltd & Anor v CGU Insurance Ltd (2010) 271 ALR 142 at [62]
referring to the case of Partenreederei M.S. Karen Oltmann v Scarsdale Shipping Co Ltd [1976] 2
Lloyd’s Rep 708.
17 Terravision Pty Ltd v Black Box Control Pty Ltd (No 2) [2015] WASC 66 at [21] referring with
approval to BP Australia Pty Ltd v Nyran Pty Ltd (2003) 198 ALR 44 and BP Australia Pty Ltd v
Nyran Pty Ltd [2004] FCAFC 163.
18 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 at [35] followed in
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd & Anor (2015) 256 CLR 104 at [47]-[50].
19 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 at [35].
20 Terravision Pty Ltd v Black Box Control Pty Ltd (No 2) [2015] WASC 66.
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“Between mid-August 2011 and on or about 13 October 2011, the
plaintiff and the defendant entered into negotiations in anticipation of
entering into a written contract of the purposes of undertaking work at
the Subject Property.”
[25] Various steps in the negotiations are then pleaded by way of particulars. It is not
expressly pleaded that the matters pleaded were objective facts known to both parties,
nor that the statements pleaded reflected the mutual intention of parties, although it
was asserted that some are relevant on that basis, as well as to the commercial purpose
of the contract.21 The fact it is pleaded in a narrative form, while perhaps thought to
be helpful from the point of view of providing a chronology, tends to obscure the
objective facts sought to be relied upon. The more appropriate form of pleading would
have been to have pleaded the objective background facts known by both parties and
which were the subject of mutual concurrence, or those facts said to be relevant to
purpose and object of a transaction, and for the negotiations to be pleaded as
particulars relevant to each of the matters relied upon.
[26] I will not consider 8(a),(f),8(i),8(o)-(v) inclusive, 8(x) or 8(y) of the 5FASOC on the
basis that the Plaintiff accepts that those paragraphs are not relevant to the issue of a
particular objective fact, and has not contended they are relevant in identifying the
commercial purpose or to the context of the contract. I will therefore not grant leave
in respect of those paragraphs of the draft 5FASOC.
[27] The Plaintiff contends that the remaining particulars of prior negotiations may be
admissible on the basis that they establish objective background facts known to both
parties, consistent with Mason J’s authoritative statements in Codelfa.22 The Plaintiff
appears to rely on the negotiations as being relevant to what it contends the Contract
provided in relation to haulage and the meaning of “sufficient access.”23 The
Defendant contends that the negotiations do not give rise to objectively known facts
even aside from the fact that the Plaintiff does not plead “mutual concurrence”.
[28] Paragraphs 8(b) and (c) refer to the Defendant’s Tender Extract which relate to the
Head Contract, which was provided by the Defendant to the Plaintiff. The Plaintiff
contends that the Tender Extract included quantities and haul distances to be part of
the work for which the Defendant sought to engage the Plaintiff. Paragraph 8(c)
pleads that the extract includes haul distances that could only be achieved with access
across Beales Creek. Assuming the allegation that the Tender Extract was provided
by the Defendant to the Plaintiff to identify the work which the Plaintiff was to carry
out is established, the Tender Extract could constitute an objective fact known to both
parties. However, the Plaintiff would have to show that it somehow reflects a mutual
intention of the parties in relation to this contract. The Plaintiff relies upon the Tender
Extract as relevant to the construction of the phrase “sufficient access.” Paragraph
8(c) identifies a particular part of the Tender Extract sought to be relied upon by the
Plaintiff, which is said to demonstrate that a haul crossing over Beales Creek was
necessary to achieve the quantities and haul distances. There is no express term in
the Contract specifying the location of any haul roads or how the work in the Schedule
Rates would be performed, which operates to exclude a contention that the Tender
Extract may contain facts in common contemplation by the parties and a basis of
21 Plaintiff’s outline of submissions, [29].
22 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337.
23 5FASOC, [112(c)], [109] and [26(b)].
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negotiations. Insofar as the access routes have not been specified in the Contract, and
the work to be performed by the Plaintiff was part of the work provided for under the
Head Contract, the Tender Extract may be relevant as an objective fact in determining
the meaning of “sufficient access” if the relevant preconditions can be established by
the Plaintiff. Given it is alleged the Tender Extract related to the work the Plaintiff
was to carry out for the Defendant, it may also be relevant to the commercial object
and purpose of the Contract. I am not persuaded that it is inarguable that it may be an
objective background fact relevant to the construction of “sufficient access,” nor that
its inclusion would have a tendency to delay or prejudice the trial. I do not consider
that leave should be refused in relation to the allegation.
[29] As to paragraphs 8(d) and 8 (e), paragraph 8(d) provides no more than some details
and the context of the meeting pleaded in paragraph 8(e). It is of no consequence to
the trial of the matter. Paragraph 8(e) is relied upon by the Plaintiff as being relevant
to the genesis or aim of the Contract, and to an objective fact that the access points
and crossings referred to did not exist at that time. It is further said that it is relevant
to an objective fact that the distances identified in the Defendant’s Tender Extract
could not be achieved until the access was provided.
[30] Paragraph 8(e) pleads matters that were discussed by the representative of the
Plaintiff and Defendant at the meeting and the provision of an overview of the project
and drawing and the location of planned works. The Defendant accepts 8(e)(i)(2) and
(ii)(2) may be objective background facts, but contends the balance of what was said
at the meeting by Mr Semmler reflected the Defendant’s subjective intentions as to
how the objective of the Contract could be achieved, rather than the genesis and aim
of the Contract.
[31] The Contract does not specify the location of any intended haul roads or how the work
identified in the Schedule of Rates was to be performed. The objective fact that the
access points and crossings did not exist could arguably be a relevant background fact
as to the Contract. While specific roads were described by the Defendant’s
representative, those roads appear to be no more than an expressed subjective
intention, unless it was a matter adopted by both parties, and the subject of the parties
mutual intention (which has not been pleaded). The nature of the roads discussed and
the Tender Extract may arguably be relevant to the meaning of “sufficient access,” or
at least to the genesis and aim of the Contract insofar as the discussions addressed the
type of access, if it was mutually adopted by the parties. In such circumstances, it
may be an objective fact relevant to the genesis and aim of the Contract in construing
“sufficient access.” While the Defendant submits that the objective facts of the
genesis and aim of a transaction may be admitted to show the attribution of a strict
legal meaning would make the transaction futile, the authorities seem to approach a
broader approach. However, before resort can be had to extrinsic evidence, there
needs to be ambiguity in the meaning of the words to be construed.24 The majority in
Electricity Generation Corporation v Woodside Energy Ltd,25 found that the meaning
of a term would require “…consideration of the language used by the parties, the
surrounding circumstances known to them and the commercial purpose or objects to
be secure by the contract,” and such an appreciation is facilitated by an understanding
of “the genesis of the transaction, the background, the context and the market in which
24 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd & Anor (2015) 256 CLR 104 at [46]-[52].
25 (2014) 251 CLR 640 at [35].
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the parties are operating.”26 Arguably, the phrase “sufficient access” is ambiguous.
The basis upon which the Plaintiff seeks to rely upon those matters has been identified
and is arguably relevant. Whether the Plaintiff will ultimately be successful at trial in
establishing the basis upon which it contends the matters are admissible when the
question of construction of the contract is properly ventilated is, however, another
matter.
[32] As to paragraph 8(g), the Plaintiff contends that it identifies mutually known
background facts as to the manner in which the work was to be carried out, including
access points and crossings. The exchange occurred in the context of it being a
response to an enquiry of a Plaintiff’s representative as to the scope of the work that
the Defendant was seeking to have the Plaintiff perform. The Defendant contends that
they are assertions of “objective facts” that the schedule of works would only be
performed in a particular way and are not a matter of mutual concurrence. It contends
the Plaintiff fails to distinguish between the negotiations regarding how the work was
to be performed, and truly objective facts. It contends that the negotiations were only
reflective of subjective intentions in the context of the Head Contract not having been
awarded. The Plaintiff does not plead that the matters referred to were expressly
adopted by both parties, but it does however plead that those matters were identified
by the Defendant in the context of it clarifying the scope of works. In that context, it
is possible that they may be mutually known background facts relevant to the
construction of the Contract, although not as contractual terms. The basis upon which
the Plaintiff seeks to rely on the exchange is arguably relevant.
[33] Paragraph 8(j) is said to be a mutually known fact by the Defendant and Plaintiff. The
fact that it was an objective fact known to both parties may be inferred from the fact
the Tender Extract was provided to the Plaintiff and at least relevant to the genesis
and aim of the Contract, given the schedule of rates replicates the rates in the Tender
Extract circumstances. It is tenuous, but I am not satisfied it is inarguable that it may
be relevant and established to be an objective fact known to the parties.
[34] Paragraphs 8(l) and (n) are said to be objective facts known to both parties by which
the relevant works were required to be completed under the Head Contract, which
were replicated in the Contract, the subject of these proceedings. The fact that it was
an objective fact known to both parties may be inferred from the circumstances even
though it has not been expressly pleaded. It is arguable that it has relevance to the
genesis of the present transaction. I am not satisfied it is inarguable that the allegations
may be admissible in accordance with established principle.
[35] While accepting that the circumstances in which prior negotiations will be admissible
in relation to the construction of the Contract are limited, I consider that the Plaintiff
has an arguable case for relying on the prior negotiations referred to above, insofar as
they are a basis for inferring the existence of a mutually known fact, which may have
been the subject of mutual concurrence, or as relevant to the genesis and aim of the
contract or in identifying mutually known facts relevant to the meaning of a
descriptive term which is ambiguous. The Plaintiff should identify the objective facts
which it contends were mutually known in relation to the particular prior negotiations.
Given it has identified the objective facts said to mutually known in its supplementary
submissions, that should not be a difficult process.
26 (2014) 251 CLR 640 at [35].
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12
[36] In regard to paragraph 8(w), the Defendant accepts that w(i) and (ii) may concern the
communication of objective facts, but states that (iii) concerns an irrelevant step in
the negotiations. I find that (iii) is an irrelevant allegation and is liable to be struck
out. It has not been contended by the Plaintiff that the position is otherwise.
[37] The Defendant complains that the reference in paragraph 28N to “and in course of
giving the aforesaid instruction indicated that the defendant would pay the plaintiff
for plant and equipment not able to be utilised on standby rates” and further what is
pleaded as an observation by the Defendant as to the state of readiness by the
Defendant in subparagraph 28N(c) is irrelevant. No collateral agreement, estoppel or
quantum meruit claim is relied upon by the Plaintiff. The allegation that the Defendant
stated the Defendant would pay the Plaintiff for the plant and equipment is therefore
irrelevant. Further the observation of the Defendant is not relevant to the allegation
and as such is not a particular of the allegation. The allegation is irrelevant and is
liable to be struck out.
[38] Leave should not be granted for paragraph 8(w)(iii) of the particulars, the paragraphs
in the particulars referred to in paragraph 26 above, or the matters in 28N identified
above in the draft 5FASOC. Subject to the Plaintiff amending the draft 5FASOC to
identify the objective fact, and the basis upon which it is inferred it was mutually
known or adopted by the parties as an objective fact, I will grant leave for the above
paragraphs to be maintained.
Draft contracts – 9 (c)
[39] The Defendant also contends that paragraph 9 is defective, in impermissibly
particularising various drafts of the Contract in pleading the date of entry into the
Contract. The Defendant contends that other than the final draft contract which was
sent for execution by the Defendant, the previous drafts are irrelevant.
[40] As to the pleading of the exchange of drafts of contracts, the Plaintiff contends that
they are relevant to the alleged date on which the Contract was entered into by the
parties which is the subject of dispute.
[41] The particulars of the allegation that the Contract was entered into on or about 14
November 2011 refers to the various draft agreements exchanged between the parties.
The Defendant contends that paragraph 9(c) (ix), which pleads that the Plaintiff sent
the revision of the written contract with a request that the Defendant sign the Contract,
is the only relevant particular of the allegation.
[42] Similar limitations apply to draft contracts being exchanged prior to the final contract
as apply to statements and actions of parties which are reflective of their actual
intentions and expectations.27
[43] The Plaintiff emphasised that it was not relying on the draft contracts to admit the
draft contracts themselves at trial but just to substantiate that the Contract was not
entered into until 14 November 2011. Other than the last draft contract that was sent
signed by the Plaintiff with a request to the Defendant to sign it, the other drafts
exchanged prior to that time are irrelevant to the allegation that the Contract was not
entered into until 14 November 2011. Paragraphs (i)-((vi) are liable to be struck out
27 Australasian Medical Insurance Ltd & Anor v CGU Insurance Ltd (2010) 271 ALR 142 at [57].
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13
on the basis they are irrelevant to the allegation. If the defence raises a matter which
could make the earlier exchanges relevant, then they may be raised by way of a reply.
Standby and Access Delay claims
[44] In the second strike out I determined, amongst other things, that the Plaintiff had
failed to adequately plead causation and parts of its claim which Justice Ryan had
previously identified as containing global elements in the Plaintiff’s claim for access
delays and claims for standby. The Plaintiff contends that it has now repleaded the
draft 5FASOC in a way that overcomes the previous deficiencies and that it can no
longer be contended that there are global elements in its claim or any objective
ambiguity which prevents the Court from giving leave for the filing of the draft
5FASOC.
[45] Some context is relevant to consideration of the claims.
[46] The Defendant entered into a contract with Wiggins Island Coal Export Terminal Pty
Ltd to complete building and civil works at the Wiggins Coal Export Terminal (the
Project).
[47] The Plaintiff was engaged as a subcontractor by the Defendant to undertake civil
works as part of the Project, which included excavating fill material from the GPN
Borrow Area, the OLC Cut and MC23, and hauling the excavated fill materials to the
Reclamation Bunds Area C, OLC Platform, Rail Receival Platform and Road
Embankment MC22 and placing and compacting the fill materials to the Reclamation
Bunds Area C, OLC Platform, Rail Receival South and Road Embankment MC22
and MC 32.
[48] The subcontract was a schedule of rates contract.
[49] According to paragraph 10(h) of the draft 5FASOC, the Defendant was obliged to
pay the Plaintiff standby rates while plant and equipment was unable to be utilised as
planned or at all.
[50] Part of the Plaintiff’s claim is that the Defendant was obliged to provide it with
sufficient access to the site to undertake its work. This included having access from
the GPN Borrow Source and the OLC Cut to the Reclamation Bunds C Site where
four sets of bunds were to be constructed consisting of earthen embankment of clay
and general fill materials over a rock drainage layer. The haulage of the material was
by dump trucks. There was a road from the OLC cut and another road from the GPN
Borrow Source, both of which connected with a road which lead to the Reclamation
Bunds C site. The road from the OLC cut is a straight road. There were two crossings
on the road, Beales Creek and Pyealy Creek. The Plaintiff’s claim also relates to work
at the Rail Receival South, but the Plaintiff contends that work did not hinge on any
connection to a haul road, given the complaint is that the Defendant failed to clear
and grub the area to provide the Plaintiff with sufficient access. The Plaintiff plead
that the process of construction of the Bunds depended on sufficient access being
provided to enable the Plaintiff to efficiently and productively haul the excavated fill
sourced from the GPN Borrow Area, OLC Cut and MC23 to the Bunds.
[51] The Plaintiff contends that it has divided the site into different work fronts and the
plant to be used for each work front. The Plaintiff contends it has then pleaded what
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14
has occurred in respect of access provided for different periods. In relation to the OLC
road, the Plaintiff contends it has now pleaded one factual basis for each breach of
sufficient access as a result of access not being provided over Pyealy Creek and then
up to Beales Creek, which each relate to different times. For the GPN haul road, there
was more than one physical cause for the failure to provide sufficient access insofar
as it is alleged the Defendant failed to provide three access points which included a
crossing at Beales Creek.
[52] The Plaintiff contends that it has now properly pleaded the causative effects of the
Defendant’s failure to provide “sufficient access” in its standby claims.28 The
Plaintiff’s case relies on the premise that, in the absence of any indication to the
contrary, a contractor is entitled to plan and perform the work as he pleases, provided
he finishes it by the time fixed in the contract. Thus, the proposed manner in which
the Plaintiff planned to perform the works under the Contract is the baseline under
which the claims for disruption and delay are to be considered. The Plaintiff’s
contention is that it has identified the particular breaches of the failure to provide
“sufficient access” on distinct work fronts, and the effect that breach had on the
Plaintiff’s ability to use its’ plant equipment and personnel by reference to its planned
productivity.
[53] The Plaintiff claims that the lack of sufficient access resulted in plant and equipment
being placed on standby, and causing delay in the Plaintiff achieving completion of
its works.
[54] The Plaintiff pleads that the Defendant was to provide and maintain sufficient access
to commence and undertake the works by 19 October 2011.29 It however also pleads
that work was to commence under the Baseline Programme:30
(a) by 2 October 2011 with sufficient access to the GPN haul road and OLC haul
road;
(b) on 15 October 2011 with sufficient access to the Bunds;
(c) on 2 November 2011 with sufficient access to particular sections of the OLC
cut;
(d) on 3 November 2011 with sufficient access to MC23 area; and
(e) on 17 November 2011 with sufficient access to the whole of the OLC cut.
[55] The Plaintiff has identified four groups of plant and equipment (and incidental
personnel), namely:
(a) Group A which was to have access to the GPN Borrow Area, GPN haul road
and Bunds from 15 October 2011;
(b) Group B which was to have access to the Rail Receival South by 28 October
2011 and then the OLC Cut and OLC haul road by 2 November 2011;
28 Paragraphs 33A -34CG and 39B - 40AA of the 5FASOC.
29 Paragraph 26(a) of the Statement of Claim.
30 Paragraph 32B which is said to have been provided by the Defendant to the Plaintiff and contained the
same dates and activities as the relevant work in the Baseline Programme for the Head Contract: [32C].
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15
(c) Group C which was intended to established to work on the Bunds on or about
31 October 2011 and then move to support the Group A and Group B plant on
or about 24 November 2011 to undertake Work on the Bunds and the OLC
Platform; and
(d) Group D which supported Group A work and after 17 November 2011 was to
provide support Group A, Group B and Group C plant.
[56] The Plaintiff alleges that the proposed plant and equipment was reasonable to achieve
or exceed Contract productivity, and complete the works by 12 March 2012 with
expedition and without delay.
[57] The Plaintiff alleges that there was a period of no access and then three further periods
of partial access. No issue arises for the purposes of this application as to the no access
period.
[58] The Plaintiff, by reference to the productivity which the Plaintiff was contractually
obliged to meet and the plant and equipment it planned to use to meet or exceed such
productivity compared to the actual productivity achieved, has identified for three
separate periods and for three separate work fronts, the GPN work front, the OLC
work front and Rail Receival South, the effect of the Defendant failing to provide
sufficient access caused plant and equipment to be placed on standby. In contrast to
the previous pleading, the Plaintiff contends the present pleading now identifies:
(a) The Defendant’s relevant breaches of the Contract in failing to provide
sufficient access to the distinct parts of the site prevented the Plaintiff from
utilising equipment as planned. The Plaintiff contends that other than the GPN
haul road there was one physical thing arose as a result of the breach for the
other parts of the site, namely the lack of access on the OLC haul road for the
OLC cut and the failure to clear at Rail Receival South. In relation to the GPN
haul road there was more than one physical thing which caused the breach,
namely a lack of access (which it is alleged should have been provided at three
access points) and the limitations on the access road which provided partial
access.
(b) The effect of the defendant’s breaches to the physical areas of the site.
(c) The causative effect of the Defendant’s breaches for the distinct work fronts at
the site, namely that the Defendant’s breach resulted in limited physical access
being available once partial access was given, a reduction in the daily
productivity said to be identified in the Productivity and Standby Schedule,
compared to the planned productivity for the particular work front, and the
Plaintiff not being able to use the plant and equipment (and operators) as
planned to achieve the planned productivity, resulting in the allocated group
plant and equipment being placed on standby.
[59] According to the Plaintiff, the cause of the plant and equipment being placed on
standby for the hours claimed was the Defendant’s failure to provide sufficient access
to an identified part of the site during a specified period. The calculation of the hours
of standby, being the causative effect of the Defendant’s breach, is determined by
reference to the difference between the actual productivity achieved and the planned
productivity for the particular work for each part of the site, during each period for
the each vehicle on a daily basis.
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16
[60] The Plaintiff accepts that the previous statement of claim, the Fourth Amended
Statement of Claim (4FASOC), provided that in each of the access periods the
Plaintiff had identified limited access areas across the whole of the site and claimed
that those limitations caused all the plant, equipment and personnel to be unable to
work and to be placed on standby. There was therefore global causation because the
Plaintiff had failed to disentangle the cause of the standby for the various plant and
equipment from the limitations on access across different work fronts on the site.
[61] Contrary to a previous concession in relation to 4FASOC, the Plaintiff now contends
that its standby claim is not a global claim.
[62] The Plaintiff contends that as it now pleads the case, it is similar to the case considered
by Flanagan J in Santos Ltd v Fluor Australia Pty Ltd.31 In that case, his Honour
rejected the contention that numerous breaches had been pleaded in relation to the
provision of AFC drawings in a “timely and progressive” manner, and that there was
a single global delay. In rejecting the contention that the pleading was of a global
claim, his Honour accepted the submission that there was one breach pleaded, namely
failing to provide the drawings by a particular time. The pleading of the time at which
various drawings were provided was to identify the critical delay to the performance
of the work which resulted in a delay by reference to days.32
[63] The Plaintiff submits that like the case of Santos Ltd v Fluor Australia Pty Ltd,33 the
Plaintiff’s case is now that the Defendant has breached the Contract in failing to
provide sufficient access to each of the work fronts by failing to provide the haul
roads, which resulted in physical limitations said to make good that plea that caused
it to not meet the planned, and in some cases contractual, productivity. According to
the Plaintiff, the identification of the physical attributes that make good that plea are
not a separate plea for breach, but are the physical elements of the breach. The
Plaintiff contends that each claim for each work front, the OLC, the GPN and Rail
Receival South, and for three distinct periods of time is a separate and distinct claim
and pleaded as such.34 The Plaintiff contends the lack of access, prima facie, had an
impact on its capacity to meet productivity, and the facts pleaded lead to a reasonable
inference that the breach alleged caused the entitlement to claim standby. The
Plaintiff contends it is a reasonable inference from the pleaded facts that the lack of
sufficient access would cause the lack of productivity and result in equipment being
placed on standby.
[64] The Plaintiff also relies on Built Environs WA Pty Ltd v Perth Airport (No 4),35 in
support of its contention that it has not pleaded a global claim. In that case, the
amended claim, the subject of a strike out application, was a resequencing claim
which was alleged to be a global claim. As Martin J pointed out in that case, in relation
to global claims and the application of the principles to a complicated set of
underlying facts, there is no bright line distinction.36 In that case, the defendant
31 [2017] QSC 153 with the late drawing claim being summarised at [35].
32 Santos Ltd v Fluor Australia Ltd [2017] QSC 153 at [37].
33 [2017] QSC 153.
34 In a similar way to what was said to be the case in Santos Ltd v Fluor Australia Ltd [2017] QSC 153
at [42].
35 [2020] WASC 382.
36 Built Environs WA Pty Ltd v Perth Airport (No 4) [2020] WASC 382 at [74].
-- 16 of 39 --
17
contended that the individual breaches gave rise to global impacts affecting
productivity. The plaintiff refuted this, contending that while the defendant did not
accept its methodology for measuring loss caused by the breach that was not a basis
for strike out. Martin J accepted the submission at an interlocutory level. His Honour
found that “The plaintiff, as I see it, has nailed its colours to the mast in terms of
seeking to show at a trial its substantial causative loss and damage arising out of the
defendant’s breach on the basis of its reasonable mitigation efforts in the face of the
alleged continuing co-operation breach by the defendant as regards Site access.”37
His Honour did not accept it was obvious that the plaintiff was running a global
damages claim. The Plaintiff, in the present case, contends it is in a similar position.
Defendant’s contentions
[65] The Defendant contends that the Plaintiff has not amended its previous claim in the
5FASOC sufficiently to overcome the fact that the access delays and standby claims
are still pleaded in certain respects as global claims. It also contends that the claims
are in some respects objectively ambiguous which prevents the defendant from
understanding the claim against it.
[66] Supporting the proposition that the standby claim consists of multiple interacting
events which cannot be disentangled, the Defendant contends that:
(a) The contractual obligation to provide “sufficient access” is not pleaded as a
single obligation to do something by a single date, but rather there are multiple
obligations pleaded to provide access to different parts of the site at different
times in accordance with the construction program and without delay. The
obligations are then said to be the subject of different breaches in each period.
(b) Although the Plaintiff has attempted to narrow the scope of the causal chain to
a particular group of plant and equipment working on a particular work front,
the claims still concern multiple interacting events in each access period which
have not been disentangled. It contends that the alleged breaches for each
“access period” are not a single breach of a single obligation to provide access.
(c) There is no one on one causal relationship pleaded between a particular delay
in access to parts of the site and the resulting standby of particular plant
claimed.
[67] The Defendant further elaborates on its contention, in paragraph 76 of its outline of
submissions, that the Plaintiff has failed to plead causation in a conventional way and
that elements of global causation remain. In summary, it contends that:
(a) no “one-to-one” causal relationship between any access delay and the alleged
resultant standby of any particular item of plant is pleaded;
(b) no single access delay is pleaded as having caused the Plaintiff to not meet the
planned productivity for a particular group of plant on a particular day “on a
particular work front” (which in turn is said to have caused particular plant in
that group to be on standby). Rather, the cause of standby is still pleaded on a
global basis, as demonstrated by the Plaintiff’s claim in respect of the Group B
plant in the 1st Partial Access Period pleaded at paragraph 33G where three
different breaches are pleaded;
37 Built Environs WA Pty Ltd v Perth Airport (No 4) [2020] WASC 382 at [75].
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18
(c) the Plaintiff’s reliance on alleged failures to provide the GPN haul road and the
OLC haul road, said to be a single cause of each distinct standby claim for a
group of plant, also contains inherent global elements. Each haul road is
defined in paragraphs 26(b)(iii) and 26(b)(iv) of the draft 5FASCOC as being
made up of different haul roads or access points such as Pyealy Creek and
Beales Creek, which the Plaintiff claims the Defendant was to provide so that
the Plaintiff had access to multiple parts of the site.
(d) the alleged failure to provide the GPN haul road is not a single cause of plant
and equipment in Group A being placed on standby but, in truth, is an allegation
of delays on two different haul roads which the Plaintiff alleges were to provide
access to two different parts of the site (or “work fronts”).38 The Defendant
therefore contends that the Plaintiff has not disentangled which of those two
particular access delays caused particular plant in Group A to be on standby;
(e) the Plaintiff’s failure to disentangle the claimed effect of delays to each haul
road on the utilisation of particular plant in Group A is evident if the Plaintiff
does not prove, for example, that the Defendant was required to provide one or
other of those haul roads. There is no basis upon which the Court could discern
the extent of the shortfall in productivity and resulting standbys were caused
by which access delay. Further, it contends that access via the Beales Creek
haul crossing affects both the GPN haul road and the OLC haul road and is
alleged to have caused standbys in both of Groups A and B; and
(f) There is a global allegation of causation which affects both of those groups,
which also affects the two groups of support plant in Group C and D, which are
said to have suffered an alleged lack of productivity and resulting standby due
to the access delays affecting each of Groups A and B rather than a single cause
of standbys claimed in those groups..
[68] The Defendant contends that the claim for standby is still made on a global basis
without disentangling the factual causes on standby. It contends that the Plaintiff
refuses to acknowledge that it is impossible or impracticable to identify with
sufficient specificity the causal link between each access delay and the item of plant
or personnel on standby, which it had previously stated was the case in respect of the
second strike-out application. According to the Defendant, it is still being asked to
intuit which of the individual access delays affected particular items of plant and
equipment which required that item of plant or equipment to be placed on standby.
[69] It contends the Plaintiff has pleaded a multifaceted set of obligations including an
obligation to both initially provide and then maintain “sufficient access” by 19
October 2011, but it is then further pleaded in paragraph 32D that the Defendant was
to provide particular haul roads at specific locations around different parts of the site,
with reference to its Baseline programme at different times.
[70] The Defendant further contends that while the Plaintiff has sought to articulate its
standby claims by reference to particular groups of plant in each period, by reference
to planned productivity of different groups of plant to be utilised on different parts of
38 Access from the GPN Borrow source to the western side of the Bunds and second to a haul crossing
across Beales Creek.
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19
the site,39 there is no causal link identified between specific plant and equipment and
the cause of delay.
[71] The Defendant contends that the position is exacerbated by the fact that the Plaintiff
alleges that the plant and equipment in Group As and B were interchangeable, which
implicitly acknowledges that such plant was interchanged. It is another example
where causation has not been disentangled. The unidentified interchange of plant and
equipment in circumstances where different access delays are said to have impacted
different groups of plant, the causal effect being particular plant being placed on
standby and claimed at a particular rate, is said to be claimed globally and is
objectively ambiguous and confusing.
Standby Claims pleaded in the draft 5FASOC
[72] The structure of the draft 5FASOC, with respect to the failure to provide access and
the standby claims, has been canvassed to a certain extent already. Paragraph 26(a)
pleads that the Defendant was to provide and maintain sufficient access for the
Plaintiff to commence and undertake the work by 19 October 2011. It particularises
a number of terms of the contract to support a single obligation of providing and
maintaining sufficient access. In paragraph 26(b) the Plaintiff pleads alternatives
allegations to what was required to be provided for sufficient access, including:
“(iii) the provision of a hall road from the GPN Borrow Source to:
(A) the western side of the Reclamation Area C at chainage
2750;
(AA) with two access points from the aforesaid haul road
to Reclamation Area C Bunds; and
(BB) which was wide enough to permit 50 T dump
trucks to pass each other in opposite directions for
the length of the hall road; and
[the Main haul road]
(B) the Beales Creek Crossing located on the OLC hall road
(infra) [the Power Easement haul road];
(C) the Power Easement hall road which was to be wide
enough to permit 50 T dump trucks to pass each other in
opposite directions for its length.
[the GPN haul road]
…
Further or in the alternative:
(iv) the provision of a haul road from the OLC Cut to the southern
side of Reclamation Area C Bunds immediately adjacent to the
Gladstone-Mt Larcom Road:
39 Group A, B, C and D with Group C plant being planned to work with both groups A and B in placing
fill at different locations and Group D plant planned to work in support of all of Groups A, B and C.
-- 19 of 39 --
20
(1) complete with crossings of Pyealy Creek and
Beales Creek; and
(2) was wide enough to permit 50 T dump trucks
to pass each other in opposite directions for
the length of the OLC haul road (infra);
[the OLC haul road]
…
Further or in the alternative:
(v) relevantly to this proceeding, the provision of the rail receival
South area such that it was cleared and grubbed of all vegetation
and stripped of topsoil
[the Rail Receival South];
…
Further or in the alternative:
(vi) the provision of the aforesaid GPN haul road and OLC haul road
were required to permit plant travel sufficient to allow the
plaintiff to meet the Contract Productivity, including being wide
enough to permit 50 T dump trucks to pass each other over the
full length of each of the GPN Haul Road and OLC Haul Road.
…”
[73] Paragraph 27 pleads that a failure to provide and maintain sufficient access was a
breach of contract and was a “stop work, delay commencement of work or reason
beyond the plaintiff’s control resulting in a standby of plant, equipment of personnel
for which it was entitled to be remunerated under the contract.”
[74] Paragraphs 28G and 28H plead how the plaintiff planned to achieve the relevant
productivity, by reference to the use of equipment for each of the OLC Cut and GPN
Borrow Source to the Bunds. The Plaintiff pleads that it planned to mobilise and utilise
four groups of plant which it identifies as Groups A, B, C and D to achieve or exceed
the contract productivity.40 The plant (and personnel) referred to in Groups C and D
provided follow up work to the substantive work carried out by Groups A and B. The
plant and equipment in Group A was said to be planned to undertake the excavation,
haulage, fill and compaction fill from the GPN Borrow Area to the Bunds. The plant
and equipment in Group B was to initially undertake similar work at the Rail Receival
South after 10 November 2011 to 23 November 2011. From 24 November 2011 it was
to undertake similar work in respect of the OLC Cut and MC 23 to the OLC platform
and the Bunds. Upon completion of the work relating to the excavation from the OLC
cut/MC 23 on or about 4 February 2012, the Group B plant was also to undertake
excavation, haulage, fill and compaction work from the GPN Borrow Source to the
Bunds in conjunction with Group A plant.41
40 Access from the GPN Borrow Source to the western side of the Bunds and second to a haul crossing
across Beales Creek.
41 Group A, B, C and D with Group C plant being planned to work with both Groups A and B in placing
fill at different locations and Group D plant planned to work in support of all Groups A, B and C.
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21
[75] Paragraph 28I pleads that the plant in each of the Groups was planned on the number
of vehicles required to achieve the planned productivity but individual vehicles were
not allocated to particular groups.
[76] Paragraph 28L pleads the planned use of the plant over the course of the Project.
Paragraph 28M pleads the planned use of the plant and equipment was reasonable to
achieve or exceed the contract productivity, complete the works by 20 March 2012,
and complete the works with due expedition and without delay.
[77] Paragraphs 28N to 32 plead allegations in relation to the mobilisation of the
equipment.
[78] Paragraphs 32B – 32D plead that there was a Baseline Programme submitted by the
Defendant for Wiggins Island Coal Export Terminal Pty Ltd’s approval, which was
the same as the Baseline Programme issued to the Plaintiff by the Defendant under
which work was to commence with different dates for different areas. Paragraph 32E
pleads that by 2 November the Plaintiff had mobilised to the subject property and
established sufficient plant and equipment sufficient to commence work required to
be commenced on that day by reference to the matters in paragraphs 32D(a), (b) and
(c).
[79] Paragraphs 33A – 33AB plead that there was a breach in failing to provide sufficient
access due to no access being provided with respect to the GPN haul road, OLC haul
road, or the clearance at the Rail Receival South. This is not the subject of
controversy.
[80] Paragraph 33C pleads that between 23 November 2011 and 16 December 2011, the
Defendant, in breach of obligations pleaded in paragraph 26(a), (b) (or alternatively
(ba)) and paragraph 32D, the Defendant had not provided “sufficient access” as the
Defendant had not constructed the GPN haul road, the OLC haul road and had failed
to clear and grub vegetation and strip the topsoil at the Rail Receival South. Paragraph
33D pleads that during that period, the Plaintiff was limited in carrying out its work
under the subcontract due to the fact that the access to the GPN haul road was only
partial because there was only access to the Bunds at one access point, and the
Defendant was constructing safety berms to the GPN haul road, which limited the
ability to use the access road. Both those limitations affected the ability of the Plaintiff
to carry out its work. In addition to partial access, the GPN haul road was trafficable
by a single lane only at reduced speeds. In relation to the OLC road, it is pleaded the
Plaintiff only had access to, but not beyond, Pyealy Creek. Further, it is pleaded that
the Defendant had failed to clear and grub all vegetation and strip the topsoil at Rail
Receival South.
[81] Paragraph 33E pleads that the Plant A plant and equipment could not be utilised as
planned as a result of the failure to give sufficient access and the limited access, thus
identifying the physical circumstances giving rise to the breach.
[82] Paragraph 33F of the draft 5FASOC pleads that the Defendant’s breach in failing to
provide sufficient access to the GPN haul road caused:
(i) limited physical access between the GPN and the Bunds to one access
point to haul and fill from the GPN Borrow Source and at a reduced
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22
speed to that planned, which prevented the Plaintiff from achieving its’
GPN Planned Productivity (and indeed the Contract Productivity);
(ii) a reduction in the daily productivity for the Group A plant identified in
the Productivity and Standby Schedule as against the GPN Planned
Productivity;
(iii) the Plaintiff to be unable to meet the Contract Productivity and its GPN
Planned Productivity; and
(iv) the Group A plant and equipment to be utilised was less than had been
planned, resulting in standby as set out in the Productivity and Standby
Schedule for reasons beyond the Plaintiff’s control.
[83] It is further pleaded in paragraph 33F rather awkwardly that “the Group A plant and
hours of standby required by reason of not being able to be utilised as planned by
reason of the matters pleaded in paragraphs 33C(a) and 33F (a) to (e) are identified
in the Productivity and Standby Schedule.” It is pleaded that the lack of sufficient
access and limited access provided were matters beyond the Plaintiff’s control and
caused by the Defendant. As a result of the matters pleaded, it is further alleged the
Plaintiff was entitled to be paid standby. The value of the standby is $176,919.75,
which is particularised in the Productivity and Standby Schedule.
[84] Paragraphs 33G and 33H similarly plead the effect of the limited access to the OLC
haul road on productivity and the utilisation of equipment in Group B plant and
equipment which could and could not be utilised in the first partial access period.
Reference is made to the Rail Receival South but, according to the Plaintiff, that is
not part of the claim for the OLC cut,42 and is a standalone claim which is pleaded in
paragraphs 35-35D of the draft 5FASOC.
[85] Paragraphs 33I and 33J plead that the limited access of the GPN and OLC haul roads
affected the work that could be carried out by the Group C plant and equipment at the
Bunds and OLC platform and the need for Group D plant and equipment to carry
operators and other matters such as fuel to maintain the Group A, B and C plant and
to supervise the work.
[86] The Plaintiff does not plead that a separate physical element affected them directly.
The Plaintiff contends that Group C and D were affected, and their productivity was
consequentially affected by the loss of productivity to groups A and B, because they
were providing support to, and could only work to the extent that each of those groups
were productive. The standby is pleaded on the basis that their utility commensurately
fell with the loss of productivity caused by Groups A and B.
[87] The draft 5FASOC adopts a similar formula for the OLC haul road in regards to the
standby caused for the Group B plant in paragraphs 33G and 33H.
[88] Paragraph 33I and 33J plead the flow on effect for the Group C plant, insofar as it
was not able to be utilised for work in relation to the Bunds for the GPN haul road
and for work in relation to the OLC haul road for the OLC planned productivity in
the spreading and trimming of drainage rock, fill and batters at the Bunds and OLC
42 In fact, it appears to have been referred to because it was intended that Group B plant and equipment
be used at Rail Receival South until 23 November 2011.
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23
platform. It claims that, as a result, hours of standby were required for the Group C
plant. It then follows a similar formula to that described in relation to the GPN haul
road. Paragraph 33J pleads the claim for standby for Group D plant in a similar
manner due to the reduced need for Group D plant to carry operators to and from the
relevant area, carting fuel to and maintaining the Group A, B and C plant, and
supervising the work as a result of the reduced actual productivity of Groups A, B
and C plant.
[89] The second partial access breach from 16 December 2011 to 2 February 2012, follows
the same formula for the GPN haul road, the OLC haul road and for the Group C and
D plant.
[90] The draft 5FASOC pleads a third partial access period breach, affecting both the GPN
haul road and the OLC Cut, particularly as a result of the lack of crossing at Beales
Creek, from 2 February 2012 to 18 February 2012. However, no standby is claimed
in respect of that period (see paragraph 34I).
[91] The effect on Rail Receivals South access is separately pleaded in paragraphs 35 –
35D which, amongst other things, pleads that the Plaintiff could not carry out its plan
to mobilise Group B plant to carry out work at Rail Receivals South between 10
November 2011 and 23 November 2011, as pleaded in paragraph 28I(b), due to the
failure of the Defendant to clear the vegetation. According to the Plaintiff’s claim, it
was not until 12 January that the Defendant notified the Plaintiff that work could not
commence until 23 January 2012 but in fact access to the area was not provided until
9 February 2012. That access was subsequently was withdrawn until 28 March 2012.
The Plaintiff contends it had to deploy other equipment because Group B plant and C
plant were being used for OLC cut and MC 23. The claim for standby relates to other
equipment mobilised on 24 January 2012.
Determination
[92] It is uncontentious that a Plaintiff generally must plead the causal connection between
an alleged breach and a loss or contractual entitlement. As described by Douglas J in
LBS Holdings P/L v The Body Corporate for Condor Community Title Scheme 13200:43
“… [F]acts must be set out which lead to a reasonable inference that
the acts complained of and the loss claimed stand to each other in the
relation of cause and effect and that the plaintiff must plead the
necessary facts showing that causal link …”
[93] The Plaintiff contends that it has now pleaded a conventional case as to causation in
respect of the access delay and standby claims.
[94] The Defendant, however, contends that the real position is that the claim still suffers
from global causation, with the Plaintiff seeking to raise a global claim without
pleading what is required to establish such a claim, namely that it is impractical to
43 [2004] QSC 229 at [3] referred to by Chesterman J in Southern Cross Mine Management Pty Ltd v
Ensham Resources Pty Ltd & Ors [2004] QSC 457 at [15].
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24
disentangle that part of the loss which is attributable to each head of claim and that
the situation has not been brought about by delay or other conduct of the claimant.44
[95] Beech J in DM Drainage & Constructions Pty Ltd v Karara Mining Ltd (as trustee
for the DM Unit Trust t/as DM Civil),45 described the nature of a “global claim” and
a “modified total costs claim” as follows:
“[36] A global claim is one in which a plaintiff claiming under a
construction contract contends that there were multiple
interacting events for which the defendant is responsible and,
rather than attempting to identify (if it were possible) the precise
loss from each event, the plaintiff pursues a claim for the global
loss which the plaintiff says was caused by all the events for
which the defendant is responsible.
[37] A total costs claim is where a contractor alleges against a
principal a number of breaches of contract and quantifies its
global loss as the actual cost of the work less the contractually
expected cost.
[38] A modified total costs claim is where the contractor divides up
its additional costs, and claims that the whole of one or more
parts of those costs is the result of events for which the principal
is contractually responsible.”
[96] In the context of discussing global claims and total cost claims, Beech J in DM
Drainage & Constructions Pty Ltd (as trustee for DM Unit Trust t/as DM Civil) v
Karara Mining Ltd,46 referred to the oft quoted observations of Byrne J in John
Holland Construction & Engineering Pty Ltd v Kvaerner RJ Brown Pty Ltd & Anor,47
that the question whether, in a given case, a pleading based on a global claim, or even
a total cost claim or some variant of this, is likely to or may prejudice, embarrass or
delay the fair trial of the proceedings, must depend upon an examination of the
pleading itself and the claim which it makes. Byrne J in John Holland,48
acknowledged the burden which a total cost claim placed upon a defendant and stated
that the Court must exercise its power to ensure that the burdens of litigation, as far
as possible, are not unreasonable and unreasonably imposed.
[97] Whether or not the claim is pleaded as a global claim is of significance to both parties.
If a claim is regarded as a global claim, then the Plaintiff must prove that there were
no other material causes for the claimed delay or standby, other than those attributable
to the Defendant in order to succeed. The Defendant may defend the case by
demonstrating that the inference that the breaches and nothing else caused all the
alleged standby and delay cannot be sustained by establishing one or more other
causes. In contrast, if the Plaintiff’s pleading is accepted as sufficient to plead
44 John Holland Construction & Engineering Pty Ltd v Kvaerner RJ Brown Pty Ltd (1996) 8 VR 681 at
[15]; John Doyle Construction Ltd v Laing Management (Scotland) Ltd [2004] BLR 295 at [12];
McGrath Corporation Pty Ltd v Global Construction Management (Qld) Pty Ltd [2011] QSC 178 at
[127].
45 [2014] WASC 170 at [36] – [38].
46 [2014] WASC 170 referred to in Santos Ltd v Fluor Australia Pty Ltd [2017] QSC 153 at [21].
47 (1996) 8 VR 681.
48 John Holland Construction & Engineering Pty Ltd v Kvaerner RJ Brown Pty Ltd & Anor (1996) 8 VR
681.
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25
causation, the Defendant must plead by way of defence its basis for denial as to why
the matters alleged were not causative. That may involve it having to allege what it
contends was the cause or were the other causes that led to the standby of plant and
equipment and delays claimed by the Plaintiffs.
Multiple Breaches Interacting?
[98] The Defendant contends that the Plaintiff relies on not a single obligation to provide
sufficient access but rather, a multifaceted set of obligations. The Plaintiff asserts,
however, it is a single obligation, albeit that it relies on various clauses in the
contract.49
[99] The Defendant contends that the allegation in paragraph 26 pleads various
combinations and permeations of what constitutes “sufficient access”.50 Paragraph
33C also refers to “obligations” which, according to the Defendant, demonstrates that
there is not a singular breach, but rather that there are multiple different obligations
which are the subject of multiple breaches. According to the Defendant, they are not
able to be disentangled in terms of the causative effect of any loss as a result of various
breaches. The Plaintiff contends, and I accept, that it is apparent from the subsequent
division of the pleading for each work front for each period that paragraph 33C pleads
the breach of the provision of sufficient access for each work front which is then
specifically addressed in the paragraphs which follow.
[100] The Defendant contends, therefore, that the Plaintiff’s case is not based on a singular
obligation to provide sufficient access to commence and undertake work by 19
October, but different obligations to provide access and haul routes to different parts
of the sites at different times in accordance with the construction program to complete
the works.51
[101] There is some confusion in the way that the Plaintiff has pleaded its case. That has,
to some extent, permeated its submissions which refers to is a singular breach, namely
not providing sufficient access to all parts of the worksite in which the Plaintiff was
to undertake work by 19 October 2011, but in other parts of the statement of claim
suggest that there are different breaches for separate parts of the site at different times.
By way of submissions for reply, the Plaintiff’s counsel submitted that they did not
assert that there was only one breach of contract. Its argument is that for each of the
separate work fronts in a particular period, there is a separate breach and what flows
from that separate breach is the lack of a particular physical access which it contends
resulted in the lack of productivity (specific to the particular work front) which
resulted in the equipment being placed on standby. Understood in this context, the
reference to “obligations” in paragraph 33C is readily understood given the fact it
relied upon the fact sufficient access has not been provided by either the GPN haul
road, the OLC Cut or the Rail Receival South which are each separate breaches.
[102] There is also confusion in the pleading insofar as paragraph 26 pleads that there was
an obligation to provide sufficient access by 19 October 2011, whereas paragraph
32D suggests that there was an obligation to provide access to different parts of the
49 Plaintiff’s Written outline, [65] – [67].
50 Draft 5FASOC, [33C].
51 Defendant’s Outline of Submission, [71].
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26
site by different dates. Both are relied upon by the Plaintiff in forming part of the
overall breach (as described by the Plaintiff in paragraph 33C).52 According to the
Plaintiff, all of the dates in paragraph 32D precede the period when work could
commence, presumably the 1st partial access period, so it is not significant. Given the
pleading now separates the GPN haul road claim and the OLC haul road claim and
partial access is not pleaded to be provided until after the last date identified in
paragraph 32D, the different dates in paragraph 32D do not materially affect the
characterisation of the Plaintiff’s claim. It is a mischaracterisation by the Defendant
that there are multiple obligations pleaded to provide access to different parts of the
site at different times in accordance with the construction period and without delay.
While the Plaintiff has pleaded separate breaches for the different work fronts, the
effect of those breaches have been separately pleaded.
[103] The Plaintiff does however need to provide clarity in the pleading in relation to the
inter-relationship between the different conflicting dates in paragraphs 26(a) and 32D
which does give rise to an objective ambiguity.
Causation
[104] The Plaintiff’s claim has been redrafted to identify the cause of the lack of sufficient
access for the standby claim and the delay claim by reference to the loss of
productivity, as a result of the Plaintiff not being able to utilise plant and equipment
as planned and meet production targets on a daily basis. It pleads that its proposed
work plan was reasonable to meet the terms of the Contract, including to achieve or
exceed the Contract productivity and complete the works by 20 March 2012 and with
due expedition and without delay.53
[105] While the draft 5FASOC pleads various different stages, in which varying degrees of
access was provided to different parts of the site, I do consider that the present case
now bears some analogy to the pleading considered by Flanagan J in Santos Ltd v
Fluor Australia Pty Ltd,54 that the proper characterisation of the plaintiff’s pleaded
claim is similar to that of the failure to provide AFC drawings by a particular date
which was a single breach, and the pleaded dates on which various drawings were
provided were relevant to establishing the critical delay.
[106] Similarly, in this case, the relevant breach is the failure to provide sufficient access by
a nominated date for GPN haul road access to the Bunds (GPN Work Front), and the
OLC haul road access from the OLC Cut and Bunds (OLC Work Front). Rail Receival
South is of a different nature, as that involved the clearing and grubbing of all
vegetation by the Defendant, not the provision of access to Rail Receival South. The
Plaintiff has now introduced in the pleading a mechanism by which the effect of the
breach, manifested by physical attributes, can be measured, namely the GPN Planned
Productivity and OLC Planned Productivity, which is then used to measure the level
of standby for the plant and equipment which had been planned to be used in that area.
Given there were changes in the level of access provided, the loss of productivity
suffered changed as did the level of plant and equipment that could be used as opposed
to being placed on standby. Thus unlike the previous pleading which had pleaded the
loss caused for the whole of site for the different periods, the present pleading
52 See also [34C] of the 5FASCOC.
53 5FASOC, [28M].
54 [2017] QSC 153.
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27
identifies the loss to productivity caused and the level of standby measured by the loss
of productivity having regard to the equipment that was to be used for the particular
area in respect of the GPN haul road and the OLC Haul Road.
[107] I do not accept the Defendant’s submission that the Plaintiff has not sufficiently
separated the effect of the lack of sufficient access for each of the three work fronts
(as described by the Plaintiff). I accept the Plaintiff’s submission that for each of the
separate work fronts, there is a separate breach and what flows from that separate
breach is the lack of physical access which resulted in the lack of productivity which
resulted in the equipment being placed on standby.55 The draft 5FASOC does plead a
discrete claim for a particular period for the particular factual circumstances that
applied separately for the GPN Haul Road work area, the OLC Haul Road work area
and Rail Receival South. It has identified the equipment that was planned to be used
for the particular period and that it was available to be used. As was candidly stated
by the Plaintiff while the pleading does not identify for example, the particular truck
that was planned to be used because they were allocated on the day they were to work,
the pleading and the Productivity and Standby Schedule does disclose the number of
trucks and other plant and equipment that were working as opposed to the number of
trucks and other equipment that were planned to be used.
[108] While equipment was not designated to be truck “A” or excavator “B”, the Plaintiff
has referred to the fact that the equipment, particularly in terms of the dump trucks
used to haul the fill material, were of the same capacity and interchangeable. Given
that trucks of that same were to be deployed on the different work fronts, and were
not deployed or deployed for the time that was anticipated, the pleading of the number
of trucks planned, which have the same capacity compared to the number actually
utilised, it is sufficient to disclose the number of trucks being utilised or not utilised
in order to sufficiently disclose causation in the pleading. As was recognised by the
Plaintiff’s counsel, they will be required to provide evidence to show that a particular
truck was working on a particular part of the site on a particular day driven by a
particular person for a particular number of hours. According to the Plaintiff, it will
be able to do that. There may well be an issue in relation to the Plaintiff ultimately
proving its case as it proposes to do but it is presently sufficient for it to plead in the
manner which the Plaintiff has, in order for the Defendant to be able to identify the
case it has to meet. A further evidential issue the Plaintiff will have to meet is the fact
that, according to the Defendant, the trucks were at different rates, albeit the same
type of truck, for different parts of the work to be carried out, such that the basis of
the claim for a particular rate will need to be established. The matters complained of
do not prevent the Defendant understanding the Plaintiff’s case and to the extent
further particulars may need to be provided or disclosure made in order for it to fully
respond to the allegation that can be dealt with by the Defendant in its defence on the
basis that material will need to be provided for it to be able to properly respond.
[109] The GPN haul road claim is more complex than the OLC haul road claim or the Rail
Receival claim. According to paragraph 26 (b) (iii) of the draft 5 FASOC, the Plaintiff
required three access points, namely the main haul road with two access points and
the Beales Creek crossing, in order for the Plaintiff to have sufficient access from the
GPN Borrow source. According to the Plaintiff’s case the provision of the three access
55 Insofar as the plaintiff’s case is that it had planned for particular equipment to be used to achieve a
particular level of productivity based on sufficient access which could not be utilised as a result of the
limited physical access.
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28
points are part of the single obligation of the Defendant to provide sufficient access.
The Defendant contends that demonstrates that the causes of the standby for the Group
A plant cannot be disentangled and it therefore is an allegation involving global
causation.
[110] According to the Plaintiff’s case, all three access points had to be provided in order to
provide sufficient access, and the failure to provide all three access points constitutes
the breach of the obligation to provide sufficient access with the added requirement
that the road had to be wide enough to permit 50T dump trucks to pass each other in
the opposite direction. The different roads or access points identified are, according
to the Plaintiff, the physical elements of the breach.
[111] The fact that the Plaintiff’s case is that there had to be in addition to Beales Creek,
two other access points for the GPN haul road in order to provide “sufficient access”
can arguably be said to result in a single breach if all three access points are not
provided but the extent to which the breach causes a loss of productivity and standby
varies depending on the physical nature of the breach which is alleged to have changed
in each period as partial access was provided. The GPN planned productivity is
pleaded as being based on sufficient access being provided as pleaded in paragraph
26(a), (b) and (c). I consider that it is arguable in relation to the GPN haul road that
the plaintiff has pleaded an obligation to provide sufficient access which has been
causatively linked to the level of planned productivity utilising the equipment in
Group A and the resultant alleged standby.
[112] The fact that “sufficient access” in paragraph 26 is said to be constituted by a number
of varying roads to be provided from the very general “unimpeded, apart from
reasonable construction traffic, access to all physical locations” to specific haul roads
being designated from the GPN Borrow Source and the OLC Cut, with a variety of
alternatives being pleaded does not mean that in relation to those separate parts of the
work site, particularly in relation to the GPN haul road that the non-provision of one
or more access points constitute separate breaches in relation to each alleged access
point which has not been provided. The Plaintiff’s case is that “sufficient access”
required the construction of all roads to enable the physical sites to be accessed in
order for it to be able to comply with the Contract in terms of the contractual deadline
and the amount of work. The pleading then pleads that the access that was given was
only have partial access given the “sufficient access” required, which is specific to
the GPN haul road and OLC Cut. Thus, the lack of the differing physical access are
elements of the breach, not separate breaches. Although one would expect that the
Plaintiff’s case will become more refined with the benefit of expert evidence such
that a number of the alternatives pleaded will fall away, there is by the present
pleading a sufficient identification of the obligation, the relevant breach and the
subsequent loss, to satisfy the pleading requirements of causation.
[113] While one may foresee difficulties in the Plaintiff’s case in proving causation, it is
not pleaded as a global claim. Notwithstanding what is required to provide sufficient
access is, at least in relation to the GPN haul roads, more than one point of access,
the provision of sufficient access to a particular part of the work site is a singular
obligation, which has been breached but to differing levels for each of the periods in
which partial access was given, not what is contented to be sufficient access over the
life of the contract. I am presently not satisfied that there is an objective ambiguity in
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the pleading of causation such that, that the plaintiff is unable to determine the case
it must meet or that it has a tendency to delay or prejudice the trial.
[114] During the first partial access period, access was also restricted by the fact that the
single haul road provided only had a single lane with speed restrictions, which also
contributed to the delay and lower productivity which, on the Plaintiff’s case, was
one of the two things which contributed to the breach of the obligation to provide
sufficient access. On the Plaintiff’s contention, it contributes to the loss of
productivity and standby of equipment. However, even if characterised as a separate
cause of loss, the restricted access is only pleaded as effecting the GPN haul road for
the first partial access period.56 Given the limited contribution that the provision of
the single lane reduced speeds has, in terms of the overall claim, the prospect that the
causative effect of each may not be able to be separately identified is not sufficient to
refuse leave.57
[115] The Defendant also contends that three separate breaches are pleaded as having caused
the Plaintiff not to meet the planned productivity for a particular group of plant on a
particular day on a particular work front, as demonstrated by the Plaintiff’s claim in
respect of the Group B plant as pleaded in paragraph 33G. Thus, it is said this
demonstrates the claim is pleaded on a global basis. I accept the Plaintiff’s contention
that paragraph 33G does not identify three breaches, but rather identifies the failure
to provide sufficient access, and refers to the extent of access that was given and that
the reference to paragraph 33D(c) was on the basis that the Group B equipment had
been planned to be deployed to Rail Receival South prior to OLC work front but it is
the subject of a separate claim.
[116] I do not accept the Defendant’s contention that the commonality of Beales Creek
crossing to the GPN haul road and OLC haul road means the causative effect of the
lack of the crossing cannot be distinguished for each claim. It is not unreasonable that
the evidence could establish the level of interference with planned productivity, or
that an expert could calculate the particular resultant delay to each of the GPN haul
road and OLC haul road if the Beales Creek crossing was not provided. I do not accept
that the commonality of the crossing means that it is inarguable that the causative
effects of sufficient access not being provided in relation to the OLC haul road claim
and sufficient access not being provided for the GPN haul road claim cannot be
separated.
[117] In relation to the equipment and personnel in relation to Groups C and D, the
Plaintiff’s case does not rely on separate breaches or separate causes for the lack of
productivity and standby. Rather, it relies on it being able to succeed in its claim in
relation to the GPN haul road and OLC haul road, and to a lesser extent, Rail Receivals
South in order to establish the flow on effect in terms of equipment and personnel in
Groups C and D. I am not satisfied that there is sufficient objective ambiguity to
refuse leave in this regard or that the pleaded case of the defendant in this regard
adopts a global approach. It is logical that if there is support equipment to be provided
in relation to the main excavation sites and where the fill is to be laid, that the support
equipment will similarly not be able to be utilised. It will, of course, be for the
56 5FASOC, [33F]; cf [34CB] and [34F].
57 In that regard, the magnitude of a claim is a factor relevant to a court’s decision: Santos Ltd v Fluor
[2017] QSC 153, where Flanagan J referred to DM Drainage & Constructions Pty Ltd (as trustee for
DM Unit Trust t/as DM Civil) v Karara Mining Pty Ltd [2014] WASC 170 at [42].
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Plaintiff to establish that that support equipment was able to be used and would have
been used in the way intended at separate times for the GPN haul road work and the
OLC haul road work, and that the relative apportionment for standby can be
substantiated based on the lack of productivity in relation to those areas. The Plaintiff
will have to establish how the equipment was to piggy back off the work done on the
GPN and the OLC work fronts. The fact the equipment and personnel in Groups C
and D was to be used for both the GPN and OLC work fronts does not mean that
there is a global element in the claims for standby with respect to the equipment and
personnel, given that the alleged breach is said to have resulted in the equipment and
personnel not being able to be utilised as planned because of the work not being able
to be carried out, insofar as it is the Plaintiff’s claim that it was to be used separately
in a coordinated fashion for the GPN work front and OLC work front.
[118] In terms of the complaint of the Defendant about a person not being able to identify
which personnel would have been affected by the standby of equipment as opposed
to unavailable, the Plaintiff contends that particulars have been previously provided,
and can be provided, of particular personnel being linked to particular types of
equipment. Those particulars will need to be formulated commensurate with the
standby claims as they are now pleaded. If the particulars are not sufficient, that can
be addressed as part of case management. It is not a basis upon which leave should be
refused.
[119] Finally, the use of the Group B plant, the OLC haul road and the Rail Receival South
does not support the fact that the pleaded claim is one of global causation. The
pleading identifies that the equipment in Group B was to be used at different times
for the OLC haul road and the Rail Receival South. It was to be utilised for the Rail
Receival South area in the period prior to any partial access period. The draft
5FASOC identifies the available plant and equipment that could be utilised after the
Defendant had carried out the relevant clearing work which was not until 12 January.
[120] While I can foresee difficulties for the plaintiff proving its claim, I consider that the
way in which the Plaintiff proposes to plead its claim does plead material facts which
arguably lead to a reasonable inference that the alleged breach and the alleged later
events stand to each other in relation to cause and effect.58 I consider that the Plaintiff
has now pleaded the claim for standby hours sufficiently to reasonably disclose a
cause of action in terms of causation which is not a global claim, unlike the preceding
4FASOC, where I found that the Plaintiff had not sufficiently identified the relevant
causal nexus.59
[121] Subject to the Plaintiff addressing the ambiguity between paragraphs 26A and 32D in
terms of breach, I consider that the Plaintiff’s amended case sufficiently pleads a chain
of events and material facts supporting its case for causation, to disclose a cause of
action. If difficulties arise as the case develops, they are matters which can be
addressed through the case management process. While the Plaintiff has a number of
hurdles to overcome to succeed in establishing its case, the Plaintiff has now
sufficiently pleaded the relevant causal links to satisfy the requirements of pleading
causation.
58 Southern Cross Mine Management Pty Ltd v Enshan Resources Pty Ltd & Ors [2004] QSC 457 at
[15].
59 [2020] QSC 122 at [39] and [41].
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Planned productivity as part of the causal chain
[122] The Defendant contends that while a contractor may be entitled to plan its work, that
entitlement does not give rise to an obligation on the part of the other contracting party
to ensure the plan is able to be carried out, nor that a contractual right to standby arises,
because the plant could not be used as planned. While that may be so, it is not
contended that the claim formulated in this way is inarguable. The fact that there are
legal hurdles that will need to be overcome for the Plaintiff to succeed does not mean
the case is not arguable and that the pleading does not disclose a cause of action, nor
was it argued on this basis. That will be a matter to be determined at trial.
[123] The Defendant further contends the alleged causal chain contains a global element, as
the hours of standby claimed for an item of plant are said to have been caused by and
calculated by reference to the entire group of plant and the Plaintiff’s case presumes
that because the output of the group was not achieved on a particular day, the plant
was on standby for the periods claimed.
[124] The Defendant also contends that the measure of productivity in the middle of the
chain of causation is objectively ambiguous and confusing. It is, according to the
Defendant, both being pleaded as a cause and a measure. The Defendant contends that
the loss of productivity should not be a step in the causal chain in the access and
standby claims. The Defendant contends that the measure for actual hours is
objectively ambiguous given that logically the lack of productivity would be the result
of plant not being used not the cause of it.
[125] The Defendant further claims that the Plaintiff’s claim conflates the utilisation of the
plant with the productivity achieved from that utilisation. It contends the failure to
reach an alleged planned productivity does not render itself evident, that equipment
was to be placed on standby.
[126] The Defendant contends that the Plaintiff should have pleaded its claim by the more
conventional approach of the measured mile. The Plaintiff contends that it could not
do so because it never received full access to apply such a measure. The fact the
Plaintiff has not pleaded its claim in the conventional way of course is not the point.
The question is whether it has successfully disclosed a reasonable cause of action.
[127] Further, the Defendant complains that the allegation is that they did not use the plant
and equipment as planned, but the Defendant is not informed whether or not they
were using it at all in the Productivity and Standby schedule. The Defendant
conceded that it might be something dealt with by way of particulars, but stated there
is an objective ambiguity on the face of the pleading.
[128] According to the Plaintiff, the logical connection between the failure to provide
sufficient access, the loss of productivity when actual productivity is compared to
planned productivity, and the plant and equipment which was placed on standby are
sufficiently identified and logically flow from its pleaded case, given it results from
the physical circumstance caused by the lack of sufficient access.
[129] The Plaintiff has identified, by reference to each work front, the planned productivity.
Paragraph 28G identifies the GPN planned productivity, particularly in respect of
hauling fill material from the GPN Borrow Source to the Bunds (paragraph 28G), and
identifying the equipment that will be used. The same has been done in relation to
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the hauling of the fill materials from the OLC cut to the OLC platform and Bunds
(paragraph 28G(h)). The planned productivity has been calculated on an hourly basis
by reference to each piece of equipment.
[130] The pleading then identifies what equipment the Plaintiff had planned utilise to
achieve the GPN planned productivity for the particular access period, and the
productivity that was in fact achieved, which is then used in the hours of standby.
While the Plaintiff has not identified by reference to an individual truck how it was
utilised on a particular day, it has identified how a particular piece of plant or
equipment, for example, a dump truck, was utilised in relation to the GPN haul or the
OLC haul road. Given that, and the interchangeability of equipment such as the dump
trucks, there is sufficient linking between the lack of sufficient access with the
reduced productivity and the reduced utilisation of plant and equipment. It is not
merely a matter of presumption that because of the output not being achieved as
planned, individual pieces of plant and equipment were inevitably placed on standby
because they could not be utilised as planned.
[131] The work that was to be carried out that is alleged to have been interfered with by the
lack of sufficient access was the level of haulage that could be carried out, and the
consequential fill and compaction of the material at the Bunds and OLC platforms
with the follow up work to spread and trim drainage rock fill and batters at the Bunds.
It is not, therefore, a complex multi-layered construction process that is the subject of
the claim. There is a logical connection between the failure to provide sufficient
access, with the inability of individual plant and equipment to be utilised as planned,
and the subsequent loss of productivity, which has now been identified for the
different parts of the site. The detail which the Plaintiff has now included in its
pleading and the way it pleads its claim is sufficient. The use of planned productivity
does not result in the causal chain containing a global element, such that the
Defendant is not able to sufficiently identify the causation case being argued by the
Plaintiff. Given the different reference point of planned productivity utilising
particular equipment for a particular work front, and according to the Plaintiff, it has
identified what equipment was operating on the particular work front on any one day
in the Productivity and Standby schedule during the three different periods concerned,
the Plaintiff has not merely presumed the cause of the resulting standby that was the
subject of the second strike-out judgment. Given that, nor do I accept that the
calculation of standby has been done on a global basis.
[132] As to the causal chain, it has been pleaded that:
(a) because of certain access delays in each access period, the Plaintiff could not
utilise the plant in a particular group “as planned”;
(b) this caused the Plaintiff to only achieve a certain level of daily productivity for
the group which was less than the planned productivity; and
(c) that the failure to achieve planned productivity then caused the required hours
of standby claimed for plant on that day.
[133] On a superficial level, the Defendant’s contention that the loss of productivity being
interposed and causing the hours of standby appears incorrect. However, the measure
of productivity in the middle of the causal chain is not objectively ambiguous insofar
as the Plaintiff has identified the baseline of the planned level of productivity, which
has been pleaded. The proposed equipment to be used has been identified which are
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not significant in number. The planned productivity, based on sufficient access being
provided and using that equipment, has been identified and the level of actual
productivity based on the level of access that was provided has been specified. The
difference in the productivity is not the cause of the standby. The standby is the result
of the use of the plant and equipment that was planned to be used being physically
impeded due to the lack of access. While it is a matter of inference that the plant and
equipment was placed on standby for the hours claimed, based on the lower
productivity, a reasonable basis for that inference has been pleaded. Although not a
conventional approach the Plaintiff’s case is sufficiently clear for the Defendant to
understand it and respond to it.
[134] While there may be foreseeable difficulties in the Plaintiff successfully executing
such a claim, it is presently sufficiently pleaded to disclose a cause of action, and is
not objectively ambiguous such that leave should be refused on the basis that it has a
tendency to delay and prejudice a fair trial, and the determination of the issues in
dispute.
Productivity and Standby Schedule
[135] The Defendant complains that the productivity schedule, which provides particulars
of the pleading as to productivity and standby hours, is neither concise or
comprehensible. It contends that it is unwieldy and complex, such that it would
prejudice the fair trial of any matter, and that it is deficient, referring particularly to
the comments of the Court of Appeal in Barr Rock Pty Ltd v Blast Ice Cream Pty
Ltd.60
[136] Particular complaints include that the Plaintiff has used extrapolated or assumed
amounts in relation to the daily activity of each item of plant, rather than relying on
actual records. The Plaintiff contends this is only the case in a number of confined
cases and particularly in respect of the load count. The Plaintiff contends that there is
a proper basis for the extrapolation, which is in relation to the load count, but
otherwise the records have been disclosed which provide the factual detail of what
has been pleaded. The Plaintiff accepts particulars are necessary, but have not yet been
requested. While it may be the case that the particulars should have been included, it
does not provide a basis upon which leave should be refused.
[137] It is also said by the Defendant that it is unclear from the Productivity and Standby
Schedule whether plant equipment was not used “as planned or at all”, referring to
paragraph 1(h) of the statement of claim. According to the Plaintiff, to the extent that
that phrase is referred to in paragraph 10(h), it is a matter of construction. On a factual
level, the Plaintiff submits that evidence will be made available as to a particular
vehicle working on a particular work from source documents, which will identify
what they were doing and when they were doing it. It contends that being used other
than “as planned” is referrable to the pleading, i.e. their planned rate of the equipment
working 10 hours per day. The Plaintiff contends that they have particularised the
vehicles that were working, what they achieved and the hours they were working and
not working. It contends that the complaint being made by the Defendant is really a
request of evidence. In my view, there is substance in what the Plaintiff submits. I
am not persuaded at present that there is any objective ambiguity in the Schedule that
would require leave not being granted.
60 [2011] QCA 252.
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[138] The Defendant further claims that the Plaintiff has failed to identify the basis upon
which it asserts that the plant was required to be on standby proportionately to the
extent that planned productivity that was not achieved, if the plaintiff is allowed to
include the loss of productivity claim. The Plaintiff however contends that the vehicles
were to work for 10 hours per day (which is pleaded) and that the daily records
referred to identify for every vehicle the actual number of hours worked. The
defendant further claims it is not informed as to when the plant and equipment was
not used at all or when it was able to be used but was less than planned. The Plaintiff
contends that the schedule shows precisely when equipment was being used and when
it was not. It contends further detail will be disclosed which will pinpoint the vehicle
and operator working on a particular work front on any one day. If a vehicle could be
used as planned, then zero hours are claimed as standby, and if not used as planned,
the schedule identifies the number of hours claimed as standby. While the Defendant
will ultimately need to be informed of the matters, I consider that the Defendant is
sufficiently on notice of the case it has to meet. If the information is not forthcoming
it may be a matter addressed in the case management process.
[139] The Defendant also complains that the claim ignores dayworks and variations which
must form part of the scope of works, and where plant and equipment is being used
for matters such as dayworks, it cannot be simultaneously be used for standby. The
Plaintiff responds that the Defendant’s claim misunderstands the starting position,
which is that the schedule includes planned against actual productivity and planned
necessarily does not take into account variations which a party does not will arise.
Variations and dayworks have been excluded, such that if a truck is doing other
additional work not within the shape of the work, it is not included in the claim for
standby. The Plaintiff therefore states that there is no double dipping in the approach
they have adopted. Given that there appears to be no basis for the Defendant’s
complaint.
[140] The further complaint of the Defendant is that to the extent that it is said that
machinery has been on standby “and the respective operators” there is no break up of
a claim into various access delays. As stated above according to the Plaintiff, there is
a schedule with the operators listed which, if it hasn’t been previously provided, can
be provided. Given the large size of the schedule I do not consider these further details
should be added to the present schedule but rather they should be provided as a
separate schedule and referred to in particulars, where appropriate. The information
must of course be in a form that correlates with the way the plaintiff now pleads its
case.
[141] As to the complaints that some of the calculations are based on the whole of the site,
not individual worksites, that is a matter which may be raised by way of defence
rather than being a matter which will have the tendency to delay or prejudice the trial.
[142] While the Plaintiff accepts the schedule is a large document, it does not accept that it
is unwieldy and contends that it is the most efficient way to present the information
contained. It contends that while the schedule is a large document with a large amount
of information, it is not obviously deficient in the presentation of the Plaintiff’s case.
While I accept there may be short fallings in the way the schedule has been provided,
it provides a large amount of information to support the loss of productivity
allegations, and I am not satisfied that the schedule itself would be cause for me not
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to grant leave. It may well be that further particulars will need to be requested by the
Defendant and provided by the Plaintiff.
[143] As to the unruly nature of the schedule, the case is being case managed and I anticipate
that that may well be something where the parties should have to be directed to confer,
perhaps with the assistance of an outside facilitator such as the resolution registrar to
see whether it can broken up to include the information in two schedules..
Delay and Completion Claim
[144] The plaintiff seeks damages due to delay caused by the lack of sufficient access.
[145] The plaintiff contends that it has now addressed the deficiencies which I identified in
the previous strikeout judgement where I found the plaintiff had pleaded the different
delays to different parts of the site as delaying completion collectively.61 The plaintiff
contends that it has now calculated the delay to completion by pleading the
consequence of the defendant’s breaches in relation to each of relevant periods of
delay in completion of the work under the contract specific to each work front by an
express number of days which were the result of the failure to provide sufficient
access for each work front in each period. It contends that it has separated the
breaches for failing to provide Sufficient Access for each work front, identified for
each period and distinct work front the discrete period of delay referrable to each and
calculated the duration of delay in each period for each work front by reference to the
difference between the planned productivity and the actual productivity. The plaintiff
contends it can be recalculate the delay for each work front by recalculating the
planned against actual productivity in relation to distinct work fronts if the Court
determined one breach was not made out.
[146] The loss is said by the Plaintiff to be made up of component parts. Provision has been
made to exclude from the calculation, time for the Christmas break, wet weather, and
non-working days. According to the plaintiff, if they do no establish the claim with
respect to one part, the aggregation of loss can be adjusted. In the claim for delay the
planned production was broken down to the planned productivity level using Group
A equipment for the GPN Work front and Group B equipment for the OLC work
front. The plaintiff has calculated the delay on the basis of the amount of material
that was moved and placed, compared to the amount of material that was planned to
be moved in each of the access periods defined in the pleading and the Work
production achieved and the delay caused by moving less than the planned
production. The number of days delay are calculated separately for Group A for the
GPN Work front and Group B for the OLC work front as a result of the second partial
breach and other sources of delay such as we weather, such that the figure is
calculated by reference to individual and distinct factual events with respect to each
group.
[147] There is no complaint in relation to the “no access” breach pleaded in paragraph 39A
of the draft 5FASOC.
[148] The Defendant contends that the allegations in paragraphs 39B to 40AA of delays to
completion by reason of the access delays remain global in nature. It contends that
while the case has been narrowed in the draft 5FASOC in alleging the delay to
61 [2020] QSC 122 at [45] which I considered was a pleading of a form of global causation at [47].
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completion, the Plaintiff has not disentangled the multiple interacting events said to
have affected each group and the plant on site as a whole. In support of this
contention, the Defendant submits that the previous deficiency found that the pleading
failed to disentangle multiple causes of the alleged delay applies equally to the
resulting delay claims in the present case based on the alleged difference between
planned and actual productivity.
[149] Further, the Defendant complains the Plaintiff does not identify where the plant could
not be used precisely as planned, how it could not be utilised as planned or where it
was not used at all.
[150] The Defendant also contends that the fact that the plant between each of Group A and
B was used interchangeably means the effect of a particular access delay on a
particular item of plant is not identified. In addition, the Beales Creek Crossing forms
part of the access requirement for both the GPN haul road and the OLC cut.
[151] These matters have been largely addressed above. I have found that it is arguable that
each group was separate and distinct from the other. The delay therefore can be
calculated separately in relation to the GPN work front and OLC work front.
[152] The delay for each of the GPN haul road and the OLC haul road as a result of the lack
of Beales Creek has been separately pleaded and calculated in the draft 5FASOC for
the relevant period. Although the Beales Creek crossing is alleged to be common to
both the GPN Haul Road and OLC Haul Road and the lack of such a crossing would
be relevant to the calculation of delay for both the work to be carried out in respect
of the GPN Haul Road and the OLC Haul Road, I am not satisfied that the claims
cannot be separately calculated in terms of the delay caused for each anticipated haul
cycle for each of Group A and Group B which had separate routes based on the
planned productivity and it is impossible to disentangle the two claims..
[153] Similarly the fact that plant was used interchangeably between Groups A and B does
not mean that the effect of a particular access delay on an item of plant is not
ascertainable where the same item was to be used and the claim is based on the
planned productivity using those items of plant as opposed to be plant that was
actually used. It will, as the Plaintiff recognises, be a matter of evidence being
provided from which it can be proved that particular plant and equipment within the
group A or B on a particular day were not being used or being utilised on a limited
basis. The pleading reveals the basis of the claim being made and the relevant causal
link such that it discloses a reasonable cause of action, which is sufficiently identified
for the defendant to be able to plead a defence. Thus, the approach adopted by the
Plaintiff is presently sufficient to disclose a reasonable cause of action.
[154] An additional matter that the defendant raises is that absent from the claims is any
impact on productivity and time by Groups C and D even though those groups are
said to be integral to the level of planned production to be achieved by each of Groups
A and B. It contends that the interdependence of Groups C and D with Groups A and
B means that the question of delay cannot be conventionally pleaded as the plaintiff
previously acknowledged.
[155] The Plaintiff’s response is that the claim is not based on any delay arising from Group
A and B, although there may be costs claimed for that equipment in those groups
because the delay is driven by not being able to utilising the Group A and B plant in
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the way planned, not the group C and D groups which worked as a consequence of
the work done by group A and B. While there is an interaction in the pleading between
Groups C and D, it is not inarguable that Groups A and B which carry out the primary
work were the source of delay rather than Groups C and D who are said to have piggy
backed off the work for Groups A and B, nor does that suggest that the delay claim
cannot be conventionally pleaded. There is a logical connection between Group C
and D equipment which are engaged in follow up work being driven by the work
carried out by Groups A and B.
Labour and supervision damages – 44A – 44C
[156] The Plaintiff contends that its claim for damages in paragraph 41 onwards are with
respect to claims for damages after 20 March 2012. It contends that the Contract
should have been completed by 20 March and what’s being claimed is for time after
20 March costs would not have been incurred and the work would have been finished
on time. The further completion date takes account of events that would not have been
accounted if they had finished on time including for variations. Paragraph 44B is an
alternative claim for personnel to the standby claim.
[157] The Defendant contends that the Plaintiff still has not pleaded a case which has
overcome the global elements which were found previously
[158] As to the further delayed completion date, the Defendant contends that although the
claim for supervision costs is identified on a date by date basis the costs are still
claimed in relation to the entirety of the works at the site, such that a particular
supervision costs is not causally connected to a particular group of plant. Thus, the
costs are claimed on a global basis by reference to all of the delays claimed to have
occurred on the site up until and including that day. It similarly contends the
alternative claim for labour costs remains pleaded on a global basis, namely for the
entire site and are identified only on a weekly basis. No attempt has been made to
link a particular labour costs for an operator to a group or plant or causally link that
to an access delay on a particular day. The Defendant contends that the Plaintiff’s
amendments by referring to the delayed completion date and further delayed
completion date do not address the defects previously identified by identifying the
causal nexus with sufficient particularity so as to enable the defendant to know with
precision the case it is required to meet.
[159] The Defendant also complains that the Plaintiff contends it has claimed the cost of
operators as its loss and that while paragraphs 44B(c) and 44C(b) are framed as being
for damages the quantum claimed is not costs and losses actually incurred but rather
is calculated on the basis of rates which are not included in the contract. It contends
that unless the Plaintiff pleads and particularises the actual cost and loss it says it has
incurred the claims to those heads of loss should be struck out.
[160] There is a distinction between the draft 5FASOC and the previous pleading where the
delays were bundled together in one defined term and loss was sought on that basis.
The Plaintiff contends that the court may adjust the loss claimed if for example it
found that one of the access breaches to a particular work front did not have the
delayed effect pleaded by the plaintiff on the basis it has provided sufficient
particulars of the costs claimed on a daily or weekly basis over the relevant periods to
allow adjustment to a delay period to be similarly applied to the loss alleged. The
Plaintiff contends that the claim in paragraph 44B which identifies the cost incurred
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engaging operators for the equipment over the non-access period breach first partial
period breach and second partial access period breach have been sufficiently
particularised to allow the court to make a finding on the appropriate damage suffered
dependant on which if not all of the relevant access periods are said to have been
caused by the defendant’s breaches.
[161] Paragraph 44B pleads the costs associated with recurring overhead supervision and
travel after 20 March 2012, the date which the Plaintiff was required to complete the
works under the contract. The Plaintiff contends it is capable of adjustment
commensurate with any finding on the actual delay by the court or rejections of
periods of delay during specified access periods in particular work fronts.
[162] Paragraph 44C is expressed as an alternative to the claim for payment under the
contract in paragraph 42 of the draft 5FASOC for the cost of operators between
20 March 2012 and further delayed completion date. It contends that the particulars
are sufficient to allow the court to find the appropriate loss dependent on any findings
as to the duration or allowance of the relevant access period said to have been caused
by the defendant’s breaches.
[163] The damages claimed are for additional supervision costs and for labour costs as an
alternative to plant standby rates for the First and Second Partial Access Periods.
While the Plaintiff has adopted the terminology of the “Delayed Completion Date”
to refer to the cumulative effect caused by the effect of the delays due to the delay
caused by the Access delay breaches which it contends can be adjusted to take account
of the Court findings in relation to the access period breaches, it has included in the
claim for damages, particulars of the costs claimed on a daily or weekly basis to allow
for adjustments its claim for the supervision and in the alternative for labour costs.
Both are claimed on an entire site basis not by linking them to one of the particular
categories of plant or one of the particular work fronts. In paragraph 46 of the Second
Strikeout judgment I found that the plaintiff had not pleaded any link between the
Defendant’s delays and the loss suffered and had made a claim for consequential
delays which were in breach of contract which relies on the Defendant’s delays. I
found that the Plaintiff had not rectified the previous complaint which had resulted
Justice Ryan previously striking out the similar claim.
[164] While I accept given my above findings that the Plaintiff will be able to make
adjustments if particular delays are not found, the difficulty previously identified with
the Plaintiff’s claim remains, insofar as the supervision costs and labour costs are
claimed on a site basis. While the Plaintiff contends the supervisor would have to be
on the site regardless of the particular work delayed that is not evident from the draft
5 FASOC which claims for supervision personnel. In terms of labour costs consistent
with the way the Plaintiff now frames its case the costs should be linked to the
particular categories of plant and equipment for the particular periods.
[165] I would therefore not provide leave for the reformulated Claim for Damages in
paragraphs 44A –44C as it has not overcome the deficiencies in the pleading
previously identified.
Conclusion
[166] Based on the above analysis, I do not consider that leave should be given for the draft
5FASOC, given:
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(a) The pleading needs to be amended in relation to the prior negotiations to
remove the prior negotiations which are no longer relied upon by the Plaintiff,
those which I have determined are irrelevant and to make clear the objective
facts which are said to have been mutually known by the parties derived from
the prior negotiations;
(b) To remove the particulars of all of the draft contracts other than the reference
to the draft provided on 14 November 2011;
(c) To amend the claim to make clear the relationship between the date in 26(a)
and 32D;
(d) The damages claim referred to in 44A – 44C does not sufficiently plead
causation and must either be amended or, if the Plaintiff is to pursue it on the
basis that it cannot disentangle the labour costs or supervision costs in a similar
manner to what it has done in relation to the access claims and standby to plead
the necessary preconditions for a global claim.
[167] In reaching this determination, however, I have not accepted the contention of the
Defendant that the access delays and standby claims are still pleaded as global claims
or are objectively ambiguous. While now identifying the relevant causative effect of
the lack of sufficient access through the differential between the planned productivity
for the particular work front and the actual productivity which resulted in the category
of equipment to be used for that work front not being able to be utilised as planned,
they have successfully pleaded the relevant causal link between the alleged breach
and the loss of productivity and standby hours claimed. Similarly, I have not accepted
that the claim for delayed completion remains a global claim given it has now also
been calculated by reference to the work done in relation to the particular work front
utilising the particular categories of plant sufficiently that each group is separate and
distinct from the other as are the access delays, or at least that is arguably so on the
face of the pleadings. As to the productivity and standby schedule, I will hear from
the parties as to whether I should direct that they confer in order to be able to further
refine the schedule in question.
Orders
1. Leave for the draft 5FASOC is refused.
2. The Plaintiff is given leave to replead the draft 5FASOC and to file a further
amended statement of claim in its present form subject to the above matters
identified being rectified.
3. The Plaintiff is to file a further amended statement of claim by 18 June 2021.
4. The Plaintiff is to pay the Defendant’s costs of the application. The Plaintiff
has not been successful in obtaining leave and in any event, was obliged to
bring the present application.
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Official source: https://www.sclqld.org.au/caselaw/QSC/2021/086