Ipex ITG Pty Ltd (in liq) v State of Victoria

The case of Ipex ITG Pty Ltd (in liq) v State of Victoria involved the liquidators of Ipex ITG Pty Ltd suing the State of Victoria over issues relating to a tender process. Ipex had submitted a tender in response to a government invitation to tender for the provision of certain services. The liquidators alleged that the State had breached the tender process by failing to act in good faith and fairly, and by not complying with the terms of the tender process. The matter was heard in the Supreme Court of Victoria.

The central legal issues before the court were whether the invitation to tender constituted an agreement for a tender process and whether the State had breached any obligations to act in good faith, fairly, and reasonably in accordance with the tender terms. Specifically, the court needed to determine whether the tender process was governed by contractual principles and whether the State was bound by any implied duty of good faith.

The court found that the invitation to tender did not constitute a binding agreement for a tender process but rather was a mere invitation to treat. However, the court did find that an implied obligation of good faith existed in the tender process. The court held that the State had breached this obligation by failing to act fairly and reasonably and in accordance with the terms of the tender. The court found that the State's conduct had caused detriment to Ipex, and this was sufficient to establish a breach of the implied duty of good faith.

The court ordered the State to pay damages to Ipex for the loss suffered as a result of the breach of the implied duty of good faith. The court also noted that the amount of damages would be assessed in a subsequent hearing. The decision underscores the importance of acting in good faith and fairly in the tender process, even in the absence of a binding contractual agreement.