Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Newey v Westpac Banking Corporation [2014] NSWCA 319 Hearing dates: 21 May 2014 Decision date: 11 September 2014 Before: Basten JA at [1];
Meagher JA at [23];
Gleeson JA at [33]Decision: (1) To the extent necessary, grant leave to appeal and grant leave to cross-appeal.
(2) Appeal allowed.
(3) Cross-appeal dismissed.
(4) Set aside the declarations and orders made by the primary judge on 5 July 2013.
(5) In lieu thereof, order that the proceedings be dismissed and the plaintiff pay the defendants' costs.
(6) Respondent to pay the appellants' costs in this Court.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
Catchwords: CONTRACT - Interpretation - Restraint Clause - Identification of ambiguity not a precondition to examining legitimate surrounding circumstances - Scope of surrounding circumstances to be understood by reference to what the parties knew in the context of their mutual dealings - Whether surrounding circumstances revealed absurdity or inconsistency in a literal construction of the deed
EQUITY - Remedies and Procedure - Mistake - Rectification - Mistake as to effect - Whether there is clear and convincing proof of a common intention between the parties - Requirement that the common intention be consensual and expressly manifested by words or conductLegislation Cited: Corporations Act 2001 (Cth) ss 50, 413(1)(d)
Financial Sector (Business Transfer and Group Restructure) Act 1999 (Cth), ss 18, 22(1)(c)
Supreme Court Act 1970 (NSW) s 101(2)(r)
Uniform Civil Procedure Rules 2005 (NSW) r 51.22Cases Cited: Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99
Australasian Performing Right Association Ltd v Austarama Television Pty Ltd [1972] 2 NSWLR 467
BHP Petroleum (Australia) Pty Ltd v Sagasco South East Inc [2001] WASCA 159
Biogen Inc v Medeva plc [1996] UKHL 18; [1997] RPC 1
Bishopgate Insurance Australia Ltd v Commonwealth Engineering (NSW) [1981] 1 NSWLR 429
Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38; [2009] 1 AC 1101; [2009] 4 All ER 677
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; 149 CLR 337
Commissioner of Stamp Duties (NSW) v Carlenka Pty Ltd (1995) 41 NSWLR 329
Commonwealth Financial Planning Ltd v Couper [2013] NSWCA 444
Davis v Veigel [2011] NSWCA 170
Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7
Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55; 218 CLR 471
Fitzgerald v Masters [1956] HCA 53; 95 CLR 420
Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; 76 NSWLR 603
Fox v Percy [2003] HCA 22;
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- Case
- [2014] NSWCA 319
- Decision Date
CaseChat Overview and Summary
The Court was required to determine whether a literal construction of the restraint clause led to an absurdity or inconsistency, thereby justifying an examination of surrounding circumstances to ascertain the parties' true intentions. Furthermore, the Court had to consider whether there was clear and convincing proof of a common intention between the parties, which was consensually and expressly manifested by their words or conduct, to warrant rectification of the deed.
The Court held that the identification of ambiguity in a contractual provision is not a prerequisite to examining legitimate surrounding circumstances. The scope of such circumstances should be understood by reference to what the parties knew in the context of their mutual dealings. Applying this principle, the Court found that the surrounding circumstances did reveal an absurdity or inconsistency in a literal construction of the deed. Consequently, the appeal was allowed, the cross-appeal was dismissed, and the declarations and orders made by the primary judge were set aside. The proceedings were dismissed, with the plaintiff ordered to pay the defendants' costs at first instance and the respondent ordered to pay the appellants' costs in the Court of Appeal.
Orders
Orders of the court
(1) To the extent necessary, grant leave to appeal and grant leave to cross-appeal.
(2) Appeal allowed.
(3) Cross-appeal dismissed.
(4) Set aside the declarations and orders made by the primary judge on 5 July 2013.
(5) In lieu thereof, order that the proceedings be dismissed and the plaintiff pay the defendants' costs.
(6) Respondent to pay the appellants' costs in this Court.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
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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