Byrne v Macquarie Group Services Australia Pty Ltd

The appeal concerned a dispute between Mr Byrne and Macquarie Group Services Australia Pty Ltd regarding the construction of a commercial contract, specifically a profit retention policy. The case was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was the interpretation of the profit retention policy as contained within the employment contract. The court was required to determine whether the natural and ordinary meaning of the words used in the policy was clear and unambiguous, and consequently, whether post-contractual conduct could be used to contradict the terms of the contract.

The Court of Appeal found that the profit retention policy was clear and unambiguous on its face. Applying the principles of contractual construction, the court held that where the language of a contract is plain and its meaning evident, extrinsic evidence, including post-contractual conduct, cannot be admitted to contradict or vary the express terms of the agreement. The court therefore dismissed the appeal.

Leave to appeal was granted, but the appeal itself was dismissed. The applicant, Mr Byrne, was ordered to pay the respondent's costs of both the leave application and the appeal.