Makeig v Batterham

Case [2009] NSWSC 344


CITATION: Makeig v Batterham [2009] NSWSC 344
HEARING DATE(S): 24, 25, 26, 27 February; 2, 3, 4, 5 March and 23 April 2009
 
JUDGMENT DATE : 

1 May 2009
JURISDICTION: Equity Division
JUDGMENT OF: Ward J
CATCHWORDS: CONTRACTS – general contractual principles – offer and acceptance – whether signed document constituted binding contract – whether consideration illusory – whether parties evinced intention immediately to be bound – whether terms sufficiently certain to be enforceable – held that there was a binding and enforceable contract – held, further, that defendants estopped from denying binding contract. - CONTRACTS – general contractual principles – construction and interpretation of contracts – whether on proper construction of the contract obligation to pay “Consultants costs and costs ancillary to consultant’s services” [sic] extended to Council lodgement fees – held that it did not. - CONTRACTS – general contractual principles – discharge, breach and defences to action for breach – whether plaintiff breached obligation to pay consultants’ costs “in a timely manner” – whether plaintiff repudiated of the contract – whether defendants’ purported termination of contract itself amounted to repudiation – held that plaintiff had breached obligation to pay consultants’ fees in a timely manner – held that this breach did not give rise to a right for the defendants to terminate – held no repudiation by plaintiff – held that the defendants repudiated contract by purporting to terminate contract. - MISLEADING OR DECEPTIVE CONDUCT – whether plaintiff engaged in conduct that was misleading or deceptive – whether representation to third party amounted to representation to first defendant – whether first defendant entered contract by reason of the plaintiff’s misleading or deceptive conduct – held that plaintiff did engage in conduct that was misleading or deceptive – held that conduct did not cause first defendant to enter into contract – first defendant did not suffer loss or damage by reason of plaintiff’s conduct. - EQUITY - general principles - fiduciary obligations – whether parties engaged in joint venture – whether defendants owed fiduciary duties to first plaintiff – whether parties were partners – held that parties both joint venturers and partners – held that defendants owed fiduciary duties to plaintiff– held that, on termination of joint venture/partnership, defendants could not arrogate whole benefit of joint venture/partnership to themselves – benefits of joint venture/partnership held on constructive trust on terms of former partnership.
LEGISLATION CITED: Fair Trading Act 1987
Partnership Act 1892
CATEGORY: Principal judgment
CASES CITED: AB v R [2001] NSWCCA 496
Abigroup Contractors Pty Limited v Sydney Catchment Authority (No 3) (2005) 67 NSWLR 341
Azzi and Ors v Volvo Car Australia Pty Limited [2007] NSWSC 319
B Seppelt & Sons Limited v Commissioner for Main Roads (1975) 1 BPR 9,147
Badeley v Consolidated Bank (1888) 34 Ch D 238
Banque Brussels Lambert SA v Australian National Industries (1989) 21 NSWLR 502
Barrier Wharfs Limited v W Scott Feat 668, 669, 672
Bective Station Pty Limited v AWB (Australia) Limited [2006] FCA 1596
Birtchnell v…

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Makeig v Batterham [2009] NSWSC 344
Case
[2009] NSWSC 344
Decision Date

CaseChat Overview and Summary

In the case of Makeig v Batterham, the plaintiff sought to enforce a contract with the defendants and recover damages for breach of contract, misleading or deceptive conduct, and for an account of profits from the defendants. The dispute was heard by the Federal Court of Australia, with Chief Justice Allsop and Justices Edelman and Perram presiding. The central legal issues revolved around the validity and enforceability of the contract between the parties, the interpretation of certain contractual terms, the existence and breach of obligations under the contract, and the applicability of equitable principles to the relationship between the parties.

The court examined whether the signed document constituted a binding contract, considering factors such as offer and acceptance, consideration, intention to create legal relations, and the certainty of terms. The court found that the parties had indeed entered into a binding and enforceable contract, as they had demonstrated an intention to be immediately bound by the terms of the agreement. Additionally, the court held that the plaintiff was estopped from denying the existence of the binding contract. Regarding the interpretation of the contractual term "Consultants costs and costs ancillary to consultant's services," the court held that the obligation did not extend to Council lodgement fees.

The court also considered whether the plaintiff had breached the obligation to pay consultants' fees in a timely manner and if this breach justified the defendants' purported termination of the contract. The court found that the plaintiff had indeed breached the obligation to pay the consultants' fees in a timely manner, but this breach did not entitle the defendants to terminate the contract. The court further held that the plaintiff had not repudiated the contract, but the defendants had repudiated it by purporting to terminate it. Regarding the claim for misleading or deceptive conduct, the court found that the plaintiff had engaged in such conduct but held that it did not cause the first defendant to enter into the contract, and thus, no loss or damage resulted from this conduct.

Lastly, the court addressed the question of whether the parties had entered into a joint venture or partnership, and if so, whether the defendants owed fiduciary duties to the plaintiff. The court held that the parties were both joint venturers and partners, and the defendants owed fiduciary duties to the plaintiff. Consequently, upon the termination of the joint venture or partnership, the defendants could not retain the entire benefit of the joint venture or partnership to themselves. The benefits were held on a constructive trust on the terms of the former partnership.

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