Hanjin Shipping Australia Pty Ltd v IWS Australia and New Zealand Pty Ltd

Hanjin Shipping Australia Pty Ltd (Hanjin) and IWS Australia and New Zealand Pty Ltd (IWS) were parties to a dispute before Emmett J of the Federal Court of Australia. The core of the disagreement concerned the interpretation and enforceability of a deed of release and indemnity, which Hanjin sought to rely upon to avoid liability for certain alleged breaches of contract. IWS, however, contended that the deed was not effective to release Hanjin from its obligations.

The primary legal issue before the court was whether the deed of release and indemnity, as drafted and executed, operated to discharge Hanjin from liability for the specific breaches of contract alleged by IWS. This required the court to consider the principles of contractual interpretation, particularly in relation to the scope and effect of release clauses, and the circumstances under which a party might be estopped from relying on such a deed.

Emmett J's reasoning focused on the plain language of the deed and the surrounding circumstances at the time of its execution. His Honour applied the established principles of contractual interpretation, which require that the words of a contract be given their ordinary and natural meaning, read in their context. The court found that the wording of the deed was sufficiently broad to encompass the claims being made by IWS, and that there was no evidence to suggest that the parties intended to exclude such claims from the operation of the release. Consequently, Hanjin was entitled to rely on the deed to defend against IWS's claims.