Court of Appeal
Supreme Court
New South Wales
- Amendment notes
Medium Neutral Citation: Rowe v Metroll SA Pty Ltd [2021] NSWCA 196 Hearing dates: 18 August 2021 Decision date: 06 September 2021 Before: Bell P at [1];
Leeming JA at [2];
Emmett AJA at [65].Decision: 1. Rename the second respondent “ACN 149 887 061 Pty Ltd (in liq)”.
2. Appeal dismissed with costs.
Catchwords: AGENCY – ostensible authority – man used company email address and corporate signature – man closely involved with company’s sole director in finalising orders of building materials – whether man had ostensible authority to bind company
CONTRACT – company purchased building materials from South Australian company – sole director guaranteed company’s obligations to supplier – guarantee expressed to be with Queensland company and “each related body corporate that supplies goods or services to the Customer” – South Australian supplier was related to Queensland company and had similar name – whether South Australian company could enforce guarantee
Legislation Cited: Corporations Act 2001 (Cth), ss 50, 471B
Personal Property Securities Act 2009 (Cth)
Cases Cited: Ankar Pty Ltd v National Westminster Finance (Aust) Ltd (1987) 162 CLR 549; [1987] HCA 15
Belgravia Nominees Pty Ltd v Lowe Pty Ltd [2015] WASCA 143
Boyd v Thorn (2017) 96 NSWLR 390; [2016] NSWCA 210
CGU Insurance Ltd v Blakeley (2016) 259 CLR 339; [2016] HCA 2
Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480
McIntosh v Shashouna (1931) 46 CLR 494; [1931] HCA 56
Metroll SA Pty Ltd v Powerpark Systems Pty Ltd [2021] NSWDC 102
Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35
Texts Cited: J Carter, The Construction of Commercial Contracts (Hart Publishing, 2013)
Category: Principal judgment Parties: Jeremy Richard Rowe (Appellant)
Metroll SA Pty Ltd (First respondent)
ACN 149 887 061 Pty Ltd (formerly known as Powerpark Systems Pty Ltd) (in liq) (Second respondent)Representation: Counsel:
Solicitors:
R Marshall SC, J Byrne (Appellant)
H Woods (First respondent)
Keypoint Law (Appellant)
Kanji & Co Solicitors (First respondent)
File Number(s): 2021/00133458 Publication restriction: Nil Decision under appeal
- Court or tribunal:
- District Court of New South Wales
- Jurisdiction:
- Civil
- Citation:
- Date of Decision:
- 31 March 2021
- Before:
- Dicker SC DCJ
- File Number(s):
- 2019/00133756
Judgment
-
BELL P: I agree with Leeming JA.
-
LEEMING JA: Mr Jeremy Richard Rowe, the sole director and secretary of Powerpark Systems Pty Ltd, appeals from a judgment of the District Court in the amount of $121,300.56 in favour of Metroll SA Pty Ltd. Metroll SA supplied building materials (purlins and the nuts and bolts and joining plates for them) to Powerpark Systems for which it was not paid. Metroll SA sued Powerpark Systems for the unpaid purchase price, and Mr Rowe on his guarantee of Powerpark Systems’ obligations. In late 2020 a liquidator was appointed to Powerpark Systems, which now seems to be named “ACN 149 887 061 Pty Ltd (in liq)”, and at trial…
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- Case
- [2021] NSWCA 196
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the Court were: first, whether an individual, who used a company email address and corporate signature and was closely involved with the company's sole director in finalising orders, possessed ostensible authority to bind the company to the contract; and second, whether the guarantee, which referred to a Queensland company and "each related body corporate that supplies goods or services to the Customer," could be enforced by the South Australian supplier, given its relationship to the Queensland company and similar name.
The Court reasoned that for ostensible authority to arise, the company must have represented that the individual had authority to act on its behalf, and the other party must have relied on that representation. The Court found that the use of the company email and signature, coupled with the individual's active involvement in the ordering process, constituted sufficient representation of authority. Regarding the guarantee, the Court determined that the South Australian supplier fell within the description of a "related body corporate that supplies goods or services to the Customer" as contemplated by the guarantee, thereby enabling it to enforce the guarantee.
The Court of Appeal dismissed the appeal with costs, ordering that the second respondent be renamed "ACN 149 887 061 Pty Ltd (in liq)".
Orders
Orders of the court
1. Rename the second respondent “ACN 149 887 061 Pty Ltd (in liq)”.
2. Appeal dismissed with costs.
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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