KPMG (a firm) v The Commonwealth of Australia & Anor

The High Court of Australia heard an appeal concerning a dispute between KPMG (a firm) and the Commonwealth of Australia and another party. The core of the dispute involved the interpretation of certain provisions within a contract, specifically relating to the circumstances under which KPMG was entitled to recover certain costs incurred in providing services to the Commonwealth.

The central legal issue before the High Court was whether KPMG had established a breach of contract by the Commonwealth, and consequently, whether KPMG was entitled to recover the disputed costs. This required the Court to consider the proper construction of the contractual terms governing the parties' obligations and entitlements, particularly in relation to the identification and recovery of specific expenses.

Hayne J, delivering the judgment, focused on the plain meaning of the contractual language and the established principles of contractual interpretation. His Honour determined that the terms of the contract did not support KPMG's claim for the recovery of the costs in question. The Court found that the conditions precedent to such recovery, as stipulated in the agreement, had not been met by KPMG. Therefore, the appeal was dismissed.