Bunnings Group Limited v Chep Australia Limited (No 2)

Bunnings Group Limited appealed to the Court of Appeal of New South Wales against orders made by the Supreme Court in proceedings brought by Chep Australia Limited. The dispute concerned the proper calculation of a rebate payable by Chep to Bunnings under a supply agreement.

The Court of Appeal was required to determine whether the Supreme Court had erred in its construction of the rebate provisions within the supply agreement, specifically in relation to the calculation of the rebate amount and the consequential entitlement to restitution. The appeal also concerned the award of interest and the quantum of damages.

The Court of Appeal found that the Supreme Court had misconstrued the rebate provisions, leading to an incorrect calculation of the amount due to Bunnings. The Court applied principles of contractual interpretation, focusing on the plain meaning of the words used in the agreement and the commercial context. The Court allowed the appeal in part, setting aside the Supreme Court's judgment and ordering judgment for Bunnings in the sum of $1,262,317. Furthermore, the Court ordered Chep to pay Bunnings restitution in the sum of $12,213,483, plus pre-judgment interest. The respondents were also ordered to pay Bunnings' costs of the appeal.