| IN THE SUPREME COURT OF VICTORIA | Not Restricted | |
AT MELBOURNE
COMMON LAW DIVISION
No. 2068 of 2001
| IGA DISTRIBUTION PTY LTD | Plaintiff |
| v | |
| KING & TAYLOR PTY LTD | First Defendant |
| DELAHEY PROPERTIES PTY LTD | Second Defendant |
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RULING NO. 6
JUDGE: | Nettle J | |
WHERE HELD: | Melbourne | |
DATES OF HEARING: | 12 September 2002 | |
DATE OF RULING: | 12 September 2002 | |
CASE MAY BE CITED AS: | IGA Distribution Pty Ltd v King & Taylor Pty Ltd and anor | |
MEDIUM NEUTRAL CITATION: | [2002] VSC 406 | |
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr R.M. Garratt QC | Cornwall Stodart |
| For the First Defendant | Mr J.D. Hammond QC | Richard Szental |
| For the Second Defendant | Mr P.J. Hayes with Ms L. Hannon | Efron & Associates |
HIS HONOUR:
Application has been made by Mr Hammond QC, on behalf of the firstnamed defendant, further to amend the firstnamed defendant’s defence and counterclaim: to add an allegation that it was an implied term of the agreement for lease made between the plaintiff and the firstnamed defendant, that the firstnamed defendant would furnish to King & Taylor an estimate of total rent.
The allegation is that the term is to be implied in order to give business efficacy to the agreement and as a consequence of the terms of s. 83A of the Stamps Act 1958.
It is also sought to allege that the term was breached by the failure or refusal of the firstnamed defendant to provide the estimate in accordance with the term.
Mr Garratt does not oppose the amendment, provided it is clear that it is not sought by the firstnamed defendant to rely on facts other than those which are already the subject of the evidence or the proposed evidence contained in the witness statements that have been filed.
Mr Hammond has made plain that he wishes only to contend that the term which he would allege is one which is implied as a matter of law from the need to give business efficacy to the agreement or, as I would take it, a term of the Moorcock variety.
In those circumstances, and notwithstanding the lateness of the application, it seems to me that there is no prejudice which would be caused to the plaintiff and the secondnamed defendant has no interest in the matter. According, I grant leave further to amend the firstnamed defendant’s defence and counterclaim by adding thereto the paragraphs 6B(a) and 7B(a) contained in the document handed up by Mr Hammond and I direct that a suitably amended and marked up further amended defence and counterclaim be filed and served post haste.
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- AGLC
- IGA Distribution Pty Ltd v King and Taylor Pty Ltd [2002] VSC 406
- Case
- [2002] VSC 406
- Decision Date
CaseChat Overview and Summary
The court considered the request to imply a term in the lease agreement, noting that the first defendant sought to imply such a term to give business efficacy to the agreement, akin to the Moorcock principle. The plaintiff's counsel made it clear that they did not oppose the amendment on the condition that it would not introduce new facts. The court determined that granting the amendment would not prejudice the plaintiff, and the second defendant had no interest in the matter. Consequently, the court granted leave for the amendment, directing that the first defendant file and serve an amended defence and counterclaim promptly.
The court's ruling allowed the amendment, adding that the implied term would be one that arises as a matter of law from the need to give business efficacy to the agreement. This decision underscored the importance of the Moorcock principle in interpreting lease agreements and the flexibility of the court to allow amendments when they do not prejudice the opposing party. The final orders directed the first defendant to file and serve the amended defence and counterclaim post haste, ensuring that the proceedings could continue with the new allegation included.
Orders
Orders of the court
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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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