APPENDIX A
DEED OF AGREEMENT
BETWEEN MICHAEL AND JUDITH ROBSON of [address] ("the homeowner")
AND THE WHITE ANT COMPANY PTY LTD ACN 100 706 009 of [address] ("the contractor")
RECITALS
A) Michael & Judy Robson are the registered proprietors of the property known as [address] ("the property").
B) Michael & Judy Robson caused a residence to be constructed on the property ("the home").
C) In the course of construction of the home, the contractor was retained by the homeowner to install a termite barrier system for termite prevention within the home ("the procedure").
D) The homeowner has subsequently located termite infestation within the home and it is alleged that following a visual termite inspection of the home on or about 10 June 2008, termites have breached the termite barrier system rendering significant damage to the home.
E) The homeowner alleges that the damage is due to a breach in the termite barrier system as a consequence of defective workmanship on the part of the contractor and the allegation is not omitted [sic; scilicet admitted] by the contractor ("the dispute").
F) The parties have engaged in Mediation on 10 February 2009 and have agreed to resolve the dispute on an interim basis in accordance with the terms and conditions of this Agreement.
THE PARTIES AGREE AS FOLLOWS:-
1. The contractor shall forthwith and no later than 28 days from the date this Agreement commences [do] all such necessary works at its expense to restrain and minimise any further termite activity in the home and undertake all such investigations to determine conclusively whether or not the termite infestation in the home is due to a breach of the termite tight [sic; scilicet Termite Tite] barrier system.
2. The homeowner shall provide all such consents and all such assistance to facilitate the works to be performed.
3. The contractor will ensure that it effectively liaises with Elders Pest Control Pty Ltd to independently report and determine for the benefit of the homeowner the accuracy or otherwise of the finding of the contractor.
4. The homeowner hereto [sic; scilicet hereby] acknowledge[s] and agree[s] that in the event that the termite infestation to the home is due to a cause not referable to any negligent [sic] or breach of negligent conduct on the part of the contractor or any breach of any contractual obligation by it due to the homeowner it will reimburse the contractor all reasonable costs incurred by it in performing the works described herein.
5. The homeowner hereto [sic; scilicet hereby] acknowledge[s] and agree[s] that in the event that the termite infestation to the home is due to a cause not referable to any negligent [sic] or breach of negligent conduct on the part of the contractor or any breach of any contractual obligation by it due to the homeowner it will reimburse the contractor all reasonable costs incurred by it in investigating and treating the termite infestation and activity that was performed prior to the meeting of parties and on-site inspection on 10 February 2009.
6. The contractor acknowledges and agrees that in the event that the termite infestation is found to be due to any negligent work or breach of contract on its part to the homeowner it will provide all reasonably [sic] indemnities to the homeowner and be responsible for all reasonable cost of rectification to the home as determined by an independent building consultant who shall be briefed for these purposes and retained to report at the expense of the contractor.
6. [sic; scilicet 6A] Neither parties shall assign or [sic] any of their rights hereunder without the prior written consent of the other party.
7. This Agreement will anew [sic; scilicet renew] to the benefit of and binding on the excessors [sic; scilicet successors] and assigns of the parties and the parties shall not sell or assign, transfer or otherwise dispose of their rights under this Agreement without the expressed written consent of both parties hereto.
7. [sic; scilicet 8] This agreement is subject to all valid and applicable laws and regulations and in the event that the Agreement is found to be inconsistent with or contrary to any such valid laws and regulations the later [sic] shall prevail and this Agreement will be notified [sic] accordingly.
DISPUTE RESOLUTION
9.1 The parties hereto shall not commence any Court proceedings (except proceedings seeking interlocutory relief) in respect of a dispute arising out of this Agreement unless it has fully complied with the obligations set out hereunder.
9.2 A party claiming that a dispute has arisen under this Agreement must notify the other party giving details of the dispute within 21 days of the dispute arising.
9.3 During the 21 day period each party to the dispute must use its best endeavours to resolve the dispute.
9.4 If the disputants are unable to resolve the dispute within the initial period, each disputant agrees that the dispute must be referred for Mediation in accordance with the Mediation Rules of the Law Society of New South Wales at the request of any disputant, to: -
a) a Mediator agreed on by the disputants; or
b) if the disputants are unable to agree on a Mediator within 7 days after the end of the initial period it shall be a Mediator nominated by the then current Chairman of Leader or the Chairman's nominee.
9.5 The role of the Mediator is to assist in negotiating a resolution of the dispute. A Mediator may not make a decision that is binding on a disputant unless the disputant has so agreed in writing.
9.6 Any information or documents disclosed by a disputant under this clause:-
a) must be kept confidential; and
b) may not be used except to attempt to resolve the dispute.
9.6 [sic] Each disputant must bear its own costs of complying with this clause and the disputants must bear equally the cost of any Mediator engaged.
9.7 After the initial period, a disputant that has complied with clause 9.1, 9.2 & 9.3 may terminate the Dispute Resolution Process by giving notice to each other disputant.
9.8 If in relation to a dispute a disputant breaches any provision of clauses 9.1-9.6 inclusive, each other disputant need not comply with clause 9.1-9.6 inclusive in relation to that dispute.
10. Each party shall bear its' [sic] owns [sic] costs of an[d] incidental to this Agreement.
11. The parties acknowledge hereto [sic; scilicet hereby] that they have had the benefit of independent legal advice of and incidental to this Agreement and fully understand their respective obligations under it.
EXECUTED AS A DEED
SIGNED SEALED AND DELIVERED
[signature blocks of the Contractor and the Homeowner]
APPENDIX B
Extracts of the Homeowner's Written Submissions before the Primary Judge
[…]
Breach of the Installation Contract
2. [Statement of Claim paragraph 10] is the crucial paragraph. "It was a term of the [Deed] that the [Contractor] assumed the liability for the installation of the System by Termite Tite."
3. By that pleading the [Homeowner] explicitly claims that by Recital C of that Deed the Contractor, who is defined in the Deed as TWAC, was retained by the Homeowner, defined in the Deed as Mr and Mrs Robson, to install a termite barrier within the Robsons' home.
4. Implicit in the statement that the Contractor was retained to install a termite barrier is the fact that there was an agreement between the parties to that effect - the installation contract.
5. That installation contract is the "contract referred to in Recital C of the Deed" which is relied upon at [paragraphs] 10A, 13 and 21 of the [Statement of Claim].
6. On a reading of Recital C in the context of the entire Deed, there is no construction which could reasonably be put on Recital C other than that the [Contractor] was accepting liability for the installation of the termite barrier by Termite Tite.
7. By [paragraph] 10A of the [Statement of Claim], the [Homeowner] plead[s] that it was a term of that installation contract that the work would be done with due care and in a workmanlike manner.
8. The [Contractor] admits that implied term in its Defence at [paragraph] 1(a), although it denies any such contract existed.
9. It is breach of that term which is pleaded at [paragraph] 21 of the Statement of Claim.
10. It is acknowledged that the only operative particular upon which the Plaintiffs rely is that in [paragraph] 21(c) of the [Statement of Claim], being the failure to ensure that the joins in the protection System were completely covered and bonded by sufficient adhesive.
11. In the Reply filed by leave in Court on 5 November 2013, the [Homeowner] says that [the Contractor] is estopped by its statement in Recital C from now denying that it was a party to that Installation Contract.
[…]
Breach of the Investigation Term
[…]
19. That clause required two things to happen:
a. that [the Contractor] undertake investigations within 28 days; and
b. they undertake sufficient investigation to determine conclusively whether the cause of the termite infestation was due to breach of the barrier.
20. Your Honour, quite rightly in my submission, commented that for the issue of the cause of the termite infestation to be determined conclusively required that both parties be convinced by the results of the investigations as to the cause of the infestation. By the fact that these proceedings have been brought and defended it is obvious that the parties are not in agreement as to the cause of that infestation and it was not determined conclusively by any investigations carried out by [the Contractor].
[…]
25. The [Contractor] is clearly in breach of the second arm of the Investigation Clause.
26. As to damage arising as a result of that breach, because it was never determined whether the cause of the infestation was due to the [Contractor's] breach of the installation contract the [Homeowner] was denied the benefit of Clause 6 of the Deed.
[…]
29. If the Court finds that the termite infestation at the [Homeowner's] home is due to the breach of the installation contract by the [Contractor], the [Homeowner] submits that the cause could have been conclusively determined had the [Contractor] undertaken sufficient investigation as required by the Deed.
30. As a result of the breach of the Investigation Clause the [Homeowner] will have suffered damage, being the reasonable costs of rectification to the home.
Breach of the Liability Term
31. The Liability Term is contained in Clause 6 of the Deed and is pleaded at [paragraph 13] of the [Statement of Claim].
32. It is acknowledged that the Liability Term was contingent on the finding that the termite infestation at the [Homeowner's] home was due to the negligence or breach of contract by the [Contractor].
33. The [Homeowner] submits that the termite infestation was due to the breach by the [Contractor] of the installation contract, but accepts that no finding was made sufficient to enliven Clause 6 because of the breach of the Investigation Clause by the [Contractor].
34. The [Homeowner] does not press the breach of the Liability Clause but submits that if the termite infestation is found to be due to a breach of the installation contract by the [Contractor], then the [Homeowner] is entitled to the benefit of Clause 6 and is entitled to the reasonable costs of rectification of the home.