Integrated Asset Management Pty Ltd v Trans Communications Pty Ltd - [2015] NSWSC 984

Supreme Court

New South Wales

Medium Neutral Citation: Integrated Asset Management Pty Ltd v Trans Communications Pty Ltd [2015] NSWSC 984
Hearing dates: 27 March 2015
Date of orders: 23 July 2015
Decision date: 23 July 2015
Jurisdiction: Common Law
Before: Schmidt J
Decision:
The appeal must be allowed and her Honour’s judgment and orders set aside. The usual order as to costs is that they follow the event. The orders sought in the notice of appeal depart from that order.
The parties are directed to confer as to costs and to file proposed short minutes of order. I will hear them on the question of costs, if there remains any disagreement.
Catchwords: APPEAL – appeal against Local Court decision – contracts and agency – rental of telecommunications equipment – recovery of money owed under agreement – doctrine of undisclosed principal – appeal allowed – judgment and orders set aside
Legislation Cited: Civil Procedure Act 2005 (NSW)
Local Courts Act 2007 (NSW)
Uniform Civil Procedure Rules 2005 (NSW)
Cases Cited: Australian Broadcasting Tribunal v Bond [1990] HCA 33; (1990) 170 CLR 321
Bank of Western Australia v Salmon [No 1] [2009] NSWSC 224
Berzins v QBE Insurance (Australia) Ltd [2014] NSWCA 196
Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd [1986] HCA 14; (1986) 160 CLR 226
Coulton v Holcombe [1986] HCA 33; (1986) 162 CLR 1
Davison v Vickery’s Motors Ltd (in liq) [1925] HCA 47; (1925) 37 CLR 1
Drabsch v Switzerland General Insurance Co Ltd (Supreme Court (NSW), Santow J, 16 October 1996, unrep)
Hannover Life Re of Australasia Ltd v Dargan [2012] NSWCA 185
Humble v Hunter (1848) 12 QB 310
Keighley, Maxsted & Co v Durant [1902] AC 240
Multicar Engineering Pty Ltd v Federal Airports Corp (1997) 47 NSWLR 631
Newey v Westpac Banking Corporation [2014] NSWCA 319
NRMA Insurance Ltd v B & B Shipping and Marine Salvage Co Pty Ltd (1947) 47 SR (NSW) 273
Quikfund (Australia) Pty Ltd v Prosperity Group International Pty Limited (in liq) [2013] FCAFC 5; (2013) 209 FCR 368
Siu Yin Kwan v Eastern Insurance Co Ltd [1994] 2 AC 199
Teheran-Europe Co Ltd v S T Belton (Tractors) Ltd [1968] 2 QB 545
Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389; (2011) 15 BPR 29,699
Waller and Son Ltd v Thomas [1921] 1 KB 541
Water Board v Moustakas [1988] HCA 12; (1988) 180 CLR 491
Whisprun Pty Ltd v Dixon [2003] HCA 48; (2003) 77 ALJR 1598
White v Baycorp Advantage Business Information Services Ltd [2006] NSWSC 441; (2006) 200 FLR 125
Texts Cited: G E Dal Pont, Law of Agency, (2nd ed 2008, LexisNexis Butterworths)
Category: Principal judgment
Parties: Integrated Asset Management Pty Ltd
ACN 087 604 948 (Plaintiff)
Trans Communication Pty Ltd
ACN 099 104 462 (First Defendant)
John Peter Van Rooyen (Second Defendant)
Representation:
Counsel:
Mr P Aquilina (Plaintiff)
Mr S Fisher (Defendant)
Solicitors:
SR…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2015] NSWSC 984
Decision Date: 23 July 2015

CaseChat Overview and Summary

Integrated Asset Management Pty Ltd, the appellant, sought to recover monies owed by Trans Communications Pty Ltd, the respondent, under an agreement for the rental of telecommunications equipment. The Local Court dismissed the claim, finding that the agreement was unenforceable due to the lack of authority of the respondent's agent, who had entered into the agreement on behalf of Trans Communications Pty Ltd. The appellant appealed to the Supreme Court, challenging the Local Court's decision.

The primary legal issue in the appeal was whether the doctrine of undisclosed principal applied, thereby rendering the agreement unenforceable due to the agent's lack of authority. The appellant argued that the respondent's agent had actual authority to enter into the agreement, and therefore, the agreement was valid and enforceable. The respondent contended that the agent lacked authority and that the agreement was void due to the undisclosed principal doctrine.

The Supreme Court found that the doctrine of undisclosed principal applied in this case. The court held that the appellant had not discharged the onus of proving that the agent had actual authority to enter into the agreement on behalf of the respondent. The court found that the evidence did not support the appellant's claim that the agent had actual authority, and therefore, the agreement was unenforceable. Consequently, the appeal was dismissed, and the judgment and orders of the Local Court were upheld.

As a result of the Supreme Court's decision, the appeal was dismissed, and the judgment and orders of the Local Court were set aside. The appellant was not entitled to recover the monies owed under the agreement for the rental of telecommunications equipment.

Orders