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Huachi Gao v Xikun Chen [2016] NZDC 21776

Published 03 March 2017

Alleged breach of contract — counterclaim — causal connection to loss — March v E & M H Stramare Pty Limited [1991] 171 CLR 506 — Stapely v Gypsum Mines Limited [1953] AC 663. Applying a common sense approach to the facts of the case ("March"), the plaintiff was unable to demonstrate a nexus between the alleged breach of contract by the defendant and loss suffered ("Stapely"). Neither could the plaintiff claim loss of rent or penalty rates under the contract due to the ownership of the property and terms of the contract. The defendant's counterclaim was unsuccessful because of failure to clarify to the Court the costs outstanding for work done. As neither party had been successful, costs would lie where they fell. Judgment Date: 4 November 2016.

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