IGA Distribution Pty Ltd v King and Taylor Pty Ltd

Case [2002] VSC 406


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
with Mr M.K. Moshinsky

Cornwall Stodart
For the First Defendant

Mr J.D. Hammond QC
with Ms J.E. Richards

Richard Szental
For the Second Defendant Mr P.J. Hayes with
Ms L. Hannon
Efron & Associates

HIS HONOUR:

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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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Details
AGLC
IGA Distribution Pty Ltd v King and Taylor Pty Ltd [2002] VSC 406
Case
[2002] VSC 406
Decision Date

CaseChat Overview and Summary

In the Supreme Court of Victoria, IGA Distribution Pty Ltd, the plaintiff, sought relief against King & Taylor Pty Ltd, the first defendant, and De Lahey Properties Pty Ltd, the second defendant. The central issue was whether the court should permit an amendment to the first defendant's defence and counterclaim to include an allegation that there was an implied term in the agreement for lease between the plaintiff and the first defendant. Specifically, the amendment sought to imply a term that the first defendant would furnish an estimate of total rent to King & Taylor. The plaintiff did not oppose the amendment, provided it was clear that the first defendant would not rely on facts beyond those already in evidence.

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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