A PAYOUT to an Albury construction company has been slashed after aircraft refurbishment company Douglas Aerospace took its case to the NSW Supreme Court.
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The District Court had ordered Douglas Aerospace pay Indistri Engineering Albury Pty Ltd $229,000 in disputed payments.
But in a judgment handed down by Justice Paul Brereton in the equity division this week, Douglas Aerospace was ordered to pay Indistri $122,280, slashing more than $100,000 off the amount.
Douglas engaged Indistri to build two hangars at Wagga’s Forest Hill airport.
The first hangar was completed in 2013, but work on the second building stopped in 2014 amid complaints by Douglas Aerospace about alleged defects.
The companies have been embroiled in legal claims and counter claims for about a year,.
Douglas Aerospace has filed another statement of claim against Indistri Engineering in the District Court asking for $205,000 for the cost of “rectification, plus restitution of overpayments and damages” in relation to the second hangar.
“Douglas now contends that, in respect of stage 2, it has been charged $418,000 for works which are worth only $213,000 ...” Justice Brereton said in his decision.
The long-running legal stoush has been watched closely by Wagga Council, which resolved in 2012 to loan Douglas Aerospace up to $2.5 million to build the hangars.
Several Wagga City councillors are known to be nervous about the large loan.
