Osborne v Boral Resources (NSW) Pty Ltd

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Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Osborne v Boral Resources (NSW) Pty Ltd [2012] NSWCA 155
Hearing dates:23 May 2012
Decision date: 23 May 2012
Before: Bathurst CJ at [1]; Allsop P at [13]; Macfarlan JA at [16]
Decision:

Appeal dismissed with costs.

[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 - principal and agent - authority of agent - whether sufficient evidence to find agent had authority to incur liability under contract
EVIDENCE - admissibility - hearsay - business records - email purportedly sent by company officer - whether proof of officer's authority to order goods on behalf of company
Legislation Cited: Corporations Act 2001 s 129(3)(b)
Cases Cited: Equiticorp Finance Ltd v Bank of New Zealand (1993) 32 NSWLR 50
Category:Principal judgment
Parties: Mark Gregory Osborne (Appellant)
Boral Resources (NSW) Pty Ltd (Respondent)
Representation: Mr Allen (Appellant)
Mr Locke (Respondent)
Solicitors:
Proctor & Associates (Appellant)
Oliveri Lawyers (Respondent)
File Number(s):2009/00335437
 Decision under appeal 
Date of Decision:
2011-05-11 00:00:00
Before:
Rolfe DCJ
File Number(s):
2009/00335437

Judgment

  1. BATHURST CJ: This is an appeal from a judgment of Rolfe DCJ of 11 May 2011, in which judgment was entered against the appellant in favour of the respondent in the amount of $263,619.59 plus costs. The appellant appeals from that decision on the ground that there was insufficient evidence to found the primary judge's findings. That ground is not made out, and the appeal should be dismissed with costs for the following reasons.

  1. The appellant, Mr Osborne, was the sole shareholder and director of Development and Investments Australia Group Pty Limited ("DIAG"), now in administration. In early 2009, DIAG entered into a credit agreement with the respondent, Boral Resources (NSW) Pty Ltd, via its agent entity, Boral Shared Services Pty Ltd. The appellant signed the application on behalf of DIAG as its sole director. He also executed a personal guarantee which was incorporated as part of the contractual arrangement between DIAG and the respondent.

  1. A large amount of concrete was ordered and delivered in multiple batches to an address in St Marys under the credit account. In each case it was invoiced to DIAG, and the invoices were sent to the PO Box address listed for DIAG in the credit application form. The primary judge was entitled to infer that from the invoices which showed that it was delivered to that address.

  1. On 5 June 2009, the respondent filed a statement of claim against DIAG and the appellant in the District Court claiming approximately $217,000 for concrete supplied and invoiced, as well as the costs of recovery which were also the subject…

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Details
Case
[2012] NSWCA 155
Decision Date

CaseChat Overview and Summary

Osborne v Boral Resources (NSW) Pty Ltd concerned an appeal to the Court of Appeal of New South Wales regarding the authority of an agent to incur liability under a contract. The appellant, Osborne, sought to establish that an agent had the authority to bind Boral Resources (NSW) Pty Ltd to a contract for the supply of goods.

The central legal issues before the Court of Appeal were whether there was sufficient evidence to establish that the agent possessed the actual or apparent authority to enter into the contract on behalf of Boral Resources, and whether an email purportedly sent by a company officer, which was relied upon as evidence of the agent's authority, was admissible as a business record and proof of the officer's authority to order goods.

The Court of Appeal considered the principles of agency, particularly the distinction between actual and apparent authority. It examined the evidence presented to determine if Boral Resources had, through its conduct or representations, clothed the agent with the appearance of authority to bind the company. The Court also addressed the admissibility of the email, applying the rules of evidence concerning hearsay and business records, and assessing whether it constituted proof of the sender's authority to act for the company in the manner alleged.

The appeal was dismissed, with the Court ordering that Osborne pay the costs of Boral Resources.

Orders

Orders of the court

Appeal dismissed with costs.

[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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