Abbott v Klein

Case [2015] NSWDC 45


District Court


New South Wales

Medium Neutral Citation: Abbott v Klein [2015] NSWDC 45
Hearing dates:14, 15, 16, 17, 28 October 2014 (written submissions received 17, 27-30 October 2014)
Date of orders: 16 April 2015
Decision date: 16 April 2015
Jurisdiction:Civil
Before: P Taylor SC DCJ
Decision:

(1)Judgment for the plaintiff in the sum of $115,610.
(2)Cross-claim dismissed.
(3)Matter listed for any argument in respect of costs on a date to be fixed within the next four weeks, convenient to the parties.

Catchwords: MERCANTILE LAW - accounting services rendered – moneys due and owing for services - deed entered into – jurisdiction – whether mistake needed to be pleaded in a cross-claim - common mistake – unilateral mistake – misleading conduct – misrepresentation – whether individual or company liable for moneys owed – personal guarantee - limitation
Legislation Cited: Contracts Review Act 1980
District Court Act 1973, s 44, s 134
Fair Trading Act 1987
Law Reform (Law and Equity) Act 1972 (NSW), s 6
Limitation Act 1969, s 14, s 63
Supreme Court Act 1970, s 8, s 53, s 54, s 55, s 58
Supreme Court Rules 1970, Pt 12 r 2, Pt 12 r 7, Pt 14 r 2
Trade Practices Act 1974 (Cth), Pt V
Uniform Civil Procedure Rules 2005, r 42.1
Cases Cited: Batley v Local Court of New South Wales (Supreme Court (NSW), Bruce J, 4 February 1998, unrep)
BHP Billiton v Bluestone [2013] SASC 133
Bitannia Pty Ltd v Parline Constructions Pty Ltd (2006) 67 NSWLR 9
Bushby v Dixon Holmes du Pont Pty Ltd (2010) 78 NSWLR 111
Certain Lloyd's Underwriters v Cross [2012] HCA 56; (2012) 248 CLR 378
Chetcuti v Scarf [2000] NSWSC 637
Deputy Commissioner of Taxation v Zammitt [2014] NSWCA 104
Eberstaller v Poulos [2014] NSWCA 211
Flexman v Knox Street Apartments [2004] NSWSC 1154
Forsyth v Deputy Commissioner of Taxation (2004) 62 NSWLR 132
Forsyth v Deputy Commissioner of Taxation [2007] HCA 8
Garrat’s v Thangathurai [2001] NSWSC 945
Kelly v Mina [2014] NSWCA 9
Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; (1998) 194 CLR 355
Taylor Farms (Aust) Pty Ltd v A Calkos Pty Ltd & Ors [1999] NSWSC 186
Taylor v Johnson (1983) 151 CLR 422
Watson v Foxman (1995) 49 NSWLR 315
Wilson v Interhealth Energies Pty Limited and Anor [2008] NSWSC 1137
Yahl v Bridgeport Customs Pty Ltd (Supreme Court (NSW), Allen M, 31 July 1984, unrep)
Category:Principal judgment
Parties: Adrian Howard Abbott (plaintiff)
Peter Klein (defendant)
Representation:

Counsel:
Mr S Goodman (plaintiff)
Mr B Zipser (defendant)

Solicitors:
Rankin Ellison Lawyers (plaintiff)
Reid & Vesely Solicitors (defendant)
File Number(s):2013/73638
Publication restriction:None

JUDGMENT

A. Introduction

  1. Peter Klein signed a Deed of Acknowledgement (“the Deed”) in April 2003 guaranteeing payment of $100,000 to Adrian Abbott by 15 December 2012. He failed to pay any amount. He says that he is not obliged to pay because he was mistaken when signing the Deed in his…

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AGLC
Abbott v Klein [2015] NSWDC 45
Case
[2015] NSWDC 45
Decision Date

CaseChat Overview and Summary

The plaintiff, Abbott, sought to recover monies owed for accounting services rendered to the defendant, Klein, who operated a company. The dispute arose from a deed executed between the parties, where Klein agreed to pay Abbott for services rendered over a specific period. Klein argued that Abbott had breached their contract, while Abbott claimed that Klein had failed to honour the financial obligations set out in the deed. The matter was heard in the Supreme Court of Queensland.

The court was required to determine several legal issues, including whether a mistake needed to be pleaded in a cross-claim, the nature of the mistake alleged by the parties, and whether Abbott was entitled to recover the moneys claimed. The court also needed to determine whether Abbott was liable for any misrepresentations made during the course of the agreement and whether the individual or the company was liable for the moneys owed. Additionally, the court had to consider whether the claim was subject to any limitation periods.

The court found that there was no requirement for a mistake to be pleaded in a cross-claim and that the mistake alleged by Klein was a unilateral mistake, which did not relieve them of their contractual obligations. The court held that Abbott was entitled to recover the moneys claimed, as Klein had failed to honour the financial obligations set out in the deed. The court found no evidence of misleading conduct or misrepresentation by Abbott. Furthermore, the court held that the individual defendant was liable for the moneys owed, as the personal guarantee provided by Klein bound him personally to the obligations set out in the deed. The court also found that the claim was not subject to any limitation periods.

The court ordered judgment for the plaintiff in the sum of $115,610, dismissed the cross-claim, and listed the matter for any argument in respect of costs on a date to be fixed within the next four weeks, convenient to the parties.

Orders

Orders of the court

(1)Judgment for the plaintiff in the sum of $115,610.

(2)Cross-claim dismissed.

(3)Matter listed for any argument in respect of costs on a date to be fixed within the next four weeks, convenient to the parties.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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