O'Sullivan v Great Wall Resources Pty Limited

The case of O'Sullivan v Great Wall Resources Pty Limited was brought before the Federal Court of Australia. The plaintiff, O'Sullivan, sought damages and specific performance of a contract against the defendant, Great Wall Resources Pty Limited. The dispute centred around the failure of Great Wall Resources to honour the terms of a contract for the sale of shares in a mining company. O'Sullivan claimed that Great Wall Resources had breached the contract by not completing the sale of shares as agreed.

The primary legal issues before the court were whether Great Wall Resources had indeed breached the contract and, if so, what remedy should be awarded to O'Sullivan. The court had to determine if specific performance of the contract was appropriate and, if not, what damages were due to O'Sullivan. The court also had to consider the nature and extent of any breach and its impact on O'Sullivan.

In its decision, the court found that Great Wall Resources had indeed breached the contract by failing to complete the sale of shares. The court held that specific performance was not a suitable remedy in this case due to the nature of the contract and the market conditions at the time of the breach. Instead, the court ordered an inquiry to determine the amount of damages owed to O'Sullivan. The court emphasised that damages should reflect the loss directly caused by the breach, including any lost profits that could have been reasonably anticipated from the sale of shares. The court concluded that an inquiry was necessary to ascertain the precise amount of damages, given the complexity of the evidence and the need for expert analysis.

The final orders of the court included a declaration that Great Wall Resources had breached the contract and that specific performance was not an appropriate remedy. The court ordered an inquiry to determine the amount of damages to be awarded to O'Sullivan, with costs to be borne by Great Wall Resources. The inquiry was to be conducted by an appointed expert, who would submit a report to the court for final determination of the damages.