CMA Corporation Ltd v SNL Group Ltd

CMA Corporation Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning a dispute with SNL Group Ltd. The core of the dispute involved whether a binding contract existed between the parties and, if so, the nature of the consideration supporting the contractual promises.

The central legal issue before the Court of Appeal was whether the primary judge had denied the appellant procedural fairness by making findings regarding the existence of a binding contract and its consideration, matters that were not expressly pleaded. The court was required to determine if the trial had been conducted on a basis that went beyond the formal pleadings and, if so, whether this constituted a breach of procedural fairness.

The Court of Appeal found that there was no operative lack of procedural fairness. This conclusion was based on the fact that the parties had, in separate arbitration proceedings, expressly accepted that they were bound by the relevant contract. Consequently, the trial had, in substance, been conducted on a basis that acknowledged the existence of the contract, even if not explicitly pleaded in the current proceedings. The court therefore dismissed the appeal and ordered the appellants to pay the respondent's costs.