Cases - Hanak v Green

Record details

Name

Hanak v Green

Date

[1958]

Citation

2 QB 9

Legislation

Judicature Acts

Keywords

Equitable set-off - payment - claims and counterclaims

Summary

The employer sued the builder for damages for failing to complete or properly complete certain items of work on a residential building project. The builder counterclaimed for the following:

1. payment on a quantum meruit basis for work done outside the contractual scope of works;
2. losses caused by the employer's refusal to allow access to the property during the project; and
3. a small amount as damages for trespass on the grounds that the employer had thrown away some of the builder's tools during the project.

The employer succeeded in her claim, but the builder recovered a greater amount on his counterclaim. The builder asked the court to allow a set-off of the amounts recovered on his claim, rather than giving two separate judgments on the claim and counterclaim, so as to reflect the fact that he was the overall winner for costs purposes.

The court held that both the claim and the counterclaims arose out of and were closely connected with the same transaction, namely the building contract between the parties. It would not be equitable for the employer to recover damages for defective work without taking into account the builder's claims. Therefore, an equitable set-off of the builder's counterclaim was allowed.