Niugini Civil & Petroleum Ltd v West New Britain Development Corporation Ltd and Michael Gibson and West New Britain Provincial Government (2008) N3292

• Jurisdiction: Papua New Guinea
• Court: National Court
• Date: 26 March 2008
• Citation: (2008) N3292
• Docket Number: WS NO 1418 OF 2004
• Year: 2008

Full Title: WS NO 1418 OF 2004; Niugini Civil & Petroleum Ltd v West New Britain Development Corporation Ltd and Michael Gibson and West New Britain Provincial Government (2008) N3292

National Court: Cannings J

Judgment Delivered: 26 March 2008

CONTRACT—assessment of debts due under contract—assessment of damages for breach of contract.

The plaintiff commenced proceedings against the defendants, claiming debts due under a contract and damages for breach of contract. Default judgment was entered against the defendants. This was a trial on assessment of debt and damages.

Held:

(1) The debts claimed by the plaintiff have been adequately pleaded and proven and therefore judgment was entered in the sum of K237,349.88.

(2) The claim for damages for breach of contract has been inadequately particularised and suffers from a lack of evidence. However, the sum equal to 10% of the amount of the debt was awarded, ie K23,734.99.

(3) The total amount of debt and damages awarded was K261,084.87.

(4) Interest and costs are also payable by the defendant.

Cases cited:

Albert Baine v The State (1995) N1335; Cheong Supermarket Pty Ltd v Pery Muro [1987] PNGLR 24; Jonathan Mangope Paraia v The State (1995) N1343; Kopung Brothers Business Group v Sakawar Kasieng [1997] PNGLR 331; Livingston v Raywards Coal Co [1880] 5 App Cases 25; Misac Pokonoming v Jeffery Simiri, WS No 1596 of 2005, 26.10.07; Niugini Civil and Petroleum Ltd v West New Britain Development Corporation Ltd and Others (2005) N2909; Obed Lalip and Others v Fred Sikiot and The State (1996) N1457; Peter Wanis v Fred Sikiot and The State (1995) N1350; Yange Lagan and Others v The State (1995) N1369; Yooken Paklin v The State (2001) N2212

ASSESSMENT OF DEBT AND DAMAGES

This was a trial on assessment of debt and damages following the entry of default judgment in favour of the plaintiff.

26 March, 2008

1. CANNINGS J: This is a trial about assessment of debts due under a building contract and assessment of damages for breach of that contract.

2. The contract was between the plaintiff, Niugini Civil & Petroleum Ltd, and the first defendant, West New Britain Development Corporation Ltd. It was for upgrading and extension work on the accident and emergency department and the antenatal facility at Kimbe General Hospital. The contract was entered into in January 2002 and NCP completed the work in November 2002.

3. From January to July 2002, WNBDC paid NCP K500,624.38 for work done under the contract but then a dispute arose. WNBDC refused to pay any more and claimed that NCP still had to do remedial work.

COURT PROCEEDINGS

4. The...