Hexiva Pty Ltd v Lederer

Hexiva Pty Ltd brought a claim against Lederer for breach of contract, specifically in relation to a failure to use best endeavours to pay debts owed by Hexiva. The matter was heard in the Supreme Court of New South Wales. The primary dispute centred on the interpretation of a clause in a partnership agreement that required one party to use their best endeavours to pay debts owed by the partnership. Lederer argued that he had fulfilled this obligation, while Hexiva claimed that he had failed to do so.

The court was tasked with determining whether Lederer had breached his contractual obligation to use best endeavours to pay the debts owed by Hexiva. It also needed to consider whether Lederer had waived his right to dispute the breach and whether interest could be charged on the inter-partnership loan account as damages. The court further needed to examine whether there was a duty to mitigate applicable to a claim for a liquidated sum under the contract.

The court found that Lederer had indeed breached his obligation to use best endeavours to pay the debts owed by Hexiva. It ruled that Lederer had not waived his right to dispute the breach and that interest could be charged on the inter-partnership loan account as damages. The court held that there was no duty to mitigate applicable to a claim for a liquidated sum under the contract. The court ordered Lederer to pay damages to Hexiva, including interest on the outstanding debt. The court further held that the interest chargeable on the inter-partnership loan account was recoverable as damages.