Coulson Aviation (Australia) Pty Ltd v Techfuel Pty Ltd (subject to deed of company arrangement)

Coulson Aviation (Australia) Pty Ltd (Coulson) appealed a decision of the primary judge concerning a contract for the supply of aviation fuel and services for aerial firefighting. The dispute arose between Coulson and Techfuel Pty Ltd (Techfuel), which was subject to a deed of company arrangement. Coulson contended that its obligations under the contract with Techfuel had automatically terminated or ceased when its separate contracts with third parties for the use of aircraft concluded.

The central legal issues before the Court of Appeal were the proper construction of the agreement between Coulson and Techfuel, specifically whether the contract automatically terminated or its obligations ceased upon the termination of Coulson's contracts with third-party aircraft suppliers. Additionally, the court had to determine the meaning of "start of the fire season" as it related to Techfuel's entitlement to a liquidated fee upon termination for convenience within 100 days of that event.

The Court of Appeal, comprising Leeming and McHugh JJA and Griffiths AJA, dismissed the appeal. The court reasoned that the contract between Coulson and Techfuel was not contingent on Coulson's ongoing contractual relationships with third-party aircraft suppliers. The termination of those separate contracts did not trigger an automatic termination or cessation of obligations under the agreement with Techfuel. Furthermore, the court construed "start of the fire season" in a manner that supported the primary judge's findings regarding Techfuel's entitlement to the liquidated fee.

The appeal was dismissed, and the parties were ordered to file and serve agreed orders as to costs within seven days, or in the absence of agreement, their respective sought orders, supporting evidence, and submissions not exceeding three pages, with a view to resolving costs on the papers.