[2025] WASC 467
General information, not legal advice.
Supreme Court of WA
2025-11-05
Strk J
Original judgment source is linked above.
ALTERNATIVE CAUSATION & LOSS AND DAMAGE: GLOBAL / MODIFIED TOTAL COSTS CLAIM
(a) but for each and all of [Wood & Grieve Engineers'] breaches of the Consultancy Agreement, as pleaded at paragraphs 43, 44 and 64 above, [CPB Contractors] would have completed the:
(i) Stage One Works without incurring the costs of the additional resources and preliminaries pleaded in paragraph 67 above;
(ii) Stage Two Works by the LD Milestone Dates for the Guaranteed Contract Sum without incurring the costs of the additional resources and preliminaries pleaded in paragraph 73 above;
(iii) Stage Two Works by the LD Milestone Dates for the Guaranteed Contract Sum without incurring the costs of the subcontractor and supplier variations and delay and disruption claims pleaded in paragraph 69 above;
(iv) Stage Two Works by the LD Milestone Dates for the Guaranteed Contract Sum without the cost to [CPB Contractors] of completing those works increasing and exceeding that contained in the Stage Two Offer;
(i) In relation to SWPs 7001, 3101, 4000, 6003 and 7002, and adjusting for budget transfers between the SWPs and approved variations to subcontractors (which are further particularised in Appendix L), the table below shows the calculation of [CPB Contractors'] loss for each SWP:
(ii) The costs set out in the sixth column of the above table do not include the amounts particularised at paragraphs 69, 73(i), 73(ii) or 73(iii) above.
(iii) Further particulars may be provided following discovery and the exchange of expert evidence prior to trial.
(b) if (which is denied) [CPB Contractors] is unable to identify with sufficient particularity any part or parts of its loss or damage, pleaded in paragraph 74 above, attributable to each or any of [Wood & Grieve Engineers'] breaches of the Consultancy Agreement, as pleaded at paragraphs 43, 44 and 64 above, that is because it is impractical to do so for reasons which are not attributable to any delay or other conduct of [CPB Contractors];
(i) There is a highly complex interaction between each of the 209 Stage Two Design Development and Contract Documentation, the 17,609 Revised Stage Two Design Development and Contract Documentation, the delay and disruptive impact on [CPB Contractors] and its hundreds of suppliers and subcontractors across the Elizabeth Quay Project, and the consequent impact on the progress of the Stage One Works and each of the interrelating 43 SWPs.
(ii) Further particulars will be provided following discovery and the exchange of expert evidence prior to trial.
(b-a) [CPB Contractors] is unable to identify with particularity that part or parts of its loss or damage, pleaded in paragraph 75(a)(iv) above, attributable to particular breaches of the Consultancy Agreement by [Wood & Grieve Engineers], as pleaded at paragraphs 43, 44 and 64 above, because it is impractical to do so for reasons which are not attributable to any delay or other conduct of [CPB Contractors];
(i) The particulars to paragraph 75(b) above are repeated.
(c) other than [Wood & Grieve Engineers'] breaches of the Consultancy Agreement, as pleaded at paragraphs 43, 44 and 64 above, there are no alternative causes of any significance of the loss or damage suffered by [CPB Contractors] as pleaded at paragraphs 74 and 75(a)(iv) above; and
(d) the additional costs incurred by [CPB Contractors] forming part of its loss or damage, being those pleaded at paragraphs 67, 73 and 75(a)(iv) above, were reasonably and necessarily incurred by [CPB Contractors] by reason of each or all of [Wood & Grieve Engineers'] breaches of the Consultancy Agreement, as pleaded at paragraphs 43, 44 and 64 above.
REVISED MINUTE OF ORDERS FOR PARTICULARS OF QUANTUM
Set out below is the revised wording of the Orders sought:
(a) each item of actual cost incurred in respect of each SWP listed in the Table, being SWPs: 7001, 3101, 4001, 4004, 6003, 7002, 4406, including but not limited to:
(i) a description of the cost, to what entity it was paid (and on what date) and in respect of which claim made by that entity;
(ii) identifying whether the cost was for:
(A) payment to an entity as part of an approved SWP;
(B) Direct Works carried out by [CPB Contractors];
(b) each payment [CPB Contractors] obtained from [The Metropolitan Redevelopment Authority] or any other entity in respect of the works the subject of each of the following SWPs: 7001, 3101, 4001, 4004, 6003, 7002, 4406, 2001, 1101, 3003, 6008, 9100, 3002, 4307, 4303, 9001, and 4401, including but not limited to:
(i) a description of the payment, its amount, from what entity it was paid (and on what date) and in respect of which claim made by [CPB Contractors];
(ii) how each of those payments were allocated to the SWPs listed in (a) above, including in relation any budget transfers;
(iii) identifying whether the payment was for:
(A) payment to an entity as part of an approved SWP;
(B) Direct Works carried out by [CPB Contractors];
(E) an allocation of the project risk and contingency payment;
(F) an allocation of the additional lump sum payment (made as part of the Lump Sum Contract);
(G) allocation of any other amounts received from any entities in respect of the works the subject of the relevant SWP.
(c) How the global loss claimed was caused or contributed to by (all of) the alleged breaches, including, but not limited to, identifying the alleged consequences of [Wood & Grieve Engineers'] breaches by reference to what impact they had on the works the subject of each SWP, which it is alleged caused the claimed additional costs to be incurred for each SWP.
Overview of the parties' positions Wood & Grieve Engineers' position
(a) each item of actual cost incurred in respect of SWP 7001, 3101, 4001, 4004, 6003, 7002, 4406, by way of a description of those costs, and an explanation for what each of those costs were for;
(b) each payment CPB Contractors obtained in respect of SWP 7001, 3101, 4001, 4004, 6003, 7002, 4406 and other SWPs, a description of each of those payments, how those payments were allocated to a SWP, and an explanation for what each of those payments were for; and
(c) how the global loss claimed by the CPB Contractors was caused or contributed to by (all of) the breaches alleged against Wood & Grieve Engineers.
(a) prepare its defence and to comply with the Court's orders (which include an order that non-expert evidence be filed by 27 March 2026 and that by 10 March 2026 the parties confer with a view of identifying the respective disciplines of expert evidence to be led at trial, a list of issues or questions for expert evidence and the material to be provided to the experts for them to consider as part of preparing their expert reports);[13] and
(b) efficiently review the (in the order of 200,000) discovered documents as part of preparing its defence.[14]
(a) the provision of further particulars is contemplated in the pleading itself;
(b) the extent CPB Contractors needs to review its records to provide such details, discovery has now been completed (and took a considerable time);
(c) there is no proper basis for CPB Contractors to assert that it has to procure its expert evidence in order to provide the particulars requested. (That is, CPB Contractors must have known the basis for the pleading when it pleaded the matters it did in paragraph 75. While expert evidence may supplement other aspects of CPB Contractors' case, it cannot change the facts that were the basis for the matters currently pleaded); and
(d) Wood & Grieve Engineers needs to be able to understand how CPB Contractors' claimed loss is derived in order to be able to understand the case it has to meet and prepare its defence.
(a) what the global figure pleaded for the actual costs incurred is made up of for each item of cost CPB Contractors relies upon for calculating its alleged loss (including, for example, what subcontractors, suppliers, consultants, or other CPB Contractors resources performed the relevant works for the SWP resulting in the amounts making up the global sum pleaded in the fourth column of the Table being incurred); and
(b) what amounts were in fact received by CPB Contractors in respect of each item of cost (including, for example, what amounts were actually paid to CPB Contractors (by the Metropolitan Redevelopment Authority or other entities) in respect of each item of work done by those subcontractors, suppliers, consultants, or other CPB Contractors resources for performing the relevant works for the SWP).
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 a proceeding, must depend upon an examination of the pleading itself and the claim which it makes. The fundamental concern of the court is that the dispute between the parties should be determined expeditiously and economically and, above all, fairly. Where the proceeding is being managed in a specialist list, the judge, whose task it is to steer the case through its interlocutory stages, might, and perhaps should, explore the claim to determine whether the form it takes is driven by its nature and complexity, or by a desire to conceal its bogus nature by presenting it in a snowstorm of unrelated and insufficiently particularised allegations, or by a desire to disadvantage the defendant in some way. Relevant to this is an acknowledgment that a total cost claim puts a burden on the defendant. This burden may involve the defendant in extensive discovery of documents relating to the performance of the project; it may mean that at trial the defendant must cross-examine the plaintiff's witnesses to expose the flaws in a claim which assumes that the defendant is, itself, responsible for every item of the plaintiff's cost overrun; it may mean that the defendant must lead evidence to explain what, in fact, was the impact of each of the acts complained of on the project, as was done in McAlpine Humberoak Ltd v McDermott International Inc (No 1). Litigation inevitably imposes burdens on the parties; the court must exercise its powers to ensure that, as far as possible, these burdens are not unreasonable and are not unnecessarily imposed.
In my opinion, the court should approach a total cost claim with a great deal of caution, even distrust. I would not, however, elevate this suspicion to the level of concluding that such a claim should be treated as prima facie bad. Nevertheless, the point of logical weakness inherent in such claims, the causal nexus between the wrongful acts or omissions of the defendant and the loss of the plaintiff, must be addressed. I put to one side the straightforward case where each aspect of the nexus is apparent from the nature of the breach and loss as alleged. In such a case the objectives of the pleading may be achieved by a short statement of the facts giving rise to the causal nexus. If it is necessary for the given case for this to be supported by particulars, this should be done. But, in other cases, each aspect of the nexus must be fully set out in the pleading unless its probable existence is demonstrated by evidence or argument and further, it is demonstrated that it is impossible or impractical for it to be spelt out further in the pleading. Moreover, the court should be assiduous in pressing the plaintiff to set out this nexus with sufficient particularity to enable the defendant to know exactly what is the case it is required to meet and to enable the defendant to direct its discovery and its attention generally to that case. And it should not be overlooked that an important means of achieving the result that, once it starts, the trial should be conducted without undue prejudice, embarrassment and delay, is by ensuring that, when it begins, the issues between the parties including this nexus are defined with sufficient particularity to enable the trial judge to address the issues, to rule on relevance and generally to contain the parties to those issues. An order to this effect in a global claim was made by the Official Referee in Imperial Chemical Industries Plc v Bovis Construction Ltd, and by Moynihan J in Ralph M Lee Pty Ltd v Gardiner & Naylor Industries Pty Ltd. And if, in such a case, the plaintiff fails to demonstrate this causal nexus in sufficient detail because it is unable or unwilling to do so, then this may provide the occasion for the court to relieve the defendant of the unreasonable burden which the plaintiff would impose on it. [Footnotes omitted]
The danger of this method of presenting such a claim is that it tends to shift to the defendant the task of demonstrating that the other factors for which it is not legally responsible played such a causative role. It is for this reason that the plea may be rejected as embarrassing. But this conclusion will not follow in every case. As Smith J pointed out in Nauru Phosphate Royalties Trust v Matthew Hall Mechanical and Electrical Engineers Ltd, the fact that the evidentiary or shifting burden may pass to the defendant on a given issue does not detract from the obligation of Ipex to prove on the balance of probabilities at the end of the day that the extra FTEs and their cost have in fact been caused by the increase in the number of Help Desk calls. It must be accepted in the context of adversary litigation that this may be so and that a plaintiff has no obligation to make things easy for its adversary. Nevertheless, it cannot be gainsaid that, as a matter of forensic reality, this will often impose a great burden upon the defendant which, in many cases, is less able than the plaintiff to know what occurred from day to day and the Court will be concerned that this burden be not an unnecessary or unreasonable one. It is for this reason that the Court will be inclined to require the plaintiff to bring forward 'the precise evidence' of its loss which is within its power or to show why that is not reasonable or practicable. [Footnotes omitted]
(a) the Court should not be satisfied that there is a sufficient basis to exercise its discretion to grant the leave sought;
(b) alternatively, Wood & Grieve Engineers is not entitled to the particulars sought because they are a request for evidence; and
(c) in the further alternative, Wood & Grieve Engineers' request ought to be denied when regard is had to case management principles.
(a) there has been significant delay in making the request, as paragraph 75(a)(iv) and Appendix L have remained unchanged for over three and a half years (that is, since the filing of the amended statement of claim on 14 February 2022);
(b) Wood & Grieve Engineers has provided no explanation, much less any reasonable explanation, for the cause of its delay in making the requests, other than an asserted reliance on CPB Contractors' statement in its further amended pleading that further particulars of paragraph 75(a)(iv) may be provided after discovery and the exchange of expert evidence (the latter of which has not yet occurred);
(c) Wood & Grieve Engineers did not need the particulars to adequately plead its defence and counterclaim, amended defence and counterclaim or re‑amended defence and counterclaim (filed on 26 August 2022, 10 October 2022 and 21 December 2022, respectively); and
(d) no proper explanation is provided of the need for the particulars (to the extent they are in fact particulars) to be provided now, rather than after the exchange of expert evidence, other than referring to the potential for a summary dismissal or a strike out application,[32] and seeking to avoid the work associated with having to 'go and sift through' the documents Wood & Grieve Engineers requested from CPB Contractors by way of targeted discovery orders.[33] CPB Contractors maintains that none of these reasons provide a proper basis for ordering the provision of further particulars, particularly when the process for the preparation and exchange of expert and lay evidence has now commenced, and a trial is not expected to take place until at least 2027.
The court discourages disputes relating to pleading issues which consume substantial amounts of time and expense which is often disproportionate to their significance to the just and effective resolution of the case. The approach of the court to pleading disputes must take into account the purposes of pleading. Those purposes relevantly include informing the court and the other parties of the case of the party putting forward the pleading. The contemporary role of pleadings has to be viewed in the context of contemporary case management techniques and pre-trial directions which include the preparation of a trial bundle identifying the documents that are to be adduced in evidence in the course of the trial and the exchange of witness statements and expert reports prior to trial. Nevertheless, the fundamental proposition concerning pleadings is that a party is entitled to be informed about the opponent's case with sufficient clarity to allow that party a fair opportunity to meet the case. The court will intervene if the parties do not identify with reasonable precision just what is and what is not in dispute.
(a) CPB Contractors' pleaded claims were sufficiently clear so as to allow a defence to be filed;
(b) regardless of the outcome of this application, Wood & Grieve Engineers agree to provide source documents for the actual costs referred to in the Table at paragraph 75(a)(iv) of the further amended statement of claim; and each payment from the Metropolitan Redevelopment Authority or any other entity in respect of the works the subject of the following SWPs: 7001, 3101, 4001, 4004, 6003, 7002, 4406 (which documents I understand have been discovered in the proceeding).[55] While CPB Contractors will likely still engage in an extensive review of the documents discovered, the burden is somewhat lightened by the agreed identification of evidence within the extensive discovery;
(c) the need for the provision of further particulars (or the urgency of the need) is ameliorated by the orders made to date concerning the filing and service of lay and expert evidence prior to trial. That is, by 28 November 2025 CPB Contractors must provide Wood & Grieve Engineers with an indication of the respective disciplines of expert evidence intended to be led at trial, a list of issues or questions for expert evidence and the material to be provided to the experts for them to consider as part of preparing their reports. In this case, compliance with the orders made to date with respect to lay and expert evidence, and then the filing of that evidence, ought result in Wood & Grieve Engineers knowing well in advance of trial what evidence will be put against it.
Sch A - Appendix L to the further amended statement of claim
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Metropolitan Redevelopment Authority Act 2011 (WA), s 4; further amended statement of claim filed on 22 March 2022, pars 3 - 5; re-amended defence and counterclaim filed on 21 December 2022, pars 3 - 5.
[2] Further amended statement of claim filed on 22 March 2022, par 2; re-amended defence and counterclaim filed on 21 December 2022, par 2.
[3] Further amended statement of claim filed on 22 March 2022, par 6; re-amended defence and counterclaim filed on 21 December 2022, par 6.
[4] Further amended statement of claim filed on 22 March 2022, pars 9 - 11; re-amended defence and counterclaim filed on 21 December 2022, par 6.
[5] Re-amended defence and counterclaim filed on 21 December 2022.
[6] CPB Contractors' outline of submissions filed on 19 September 2025, pars 3 - 12.
[8] Orders 19 - 22 of the orders made on 27 August 2025.
[9] CPB Contractors' outline of submissions filed on 19 September 2025, pars 11 - 12, Attachment A.
[10] Further amended statement of claim filed on 22 March 2022, par 75. In the pleading, 'SWP' means subwork package.
[11] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 2.
[12] Wood & Grieve Engineers' outline of submissions in reply filed on 26 September 2025, par 1.
[13] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 6, referring to the orders made on 27 August 2025. See also ts 192 - 193, 203, 206, 220 (14 October 2025).
[14] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 6. See also ts 193, 203 (14 October 2025).
[15] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 7.
[16] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, pars 8, 10.
[17] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 10.
[18] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 11.
[19] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, pars 13 - 15.
[20] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, pars 16 - 17.
[21] Wood & Grieve Engineers' revised minute of proposed orders and outline of submissions filed on 4 September 2025, par 20.
[22] John Holland Construction & Engineering Pty Ltd v Kvaerner RJ Brown Pty Ltd [20].
[23] Built Environs WA Pty Ltd v Perth Airport Pty Ltd [No 3] [89]; ts 197 - 199 (14 October 2025).
[24] Ipex ITG Pty Ltd v Melbourne Water Corporation [No 3] [29].
[25] Ipex ITG Pty Ltd v Melbourne Water Corporation [No 3] [30].
[27] Wood & Grieve Engineers' outline of submissions in reply filed on 26 September 2025, par 2.
[28] Wood & Grieve Engineers' outline of submissions in reply filed on 26 September 2025, par 16.
[29] Wood & Grieve Engineers' outline of submissions in reply filed on 26 September 2025, par 10; ts 206 (14 October 2025).
[30] CPB Contractors' outline of submissions filed on 19 September 2025, par 2.
[31] CPB Contractors' outline of submissions filed on 19 September 2025, par 19.
[32] CPB Contractors' outline of submissions filed on 19 September 2025, par 19(d), footnote 4, referring to ts 171 - 172 (27 August 2025).
[33] CPB Contractors' outline of submissions filed on 19 September 2025, par 19(d), footnote 4, referring to ts 171 (27 August 2025).
[34] CPB Contractors' outline of submissions filed on 19 September 2025, par 20, citing Barclay Mowlem Construction Ltd v Dampier Port Authority [2006] WASC 281; (2006) 33 WAR 82 [16].
[35] CPB Contractors' outline of submissions filed on 19 September 2025, par 21, citing Dow Corning Australia Pty Ltd v Girys [6] - [10]. See the Rules of the Supreme Court O 20 r 8(1).
[36] CPB Contractors' outline of submissions filed on 19 September 2025, par 26, referring to ts 175 - 176 (27 August 2025).
[37] CPB Contractors' outline of submissions filed on 19 September 2025, par 26.
[38] CPB Contractors' outline of submissions filed on 19 September 2025, pars 27 - 28.
[39] CPB Contractors' outline of submissions filed on 19 September 2025, par 22.
[40] CPB Contractors' outline of submissions filed on 19 September 2025, par 23, citing Wright Prospecting Pty Ltd v Hancock Prospecting Pty Ltd [No 6] [2016] WASC 218 [46].
[41] CPB Contractors' outline of submissions filed on 19 September 2025, pars 23 - 24, referring to orders 13 ‑ 15 of the orders made on 27 August 2025.
[43] CPB Contractors' outline of submissions filed on 19 September 2025, par 15.
[44] Wood & Grieve Engineers' outline of submissions in reply filed on 26 September 2025, pars 17 - 30.
[46] LexisNexis, Civil Procedure Western Australia (at 4 November 2025) [59.9.4], citing Wildflower Electrical Refrigeration Service (WA) v Refrigid Pty Ltd [2014] WASC 382 [14].
[47] LexisNexis, Civil Procedure Western Australia (at 4 November 2025) [59.9.4], citing Murray Riverside Pty Ltd v Toscana (WA) Ravenswood Estate Pty Ltd [2022] WASCA 67 [60].
[49] ts 168 - 181 (27 August 2025); ts 190 (14 October 2025).
[50] Dow Corning Australia Pty Ltd v Girys [37].
[52] Jensen v Nationwide News Pty Ltd [No 2] [2018] WASC 129 [29].
[53] Bass v TCN Channel Nine Pty Ltd [2006] NSWCA 343 [43].
[54] John Holland Construction & Engineering Pty Ltd v Kvaerner RJ Brown Pty Ltd [23], cited with approval in DM Drainage & Constructions Pty Ltd as trustee for DM Unit Trust t/as DM Civil v Karara Mining Ltd [2014] WASC 170 [72].
[55] CPB Contractors' outline of submissions filed on 19 September 2025, pars 11 - 12, Attachment A; ts 221 ‑ 222 (14 October 2025).
(1996) 8 VR 681
(2006) 33 WAR 82