R J King v Stelmag Pty Ltd

R J KING & ANOR v STELMAG PTY LTD [2006]
ACTCA 14 (10 August 2006)

CONTRACT – construction of contract – whether there had been a repudiation of an obligation to pay royalties pursuant to a contract – whether trial judge erred in finding that a shareholder of a company was personally liable for the company’s failure to pay royalties pursuant to a contract – appeal allowed.

ON APPEAL FROM A JUDGE OF THE SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

No. ACTCA 20-2005
No. SC 25 of 1997

Judges:         Crispin P, Gray and Lander JJ
Court of Appeal of the Australian Capital Territory
Date:            10 August 2006

IN THE SUPREME COURT OF THE       )          No. ACTCA 20-2005
  )          No. SC 25 of 1997
AUSTRALIAN CAPITAL TERRITORY    )
  )

COURT OF APPEAL  )

ON APPEAL FROM A JUDGE OF THE SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

BETWEEN:ROBERT JOHN KING

First Appellant

AND:LONG PADDOCK PTY LTD

Second Appellant

AND:STELMAG PTY LTD

Respondent

ORDER

Judges:  Crispin P, Gray and Lander JJ
Date:  10 August 2006
Place:  Canberra

THE COURT ORDERS THAT:

1. The appeal be allowed.

1. The judgment entered in favour of Stelmag Pty Ltd against Robert John King in the sum of $223,838.51 as varied by order made on 1 April 2005 be set aside.

1. The matter be remitted for trial on the issues raised between Stelmag Pty Ltd and Robert John King.

1. The parties be heard on the order for costs made at trial in favour of Stelmag Pty Ltd against Robert John King.

1. The parties be heard on the costs of the appeal.

IN THE SUPREME COURT OF THE       )          No. ACTCA 20-2005
  )          No. SC 25 of 1997
AUSTRALIAN CAPITAL TERRITORY    )
  )

COURT OF APPEAL  )

ON APPEAL FROM A JUDGE OF THE SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

BETWEEN:ROBERT JOHN KING

First Appellant

AND:LONG PADDOCK PTY LTD

Second Appellant

AND:STELMAG PTY LTD

Respondent

Judges:  Crispin P, Gray and Lander JJ
Date:  10 August 2006
Place:  Canberra

REASONS FOR JUDGMENT

THE COURT:

1. The first and second appellants appeal from two orders made by the trial judge whereby on 1 April 2005:

‘Subject to submissions as to the accuracy of calculations, judgment will be entered in favour of the plaintiff [Stelmag Pty Ltd] against the first and second defendants [Long Paddock Pty Ltd and Mr King] in the sum of $223,838.51 plus interest’;

and on 19 July 2005 he ordered:

‘A sum of $295,000.00 be added to the judgment sum as at, and from, 1 April 2005.’

1. In the proceedings before the trial judge, the respondent, Stelmag Pty Ltd, was plaintiff, and the first and second appellants were defendants together with Susan Rosalie King.  The proceedings were abandoned against Mrs King and judgment entered in her favour.  There is no appeal against that order.

1. For consistency sake, we will refer to the first appellant as ‘Mr King’, the second appellant Long Paddock Pty Ltd as ‘Tifferly’ and the respondent as ‘Stelmag’.…