Expectation Pty Ltd v Pinnacle VRB Ltd

Case [2004] WASCA 261


EXPECTATION PTY LTD -v- PINNACLE VRB LIMITED [2004] WASCA 261



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2004] WASCA 261
THE FULL COURT (WA)
Case No:FUL:142/200311 AUGUST 2004
Coram:STEYTLER J
MCKECHNIE J
JENKINS J
16/11/04
38Judgment Part:1 of 1
Result: Appeal dismissed
B
PDF Version
Parties:EXPECTATION PTY LTD (ACN 009 030 102)
PINNACLE VRB LIMITED (ACN 060 111 784)

Catchwords:

Contract
Breach
Condition precedent to an agreement required parties to enter into formal licence agreements and a collaborative venture
Clause required parties to negotiate those agreements in good faith
Alleged breach of that clause
Whether trial Judge erred in finding respondent had not breached term requiring parties to negotiate in good faith
Whether trial Judge erred by finding appellant breached term requiring parties to negotiate in good faith when that finding was not open on the pleadings or on the way the case was run at trial
Turns on own facts

Legislation:

Nil

Case References:

Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd (2000) 22 WAR 101
Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR 600
Expectation Pty Ltd v Pinnacle VRB Ltd [2001] WASC 144
Expectation Pty Ltd v Pinnacle VRB Ltd [2002] WASCA 160

Aiton Australia Pty Ltd v Transfield Pty Ltd (1999) 153 FLR 236
Automasters Australia Pty Ltd v Bruness Pty Ltd (2003) Aust Contract Reports 90­162
Boyes v Colins (2000) 23 WAR 123
Central Exchange Ltd v Anaconda Nickel Ltd (2002) 26 WAR 33
Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR 1
Cohen v BBA Mortgage Corporation Pty Ltd, unreported; SCt of WA; Library No 980114; 17 March 1998
Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389
Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2002] FCA 1018
Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2004] FCAFC 48
Foran v Wright (1989) 168 CLR 385
Fox v Percy (2003) 214 CLR 118
Glover v Australian Ultra Concrete Floors Pty Ltd [2003] NSWCA 80
Khan v Armaguard Ltd [1994] 1 WLR 1204
Mahoney v Lindsay (1980) 55 ALJR 118
Paltara Pty Ltd v Dempster (1991) 6 WAR 85
Payless Superbarn (NSW) Pty Ltd v O'Gara (1990) 19 NSWLR 551
Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd (1954) 90 CLR 235
R v GEC (2001) 3 VR 334
Rooty Hill Medical Centre Pty Ltd v Gunther [2002] NSWCA 60
Smith v Advanced Electrics Pty Ltd [2003] QCA 432
Smith v Carbone Bros Pty Ltd, unreported; FCt SCt of WA; Library No 960369; 17 July 1996
Southwell v Tomomoto (1992) 109 FLR 12
State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (In Liq) (1999) 73 ALJR 306
Thiess Contractors Pty Ltd v Placer (Granny Smith) Pty Ltd (2000) 16 BCL 255
Walton Stores (Interstate) Ltd v Maher (1988) 164 CLR 387
White v Overland…

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Details
AGLC
Expectation Pty Ltd v Pinnacle VRB Ltd [2004] WASCA 261
Case
[2004] WASCA 261
Decision Date

CaseChat Overview and Summary

The case of Expectation Pty Ltd v Pinnacle VRB Ltd involved a dispute between two companies regarding the interpretation and application of contractual terms related to a condition precedent. The trial court found that Pinnacle VRB Ltd had not breached the term requiring the parties to negotiate in good faith, whereas Expectation Pty Ltd was found to have breached the same term. Expectation Pty Ltd appealed the decision of the trial court, arguing that the court had erred in its findings.

The primary legal issues the court had to address were whether the trial court was correct in finding that Pinnacle VRB Ltd had not breached the term requiring parties to negotiate in good faith, and whether the trial court erred in finding that Expectation Pty Ltd had breached the same term. The court also had to consider if the findings were open based on the pleadings or the way the case was run at trial.

The court, in dismissing the appeal, found that the trial judge's reasoning was sound and that the findings were consistent with the evidence presented. The court held that the trial judge's conclusion that Pinnacle VRB Ltd had not breached the term was supported by the evidence, and that the finding regarding Expectation Pty Ltd was also justified. The appeal was dismissed as there were no grounds to overturn the trial judge's decision.

Orders

Orders of the court

Appeal dismissed

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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