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McGruddy v Spotless Facility Services Ltd [2020] NZDC 2800

Published 10 December 2021

Contractual arrangement — oral agreement — standing offer contract — waiver by estoppel — Limitation Act 2010 — Beneficial Finance Ltd v Brown [2017] NZHC 964 — Mouat v Clark Boyce [1992] 2 NZLR 559. This was a claim for travel costs associated with work undertaken ($48,641.04), termination of contract, loss of earnings and distress damages. The applicant was a painter and the respondent subcontracted painting work from another company for painting work required across the country. The applicant and 13 other painters were assigned work based on location and ability to cover their own expenses such as travel costs and accommodation. The head contracting company faced claims for breach of warranty, and the work associated with that company dwindled over time. The issues for determination were whether there had been a variation of the contract or waiver of terms of the contract which stipulated costs. The Judge held that there was a waiver by estoppel in the agreement, in which the applicant benefited by receiving more out of town work because he did not charge mileage. The claim for travel costs was dismissed. With regards to the claim for pay for the termination notice period, the Judge concluded that the contract came to an end because there was no more work available, as stipulated in the terms. The claim for loss of earnings was unable to be proven by the applicant, as was the claim for distress damages. All claims by the applicant were dismissed and judgment entered in favour of the respondent. Judgment Date: 24 February 2020.

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