Lumbers v W Cook Builders Pty Ltd (in liquidation)

Quantum meruit – Services performed and subcontractors paid - Entitlement to compensation - Appellants entered into oral agreement with building company for construction of domestic dwelling - Respondent performed some of the construction work - Appellants did not request respondent perform any services or pay any subcontractors - Whether claim for quantum meruit or money paid available.

Restitution – Unjust enrichment - Appellants accepted benefit of construction work performed by and at the expense of respondent - Claim that it would be unconscionable for appellants to retain benefit - Appellants made no direct request of respondent - Whether restitutionary claim available.

Contract – Domestic building contracts - "Cost plus" oral agreement between building company and owners - Informal reorganisation within building company's corporate group - Benefit and burden of oral agreement informally assigned by building company to related company - No notice given to owners of reorganisation or assignment - Some subcontractors paid directly by owners - Acknowledgement by building company that owners had met all progress claims made and paid all monies due under the oral agreement - Whether related company can demand compensation from owners for difference between amounts paid by owners and amounts outlaid by related company together with margin for supervision and profit.

Words and phrases – "expense", "free acceptance", "incontrovertible benefit", "unjust enrichment", "windfall".