Great Northern Developments Pty Ltd v Lane

Case [2021] NSWCA 150


Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Great Northern Developments Pty Ltd v Lane [2021] NSWCA 150
Hearing dates: 5 May 2021
Decision date: 21 July 2021
Before: Bathurst CJ at [1];
Leeming JA at [79];
Emmett AJA at [106]
Decision:

(1)   Appeal allowed in part.

(2)   Set aside Order 1 of the orders made by the primary judge and in lieu thereof enter judgment for the plaintiff against the defendant in the sum of $126,097.13.

(3)   Order the appellant pay the respondent’s costs of the appeal.

Catchwords:

APPEALS – right of appeal – scope of right – excess or lack of jurisdiction below – jurisdiction of the District Court – where there is a common law cause of action for money had and received

APPEALS – right of appeal – scope of right – excess or lack of jurisdiction below – jurisdiction of the District Court – whether proceeding is for “relief against fraud of mistake” – District Court Act 1973 (NSW), s 134

CONTRACTS – breach of contract – consequences of breach – right to damages – where total failure of consideration

CONTRACTS – termination – consequences of termination – restitutionary claims – where total failure of consideration

JUDGMENTS AND ORDERS – interest – pre-judgment interest – rate applicable – where respondent succeeded on restitutionary claim – whether it was open to the primary judge to select the same rate of interest agreed to by the parties – Civil Procedure Act 2005 (NSW), s 100

Legislation Cited:

Civil Procedure Act 2005 (NSW)

District Court Act 1973 (NSW)

District Courts Act 1858 (NSW)

Law Reform (Law and Equity) Act 1972 (NSW)

Cases Cited:

Alati v Kruger (1955) 94 CLR 216; [1955] HCA 64

Anthony Hordern & Sons Ltd v Amalgamated Clothing and Allied Trades Union of Australia (1932) 47 CLR 1; [1932] HCA 9

Baltic Shipping Co v Dillon (1993) 176 CLR 344; [1993] HCA 4

Commonwealth Bank of Australia v Hadfield (2001) 53 NSWLR 614; [2001] NSWCA 440

David Securities Pty Ltd v Commonwealth Bank of Australia (1992) 175 CLR 353; [1992] HCA 48

Fistar v Riverwood Legion and Community Club Ltd (2016) 91 NSWLR 732; [2016] NSWCA 81

Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407

Hopkins v Governor-General of Australia [2013] NSWCA 365; 303 ALR 157

Lane v Great Northern Developments (District Court (NSW), Strathdee J, 16 February 2021, unrep

Mann v Paterson Constructions Pty Limited (2019) 267 CLR 560; [2019] HCA 32

McCarthy v Federal Commissioner of Taxation (2013) 249 FCR 140; [2013] FCA 715

Minister for Immigration and Multicultural and Indigenous Affairs v B (2004) 219 CLR 365; [2004] HCA 20

Moses v Macferlan (1760) 2 Burr 1005

Nocton v Lord Ashburton [1914] AC 932

Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491

Re Culleton [2017] HCA 3; 91 ALJR 302

Re Wakim;…

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Details
AGLC
Great Northern Developments Pty Ltd v Lane [2021] NSWCA 150
Case
[2021] NSWCA 150
Decision Date

CaseChat Overview and Summary

Great Northern Developments Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against orders made by a primary judge in favour of Lane (the respondent). The dispute concerned a claim by the respondent for the recovery of money paid under a contract that had been terminated due to a total failure of consideration. The respondent sought restitution of the sum paid, arguing that the appellant had not performed its obligations under the agreement.

The Court of Appeal was required to determine, among other things, whether the District Court had jurisdiction to entertain the respondent's claim, particularly in light of the provisions of the *District Court Act 1973* (NSW) concerning appeals from decisions where there is an excess or lack of jurisdiction below, and whether the proceeding could be characterised as seeking "relief against fraud or mistake". The court also considered the appellant's entitlement to damages for breach of contract and the appropriate award of pre-judgment interest under the *Civil Procedure Act 2005* (NSW) on a restitutionary claim where the parties had previously agreed to a specific interest rate.

The Court of Appeal found that the District Court did have jurisdiction to hear the matter, as the respondent's claim was fundamentally one for money had and received arising from a total failure of consideration, which is a common law cause of action within the court's monetary jurisdiction. The court reasoned that the claim was not one for "relief against fraud or mistake" in the sense contemplated by s 134 of the *District Court Act 1973* (NSW) for the purposes of an appeal on jurisdictional grounds. Regarding interest, the court held that it was open to the primary judge to award pre-judgment interest at the rate agreed by the parties in the contract, even though the claim was for restitution, as this reflected a reasonable commercial rate.

The appeal was allowed in part. The Court of Appeal set aside the primary judge's original order and entered judgment for the respondent against the appellant in the sum of $126,097.13. The appellant was also ordered to pay the respondent's costs of the appeal.

Orders

Orders of the court

(1) Appeal allowed in part.

(2) Set aside Order 1 of the orders made by the primary judge and in lieu thereof enter judgment for the plaintiff against the defendant in the sum of $126,097.13.

(3) Order the appellant pay the respondent’s costs of the appeal.

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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