The Contracting Remedy: Mann v Paterson and the Curtailment of Restitution in Quantum Meruit

The High Court’s decision in Mann v Paterson Constructions Pty Ltd has severely limited the availability of restitution in quantum meruit where a party accepts repudiation of a contract. The High Court has adopted a restrictive approach by reserving quantum meruit for work where a contractual right to payment has not accrued. In circumstances where a contractual right to payment has accrued, a claim in damages for breach of contract is the appropriate remedy. Valuation of restitution in quantum meruit is now, generally, limited to the original contract price. This ensures that parties are no longer able to cherry-pick a claim in damages or restitution. Australia’s approach harmonises the primacy-subsidiary nature of the law of contract and restitution by generally limiting restitution to the parties’ original contractual allocation of risk.