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Mid Coast Road Services court appeal statement

Released on: 15 May 2017

Released on: 15 May 2017

Media Statement from Port Macquarie-Hastings Council General Manager, Craig Swift-McNair
regarding the decision around the MCRS Court Appeal:
 
In about 2013, PMHC fell into dispute with Mid Coast Road Services (MCRS) regarding services
provided by MCRS to Council.
 
The dispute was unable to be resolved between the parties and MCRS sued Council for more than
$2.0 million. On 13 December 2016, following a hearing, the Supreme Court found Council had
breached a contract and were ordered to pay MCRS $217,065 (plus interest), with the total cost
including interest being just over $247,000.
 
After careful consideration Council exercised its rights to appeal, asking the Court of Appeal to review
the decision. Today the Court of Appeal dismissed Councils appeal. Whilst disappointed we respect
the process and the decision.
 
The appeal was important for Council so as to clarify and obtain certainty about contractual terms
which are commonly used.
 
Whilst Council always prefers, where possible, to resolve disputes without the intervention of the
courts, in this case, the amount claimed for damages by MCRS was always denied by Council and
was ultimately unfounded, and as such it was an appropriate matter to be decided by the court.