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Breach of Contract in relation to Architectual Services

Berrigan Doube Lawyers are currently involved in proceedings against a developer company (“the Defendant”) in relation to a breach of contract. Our client was engaged as an architect by the Defendant to provide its services for a large development site in South-Eastern Victoria. The parties entered into an agreement whereby our client would provide architectural services to the Defendant for a fixed rate, and that any subsequent alterations or changes that were required by the Defendant would be an additional charge.

Throughout the course of the agreement, the Defendant requested numerous changes to the plans that our client prepared. Accordingly, our client incurred several additional fees and costs associated with making the requested changes and accordingly billed the Defendant.

The Defendant failed to pay the additional fees and costs of our client, but the parties were able to come to an instalment payment agreement in relation to the outstanding fees and costs. However, despite making a further agreement to pay our client’s outstanding fees and costs, the Defendant still refused to pay our client.

After seeking our advice, a Complaint was filed in the Magistrates’ Court for breach of contract on behalf of our client.

In a defensive manoeuvre, the Defendant filed a counterclaim alleging misrepresentation on the basis that our client represented that all services to be carried out by our client was to be done at a fixed price. The Defendant further alleged that it entered into the further agreement under economic duress.

As the counterclaim has exceeded the monetary jurisdiction of the Magistrates’ Court, the Defendant has elected to transfer proceedings to the Supreme Court of Victoria. We are currently awaiting the outcome of the application to transfer the proceedings.

Berrigan Doube Lawyers, together with our client, are also currently involved in discussions with our client’s professional indemnity insurer in relation to this claim.

If you have breach of contract matter, please do not hesitate to contact us for more information.