[2019] WASC 399
General information, not legal advice.
Supreme Court of WA
2019-11-07
Martin J
Original judgment source is linked above.
[52] The present application was advanced initially as a basis to relieve the defendant of further discovery obligations towards pars [11], [14] and [15] of the further amended SSOC. I would accede to the present application. But it is now apparent to me that the underlying cause of the problem is deeper and fundamentally structural. It now needs to be squarely confronted.
[53] I am of the view that pars [14] and [15] of the further amended SSOC must be struck out as embarrassing. That was not appropriate in October 2017. But it is now. When moved, I would give leave to the defendant to amend the present application to pursue that extra strike out relief and then, grant such an application.
[54] I am still inclined, in principle, to allow the plaintiff in the future to amend its pleadings to correct the current deficiencies - but on terms. My terms would require the plaintiff to explicitly commit within a reasonable period to plead in unmistakeable terms as to whether or not it is running a modified total costs claim in this sphere. The necessary accompanying pleas concerning an exclusion of alternate causes for its loss would need to follow. However, if the plaintiff takes a position contending it is running a total costs claim and without modification, then it would need then to provide the proper particulars of causation of financial loss as a condition of obtaining leave to amend in future. If leave is sought then the plaintiff should submit a minute of an amended pleading to obtain leave in those respects.
[55] During the course of arguments, a suggestion was made that a further expert be engaged by the plaintiff in due course to provide the extra causative financial loss information towards the effects of the drawing deficiencies. However, that is inconsistent with order 4 of the December 2017 orders where it was recorded that what was to emerge as the plaintiff's Brannigan report would provide this required financial loss detail. It did not. Manifestly, the plaintiff has still not provided the financial details. Further, the sparse detail that has been provided as regards the drawing deficiencies by the Brannigan report is threadbare at best.
[56] In the end then, I am persuaded to accede to the present application to relieve the defendant of discovery obligations in respect of pars [11], [14] and [15] of the further amended SSOC. But further, when moved, I would strike out pars [14] and [15] of the further amended SSOC, on the basis that they are embarrassing. They still do not provide requisite detail, or meet the pre‑requisites of clarity as regards a position concerning what is strongly suspected to be a modified total costs claim but, if so, is presented in inadequately pleaded fashion.
(a) made on or before 28 June 2019; and
(b) accompanied by a minute of proposed amended pleading, which must expressly plead whether the claim arising from the alleged General Drawing Deficiencies is a global claim/modified total costs claim or a conventional damages claim and plead the necessary elements and particulars thereof.
The present application The 28 August minute of pleading
In breach of the terms pleaded in [5](f), [6] or [7] above, or alternatively, in breach of the warranty pleaded in [5](g) or [8] above, the Drawings and Specifications did not meet the standard referred to in [9] above and were deficient (General Drawing Deficiencies).
(a) The deficiencies in the electrical building services engineering and vertical transportation drawings are set out in section 6.8 of the Preliminary Expert Report of Gerry Brannigan dated 16 April 2018 (Brannigan Report) at pages 30 to 39;
(b) The deficiencies in the mechanical building services engineering drawings are set out in section 7.7 of the Brannigan Report at pages 45 to 49;
(c) The deficiencies in the hydraulic building services engineering drawings are set out in section 8.7 of the Brannigan Report at pages 54 to 58;
(d) The deficiencies in the mechanical file protection engineering drawings are set out in section 9.7 of the Brannigan Report at pages 63 to 65;
(e) The deficiencies in the architectural drawings are set out in section 10.7 of the Brannigan Report at pages 76 to 96; and
(f) The deficiencies in the façade engineering drawings are set out in section 11.7 of the Brannigan Report at pages 105 to 110.
[14] As a result of the General Drawing Deficiencies, and each of them, it was necessary for the Plaintiff to undertake, in respect of each of the drawings identified in Schedule V, work additional to that within the Scope of Work, in order to identify and rectify the deficiency or each deficiency in the drawings by the steps identified in Schedule V in relation to each such drawing.
Particulars
(i) the documents containing the reference 'CTRRFI' identify the requests for information made by the Plaintiff's subcontractors to the Plaintiff, which the Plaintiff had to process and manage;
(ii) the documents containing the reference 'App_Corp-RTRFI', 'Aurecon-RTRFI' and 'WBAUS-RTRFI' identify the responses of the Owner's Representative or Defendant's Project Designers, on behalf of the Defendant, to the Plaintiff's requests for information;
(iii) the documents containing the reference 'BEPL-RTRFI' identify the Plaintiff's responses to the requests for information made by the Plaintiff's subcontractors;
(iv) the documents containing the reference 'BEPL-NOD' identify the notices of delay which it was necessary for the Plaintiff to prepare and issue to the Owner's Representative advising of delays associated with the deficiency identified in the drawing against which the document reference is entered in the schedule;
(v) the documents containing the reference 'BEPL-VR' identify the variation requests prepared and issued by the Plaintiff to the Owner's Representative advising that the Plaintiff considers that the response of the Owner's Representative or Defendant's Project Designers to the Plaintiff's requests for information is a variation direction under clause 13.1(b);
(vi) the documents containing the reference 'CONTADV' identify advices issued by the Plaintiff to the Owner's Representative (including notifications that responses to the Plaintiff's requests for information are outstanding);
(vii) the documents containing the reference 'PMA' or 'AA' identify advices issued by the Owner's Representative or Defendant's Project Designers to the Plaintiff providing or purporting to provide information in relation to the deficiency in the drawing against which the document reference is entered in the schedule;
(viii) the documents containing the reference 'GCOR' identify other correspondence issued by the Plaintiff, the Plaintiff's subcontractor or the Owner's Representative (as the case may be) in relation to the deficiency in the drawing against which the document reference is entered in the schedule.
[15] By reason of the matters pleaded in pargraphs [sic] [11] and [14], the Plaintiff suffered loss and damage.
Particulars
The Plaintiff's loss and damage is the value of the manhours spent undertaking the work necessary to identify and rectify the deficiency or each deficiency in the drawings, as particularised in Schedule V, including the preparation or consideration of the RFIs, sketches and/or correspondence particularised in Schedule V. The Plaintiff's personnel who, variously, performed that work and those hourly rates of those personnel are particularised in Schedule V.
The Plaintiff expressly states that this claim is a conventional damages claim.
The Plaintiff expressly states that the claim is a conventional damages claim. (my emphasis)
The contemporary iteration of proposed amendments circulated as at 4 October 2019
SFASSOC minute - pars [11], [14], [15] and Schedule V
General deficiencies
[11] In breach of the terms pleaded in paragraphs [5](f), [6] or [7] above, or alternatively, in breach of the warranty pleaded in [5](g) or [8] above, the Drawings and Specifications did not meet the standard referred to in paragraph [9] above and were deficient (General Drawing Deficiencies), and as a consequence, the Drawings and Specifications required additional work and augmentation by:
(General Drawing Deficiencies)
Particulars of General Drawing Deficiencies
The Drawings and Specifications that did not meet the standard referred to in paragraph [9] above are those identified in the column titled "IFC Drawing Reference" in Schedule V. For each identified document, the deficiency relied on by the Plaintiff is stated in the column titled "Deficiency / Brannigan Report Reference", or is identified in that column by reference to an item in the Preliminary Expert Report of Gerry Brannigan dated 16 April 2018.
Deficiencies in structural steel drawings
[12] ...
Damages
[13] ...
[14] As a result of the General Drawing Deficiencies, and each of them, it was necessary for the Plaintiff to undertake, in respect of each of the drawings identified in Schedule V, work additional to that within the Scope of Work, in order to identify and rectify the deficiency or each deficiency in the drawings by the steps identified in Schedule V in relation to each such drawing.
Particulars
In Schedule V:
(i) the documents containing the reference 'CTRRFI' identify the requests for information made by the Plaintiff's subcontractors to the Plaintiff, which the Plaintiff had to process and manage;
(ii) the documents containing the reference 'App_Corp-RTRFI', 'Aurecon-RTRFI' and 'WBAUS-RTRFI' identify the responses of the Owner's Representative or Defendant's Project Designers, on behalf of the Defendant, to the Plaintiff's requests for information;
(iii) the documents containing the reference 'BEPL-RTRFI' identify the Plaintiff's responses to the requests for information made by the Plaintiff's subcontractors;
(iv) the documents containing the reference 'BEPL-NOD' identify the notices of delay which it was necessary for the Plaintiff to prepare and issue to the Owner's Representative advising of delays associated with the deficiency identified in the drawing against which the document reference is entered in the schedule;
(v) the documents containing the reference 'BEPL-VR' identify the variation requests prepared and issued by the Plaintiff to the Owner's Representative advising that the Plaintiff considers that the response of the Owner's Representative or Defendant's Project Designers to the Plaintiff's requests for information is a variation direction under clause 13.1(b);
(vi) the documents containing the reference 'CONTADV' identify advices issued by the Plaintiff to the Owner's Representative (including notifications that responses to the Plaintiff's requests for information are outstanding);
(vii) the documents containing the reference 'PMA' or 'AA' identify advices issued by the Owner's Representative or Defendant's Project Designers to the Plaintiff providing or purporting to provide information in relation to the deficiency in the drawing against which the document reference is entered in the schedule;
and
(viii) the documents containing the reference 'GCOR' identify other correspondence issued by the Plaintiff, the Plaintiff's subcontractor or the Owner's Representative (as the case may be) in relation to the deficiency in the drawing against which the document reference is entered in the schedule.
[15] By reason of the matters pleaded in pargraphs [sic] [11] and [14], the Plaintiff suffered loss and damage.
Particulars
The Plaintiff's loss and damage is the value of the manhours spent undertaking the work necessary to identify and rectify the deficiency or each deficiency in the drawings, as particularised in Schedule V, including the preparation or consideration of the RFIs, sketches and/or correspondence particularised in Schedule V. The Plaintiff's personnel who, variously, performed that work and those hourly rates of those personnel are particularised in Schedule V.
The Plaintiff expressly states that this claim is a conventional damages claim.
[16] ...
[17] ...
[18] ...
General Drawing Deficiencies Particulars - RFIs, Sketches and/or Correspondence
Lack of coordination between electrical design and architectural design
Lack of coordination between electrical design and column design
Lack of coordination between electrical design and architectural design
Lack of coordination between the architectural set out for the distribution cupboards and the actual size required for disruption boards 300-MDB-1BS2-004 & 300- DB-1BS2-003
Lack of coordination between design and construction staging
Lack of coordination with 501B- 300-DWG-WBAUS-ARC-44001
Some details inconsistent with 501B-300-DWG-AUR-ELE-0015
501B-300-DWG-AUR-ELE-1308-SK-0367 501B-300-DWG-AUR-ELE-1308-SK-0395
Lengths of the cat6 cabling within the design longer than permitted by the standards
Lack of coordination between electrical design for the cable tray and the rest of the electrical design Lack of coordination with the location of café water meters outside of the café tenancy
Lack of coordination between electrical design and architectural design
General Drawing Deficiencies Particulars - Hourly Rates of Plaintiff's Personnel
The defendant's in principle difficulties with the proposed amendments
... the list does not enable a calculation of the plaintiff's claim or an understanding of the basis upon which the claim is put.
Such claims are global in nature because, among other matters, they do not draw any causal link between particular items and particular parts of work or the incurring of any particular cost. (emphasis in original)
By its application dated 28 June 2019, the Plaintiff seeks an order that the time for applying for leave to re‑plead paragraphs [14] and [15] of the FASSOC be extended from 28 June 2019 to 28 August 2019. Such an extension would allow the Plaintiff to re-plead the General Drawing Deficiencies claim, with the necessary particulars, all at once, rather than in a piecemeal fashion.
Taking into account the progress made since April 2019, an extension of two months is a reasoned estimate of how long it will take to complete the task of particularising the loss and damage for each drawing deficiency.
The total number of RFIs required to be reviewed has increased from 3,850 (the number known to me at 28 June 2019) to 7,311 (the number known as at the date of this affidavit). Rather than there being about 1,500 RFIs that remain to be reviewed in order to complete the pleading, there were in fact 3,461. The total amount of remaining work more than doubled.
The Plaintiff's review of the documents has identified coordination and practical issues in many of the designs (such as clashes between drawings from different design disciplines and clashes between drawings and existing services), in addition to the design issues referenced in the Brannigan Report. The additional deficiencies identified by the Plaintiff were subsequently added to Schedule V in the 'Deficiencies/Brannigan Report' column.
As at the date of this affidavit, there are no RFIs remaining for my team to review (out of the 7,311 known RFIs). There are approximately 900 potentially relevant RFIs which remain to be reviewed by the Plaintiff's personnel.
The pleading and particularisation of the General Drawing Deficiencies claim has, since 4 April 2019, required a massive amount of work by my team and by the Plaintiff.
The only issued [sic] disclosed in KWM's 26 September letter left to be addressed is the provision of particulars of the hours taken by the Plaintiff's personnel to address each of the deficiencies. The Plaintiff is addressing this issue as quickly as it can. But as described below, it is a time consuming process and (together with the further RFI review work) will take some further weeks to complete.
... [A] further 6 weeks, from the date of the hearing, will be required to finalise all of the particulars of 'manhours' in the 'Hours/Quantum' column of Schedule V.
I am informed by the Plaintiff that the work of preparing the 'manhours' particulars can, at this stage, only be performed by a single employee and is a very time consuming task. The time required to prepare the 'manhours' particulars for each claim will differ. But I am informed that while some may take less than an hour, others may take several hours. Given that, at present, there are over 150 claims, the Plaintiff estimates that hundreds of hours of work will be required. The period of 6 weeks has been estimated taking into account the time required to undertake this work, together with the time that will be required to complete the RFI review work.
It is likely that the outcome of the review of the further 900 RFIs will be the addition of further rows (claims of breach) in Schedule V. I believe that work, of adding further rows into Schedule V, can be done within a short time after the review is completed, and within the 6 week period contemplated for the completion of the 'manhours' particulars.
The plaintiff's written submissions of 7 October 2019
... [T]he Plaintiff seeks leave to plead conventional damages claims. It does not advance a global claim.
The amended particulars state that the defective drawings are identified in the column entitled 'IFC Drawing Reference' in Schedule V [to the SFASSOC minute].
... these additional defects have emerged as a result of the review which has been undertaken by [Ms Crepin's] team and the Plaintiff over the last month ...
(c) RFIs record requests for information made by the Plaintiff to obtain information to overcome the deficiencies ([14], particular (a));
(d) sketches were prepared by the Defendant for the purpose of seeking to overcome the deficiencies in the drawings, and had to be reviewed by the Plaintiff ([14], particular (b));
(e) correspondence (of which there are various kinds, each with its own identified code) record the various steps taken to identify and overcome the deficiencies ([14], particular (c)).
The quantum of damage for each claim is the product of the hours of rectification work done by relevant personnel and the hourly rate of those personnel.
The current absence of particulars of 'man hours' is not a defect in the pleaded case. A claim for unliquidated damages may be quantified in a Plaintiff's evidence. But in the present case, the Plaintiff is not withholding anything. It requires more time to provide those particulars'.
But, even so, it is for the plaintiff to decide how it will quantify this loss but the Court will expect it to do so by showing, in a case such as the present, that the breach caused Ipex to perform certain extra work which is valued at a certain sum unless this evidence is not obtainable ...
applying observations of Brooking J in JLW (Vic) Pty Ltd v Tsiloglou [1994] VicRp 16; [1994] 1 VR 237, 241 and the cases there referred.
Evaluation and decision as to leave to replead pars [14] and [15]
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
(2006) 33 WAR 82