Sasson & Partners Pty Ltd v Fahevu

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CITATION: Sasson v Fahevu [1999] NSWCA 400
FILE NUMBER(S): CA 40201/97
HEARING DATE(S): 15/03/99
JUDGMENT DATE:
28 October 1999

PARTIES :


David Sasson & Partners Pty Limited
Fahevu Pty Limited
JUDGMENT OF: Sheller JA at 1; Beazley JA at 2; Fitzgerald JA at 46
LOWER COURT JURISDICTION: District Court
LOWER COURT FILE NUMBER(S) : 5751/95
LOWER COURT JUDICIAL OFFICER: Kirkham DCJ
COUNSEL: Appellant: B A J Coles QC/ P Clay
Respondent: P W Neil QC
SOLICITORS: Appellant: P J Kerr & Co
Respondent: Beilby Poulden Costello
CATCHWORDS: Contract; Termination of joint business; Deed governing termination; Compliance with Deed; Entitlement under Deed; Claim of fees; Damages
ACTS CITED: Suitor's Fund Act 1951 (NSW)
CASES CITED:
Administration of the Territory of Papua New Guinea v Daera Guba (1973) 130 CLR 353
Sportsvision Australia Pty Limited v Tallglen Pty Limited (1998) 44 NSWLR 103
Spunwill Pty Limited v Bab Pty Limited (1994) 36 NSWLR 290
Pitcher v Langford (1991) 23 NSWLR 142
Grey v Australian Motorists & General Insurance Co Pty Limited [1976] 1 NSWLR 669
Jones v Sutherland Shire Council [1979] 2 NSWLR 206
Johnson v Perez (1988) 166 CLR 351
Johnson v Agnew [1980] 1 AC 367
DECISION: Appeal Allowed

      THE SUPREME COURT

      OF NEW SOUTH WALES

      COURT OF APPEAL
      CA 40201/97
      DC 5751/95
SHELLER JA
BEAZLEY JA
FITZGERALD JA


      Thursday, 28 October 1999

      DAVID SASSON & PARTNERS PTY LIMITED v FAHEVU PTY LIMITED


      FACTS

      In 1990 the appellant (DSP) a merchant bank, and the first respondent (Fahevu) entered into a joint business arrangement which involved bringing together buyers and sellers of businesses.

      On 30 June 1992, having decided to terminate the joint business, DSP and, Fahevu (and the principals of each, Sasson and Tarrant) entered into a Deed, which governed DSP’s entitlement to fees earned in respect of contracts in place as at the date of termination and which were continued by Fahevu after termination. One such contract was with Rowe Corporation. Rowe Corporation was subsequently sold to Jeffries Industries and the appellant claimed to be entitled to fees earned by Fahevu on the sale.

      HELD

      (i) Pursuant to cl 3 and Sch 1 of the Deed, DSP was entitled to fees earned by Fahevu on the sale of Rowe Corporation to Jeffries Industries, calculated in accordance with the Deed.

      (ii) The respondents conceded there had been compliance with cl 1 of the Deed which required the respondents to terminate existing contracts ”forthwith” . The respondents could not rely upon non-compliance with cl 2, which required the respondents to enter into new contracts in place of existing contracts “immediately after termination of [such] contracts” , as that was an obligation imposed on the respondents and they could not rely upon their own breach or non-performance to resist the appellant’s claim for fees.

      ORDERS

      (i) Appeal allowed.

      (ii) Verdict and judgment of the court below set aside.

      (iii) Verdict and judgment for the appellant in the amount of $24,750.00.

      (iv) The respondents to pay the appellant’s costs of the appeal and…
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Details
Case
[1999] NSWCA 400
Decision Date

CaseChat Overview and Summary

Sasson & Partners Pty Ltd (the appellant) and Fahevu (the respondent) were parties to a joint business venture. The dispute arose from the termination of this venture and the appellant's subsequent claim for fees allegedly owed under a deed that governed the termination. The matter was heard on appeal in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the appellant had complied with the terms of the termination deed and, consequently, whether it was entitled to claim the fees it sought. The court was required to interpret the provisions of the deed to determine the rights and obligations of the parties upon termination of their joint business.

The Court of Appeal found that the appellant had not complied with a crucial condition precedent stipulated in the deed, which was a prerequisite for its entitlement to the claimed fees. The deed required the appellant to provide certain information and documentation to the respondent before any fees could be claimed. As this condition was not met, the appellant's claim failed. The court applied principles of contract interpretation, emphasizing the importance of adhering to express contractual terms, particularly conditions precedent, for the enforcement of rights.

The appeal was allowed, and the orders of the primary judge were set aside.

Orders

Orders of the court

Appeal Allowed

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Evidence Before The Court

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Decision

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