Hickson v Goodman Fielder Limited

The High Court of Australia considered an appeal by Hickson against a decision of Goodman Fielder Limited. The dispute concerned the interpretation of a clause within a deed of settlement, specifically regarding the calculation of a payment due to Hickson.

The central legal issue before the High Court was whether the phrase "net profit" as used in the deed of settlement was to be interpreted according to accounting standards or in accordance with the ordinary meaning of the words, taking into account the context of the deed. The court was required to determine the correct method for calculating the profit figure upon which Hickson's entitlement was based.

The High Court held that the phrase "net profit" in the deed should be interpreted according to its ordinary meaning, informed by the context of the agreement, rather than by reference to specific accounting standards. The court reasoned that the parties had not expressly incorporated accounting standards into the deed, and therefore, the plain language of the clause, understood in its commercial context, was paramount. The court found that the calculation method adopted by Goodman Fielder did not accurately reflect the ordinary meaning of "net profit" as contemplated by the deed. The appeal was allowed, and the matter was remitted to the Federal Court for redetermination of the amount payable to Hickson.