FACTS
Giuseppe and Matthew Carbone (the Owners) entered into standard form contracts with Fowler Homes Pty Ltd (the Builder) for the construction of duplexes on their properties in Oran Park, NSW. The contracts specified a “Building Period” of no more than 48 weeks and included a liquidated damages clause that set a nominal amount of AUD 1 per day for delays.
The Builder delayed completion beyond the agreed period, and the Owners sought general (unliquidated) damages for lost rent due to the delay. The Builder argued that the nominal liquidated damages clause was the sole remedy available to the Owners, effectively barring them from claiming any further damages.
ISSUES
Does a nominal liquidated damages clause (AUD 1 per day) prevent an owner from claiming general damages for delay?
FINDING…
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