EXPECTATION PTY LTD -v- PINNACLE VRB LTD [2001] WASC 144 (S)

Link to Appeal :

[2004] WASCA 261

Jurisdiction:	SUPREME COURT OF WESTERN AUSTRALIA	Citation No:	[2001] WASC 144 (S)
Case No:	CIV:2463/2000	Heard:	15, 16, 19-23 FEBRUARY, 2-4, 7 & 9 MAY 2001, 18 FEBRUARY 2003
Coram:	MURRAY J	Delivered:	11/06/01
Supplementary Delivered:	5/09/03
No of pages:	10	Judgment Part:	1 of 1
Result:	Claim dismissed
Category:	B
PDF Version

Parties:	EXPECTATION PTY LTD (ACN 009 030 102) PINNACLE VRB LTD (ACN 060 111 784)
Catchwords:	Contract Term imposing obligation of good faith Requirements for breach Turns on own facts
Legislation:	Nil
Case References:	Central Exchange Ltd v Anaconda Nickel Ltd (2001) 24 WAR 382 Garry Rogers Motors (Aust) Pty Ltd v Subaru (Aust) Pty Ltd [1999] ATPR 41-703 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Bamco Villa Pty Ltd v Montedeen Pty Ltd [2001] VSC 192 Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd [1991] 24 NSWLR 1 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd & Anor (1991) 22 NSWLR 389 Courney & Fairbairn Ltd v Tolaini Brothers (Hotels) Ltd [1975] WLR 297 Far Horizons Pty Ltd v McDonalds Australia Pty Ltd [2000] VSC 310 Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR 151 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Wenzel v Australian Stock Exchange Limited [2002] FCAFC 400 White Industries (Qld) Pty td v Flower & Hart (1998) 156 ALR 169

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA

IN CIVIL

CITATION : EXPECTATION PTY LTD -v- PINNACLE VRB LTD [2001] WASC 144 (S) CORAM : MURRAY J HEARD : 15, 16, 19-23 FEBRUARY, 2-4, 7 & 9 MAY 2001, 18 FEBRUARY 2003 DELIVERED : 11 JUNE 2001 SUPPLEMENTARY
DECISION : 5 SEPTEMBER 2003 FILE NO/S : CIV 2463 of 2000 BETWEEN : EXPECTATION PTY LTD (ACN 009 030 102)

Plaintiff

AND

PINNACLE VRB LTD (ACN 060 111 784)

Defendant

Catchwords:

Contract - Term imposing obligation of good faith - Requirements for breach - Turns on own facts

Legislation:

Nil

Result:

Claim dismissed

(Page 2)

Category: B

Representation:

Counsel:

Plaintiff : Mr D M Stone

Defendant : Mr H Jolson QC & Mr G S Clarke

Solicitors:

Plaintiff : Williams & Hughes

Defendant : Keogh & Co

Case(s) referred to in judgment(s):

Central Exchange Ltd v Anaconda Nickel Ltd (2001) 24 WAR 382
Garry Rogers Motors (Aust) Pty Ltd v Subaru (Aust) Pty Ltd [1999] ATPR 41-703
Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41

Case(s) also cited:

Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349
Bamco Villa Pty Ltd v Montedeen Pty Ltd [2001] VSC 192
Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd [1991] 24 NSWLR 1
Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd & Anor (1991) 22 NSWLR 389
Courney & Fairbairn Ltd v Tolaini Brothers…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2001] WASC 144 (S)
Decision Date: 11 JUNE 2001

CaseChat Overview and Summary

Expectation Pty Ltd brought an action against Pinnacle VRB Ltd in the Federal Court of Australia. The plaintiff alleged that the defendant had breached a contractual obligation of good faith by failing to provide necessary information to enable the plaintiff to determine whether to exercise an option to purchase a property. The defendant, in turn, denied any such obligation existed and further argued that there was no breach of contract as the plaintiff had not suffered any loss or damage as a result of the defendant's alleged actions.

The court was required to decide whether the contract between the parties imposed an obligation of good faith and, if so, whether the defendant breached that obligation. The court considered the nature of the obligation of good faith in the context of the contract and the circumstances of the case. The court held that the contract did not impose an obligation of good faith and, in any event, the defendant had not breached any such obligation. The court found that the plaintiff had not suffered any loss or damage as a result of the defendant's alleged failure to provide information and that, therefore, there was no breach of contract.

The court dismissed the plaintiff's claim and made no orders as to costs. The court's decision highlights the importance of carefully considering the terms of a contract and the circumstances in which it was entered into when determining whether an obligation of good faith exists and whether it has been breached.

Orders

Orders of the court

Claim 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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