District Court
New South Wales
Medium Neutral Citation: Sentiel Pty Ltd v THC Global Group Limited [2022] NSWDC 393 Hearing dates: 24 and 25 August 2022; 2 September 2022 Date of orders: 2 September 2022 Decision date: 02 September 2022 Jurisdiction: Civil Before: Weber SC DCJ Decision: (1) That there be judgment and verdict for the plaintiff against the defendant in the sum of $13,200.
(2) Interest thereon at the rates pertaining thereon from time to time pursuant to s 100 of the Civil Procedure Act 2005 (NSW).
Catchwords: CONTRACTS — Breach of contract — Consequences of breach
CONTRACTS — Construction
CONTRACTS — Terms — Exclusion clauses — Contra proferentem rule
Legislation Cited: Civil Procedure Act 2005 (NSW)
Cases Cited: Butt v McDonald (1896) 7 QLJ 68
Marshall v Colonial Bank of Australasia Ltd [1904] HCA 31; (1904) 1 CLR 632
O'Keefe v Williams [1907] HCA 64; (1907) 5 CLR 217
Australian Broadcasting Corporation v Australasian Performing Rights Association [1973] HCA 36; (1973) 129 CLR 99
Texts Cited: The Interpretation of Contracts in Australia (Law Book Co, 1st Edition, 2012)
Heydon on Contract, 1st Edition
Category: Principal judgment Parties: Plaintiff: Sentiel Pty Ltd
Defendant: THC Global Group LimitedRepresentation: Counsel:
Solicitors:
Plaintiff: Mr D Nagle
Defendant: Ms P Thew
Plaintiff: CLH Lawyers
Defendant: Piper Alderman
File Number(s): 2021/41074 Publication restriction: None
Judgment
Introduction
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Pursuant to a contract dated 1 November 2019 the defendant engaged the plaintiff to provide consultancy services (“the Contract”). The plaintiff says that the defendant terminated the Contract, and that it is contractually entitled to the payment of a sum being the equivalent of six months fees which would otherwise be payable pursuant to the Contract (“the Notice Issue”).
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The plaintiff also seeks to recover a sum which he says is payable pursuant to the contract, on account of the fact that he had achieved certain key performance indicators in relation to its consultancy (“the KPI issue”).
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I have used the male pronoun to describe the plaintiff in the previous sentence though this is not strictly correct. The correct description is that the plaintiff is a company who provided the services of Mr Andrew Beehag to the defendant enable it to provide the requisite services to the defendant, in fulfilment of the plaintiff's obligations pursuant to the Contract.
The Contract
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The Contract in its Clause 1 contains definitions which were part of the operative clauses to the agreement. The following definitions are relevant to the proceedings.
Commencement Date means 1st November 2019
Engagement means the engagement of the Consultant under this agreement
Termination Date means 31st October 2020, unless terminated earlier pursuant to clauses 20 or 21
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Clauses 3, 4, 11 and 20 are in the following terms:
3. Engagement
The Company engages the Consultant to perform the Services on the terms of this agreement.
4. Engagement Term
4.1 The Company engages the…
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- Case
- [2022] NSWDC 393
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court involved the interpretation of the contract terms, particularly the exclusion clauses, and determining whether the defendant had breached the contract. The court had to assess the application of the contra proferentem rule in interpreting the ambiguous exclusion clauses. The plaintiff argued that the exclusion clauses did not absolve the defendant from liability for the claimed breach, while the defendant contended that the clauses limited or excluded their liability.
The court held that the exclusion clauses were ambiguous and, applying the contra proferentem rule, interpreted the clauses against the party that drafted them, the defendant. Consequently, the exclusion clauses did not absolve the defendant from liability for the breach. The court found that the defendant had indeed breached the contract and awarded damages to the plaintiff in the sum of $13,200. The court also ordered interest on the damages from the date of judgment until satisfaction, in accordance with the Civil Procedure Act 2005 (NSW).
Orders
Orders of the court
(1) That there be judgment and verdict for the plaintiff against the defendant in the sum of $13,200.
(2) Interest thereon at the rates pertaining thereon from time to time pursuant to s 100 of the Civil Procedure Act 2005 (NSW).
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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