SUPREME COURT OF QUEENSLAND
CITATION:
Surfstone Pty Ltd & Anor v Morgan Consulting Engineers Pty Ltd [2015] QSC 290
PARTIES:
SURFSTONE PTY LTD AS TRUSTEE OF THE IERNA PROPERTY TRUST ACN 097 808 225
(first plaintiff)
CORKDON PTY TLD AS TRUSTEE OF THE HICKS PROPERTY TRUST ACN 097 808 190
(second plaintiff)v
MORGAN CONSULTING ENGINEERS PTY LTD ACN 009 859 081
(defendant)
FILE NO/S:
No 11423 of 2014
DIVISION:
Trial
PROCEEDING:
Trial
DELIVERED ON:
19 October 2015
DELIVERED AT:
Brisbane
HEARING DATE:
12 May 2015
JUDGE:
Peter Lyons J
ORDER:
Each of the following questions is answered in the affirmative:
1. Were the ACEA Guideline Terms of Agreement incorporated, in full, into the contract between the plaintiffs and the defendant?
2. If so, does clause 4.3 of the ACEA Guideline Terms of Agreement, on its proper construction, operate as a bar to the plaintiffs bringing this proceeding against the defendant?
CATCHWORDS:
CONTRACTS – GENERAL CONTRACTUAL PRINCIPLES – FORMATION OF CONTRACTUAL RELATIONS – OFFER – GENERALLY – INCORPORATION – where the defendant engineers submitted a Fee Proposal on 27 August 2003 – where the Fee Proposal stated that the ‘commission would be generally in accordance with the ACEA Guideline Terms of Agreement’ – where the defendant submitted the first of a series of invoices relating to the commission on 17 December 2003 – where the defendant did not provide the plaintiffs with a copy of the Guideline Terms and no one associated with the plaintiffs sought to obtain one – where clause 4.3 of the Guideline Terms limited the duration of the defendant’s liability for the commission to one year from completion – where the plaintiffs filed a Claim in negligence more than nine years after the defendant submitted the final invoice – where the plaintiff alleges that clause 4.3 of the Guideline Terms was not incorporated into the contract – whether a reasonable person in the plaintiffs’ position would have concluded that, at the time that the Fee Proposal was accepted, the defendant intended to enter into a contract to provide the relevant engineering services on the terms identified in the Fee Proposal, including the Guideline Terms – whether, for an exemption clause to be incorporated into an unsigned contract, a party must do all that is reasonably necessary to bring the clause to the other party’s attention – whether a party must be given notice of, or have their attention drawn to, terms which alter their common law rights –– whether clause 4.3 was a term which no one would anticipate in a contract of the type in question
Balmain New Ferry Co Ltd v Robertson (1906) 4 CLR 379; [1906] HCA 83, cited.
Baltic Shipping Co v Dillon (1991) 22 NSWLR 1; [1991] NSWCA 19, cited.
Circle Freight International Ltd v Medeast Gulf Exports Ltd [1988] 2 Lloyd’s Rep 427, cited.
Cockerton v Naviera Aznar SA [1960] 2 Lloyd’s Rep 450, cited.
D F McCloy Pty Ltd v Taylor Thomsom Whitting Pty Ltd
Keep reading for free
Create a free CaseChat account to read Surfstone Pty Ltd v Morgan Consulting Engineers Pty Ltd and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [2015] QSC 290
- Decision Date
CaseChat Overview and Summary
The legal issues before the court were whether the ACEA Guideline Terms of Agreement were incorporated, in full, into the contract between the plaintiffs and the defendant, and if so, whether clause 4.3 of the Guideline Terms operated as a bar to the plaintiffs bringing the proceeding against the defendant. The court considered the arguments presented by both parties, including the plaintiffs' contention that the language used in the Fee Proposal was insufficiently clear to incorporate the Guideline Terms into the contract. The court also examined the principle that where a term is more than ordinarily onerous, special notice of it might be required.
In its reasoning, the court found that the Fee Proposal did not specify a date and that the submissions for the plaintiffs pointed out that no one signed the Guideline Terms on their behalf, nor were they provided with a copy. The court rejected the plaintiffs' argument that the language used in the Fee Proposal was insufficiently clear to incorporate the Guideline Terms into the contract. The court found that the Guideline Terms were incorporated into the contract, and as a result, clause 4.3 operated as a bar to the plaintiffs bringing this proceeding against the defendant.
The court answered both questions for determination in the affirmative, stating that the ACEA Guideline Terms of Agreement were incorporated, in full, into the contract between the plaintiffs and the defendant, and that clause 4.3 of the Guideline Terms, on its proper construction, operated as a bar to the plaintiffs bringing this proceeding against the defendant. The court concluded that the defendant had met its burden of proving that the Guideline Terms were incorporated into the contract, and that clause 4.3 was a valid limitation of liability clause that barred the plaintiffs' claim.
Orders
Orders of the court
Each of the following questions is answered in the affirmative:
1. Were the ACEA Guideline Terms of Agreement incorporated, in full, into the contract between the plaintiffs and the defendant?
2. If so, does clause 4.3 of the ACEA Guideline Terms of Agreement, on its proper construction, operate as a bar to the plaintiffs bringing this proceeding against the defendant?
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Item 10 of the Schedule did not specify a date.Submissions on incorporation of Guideline Terms The submissions for the plaintiffs pointed out that no one signed the Guideline Terms on their behalf, nor were they provided with a copy[13]. They submitted that whether the Guideline Terms were incorporated into the contract was a matter of construction. The reference to them in the Fee Proposal was “vague and imprecise”[14]. The language used in the Fee Proposal was insufficiently clear to incorporate the Guideline Terms into the contract between the parties. [13] Plaintiff’s submissions, dated 5 May 2015 (Plaintiff’s submissions) at [19].[14] Plaintiff’s submissions at [20]. The submissions referred to Maxitherm Boilers Pty Ltd v Pacific Dunlop Ltd[15] for tests to be applied when determining these questions. One is whether a term is so onerous or is otherwise of a kind such as to suggest that it might not reasonably be expected to be part of the terms of the contract; in which case, the issue is whether the accepting party can reasonably be taken to have assented to the particular term. Another is whether terms “are appropriate to a contract of the type in question”; or whether the terms include provisions “which no one would anticipate in a contract of the type in question”. Another is whether the term is an unusual term “because it is more than ordinarily onerous”.[15] [1998] 4 VR 559, at 561, 568-569. The plaintiffs’ oral submissions emphasised that the word “generally” in the Fee Proposal was not sufficiently certain to incorporate clause 4.3; and in the context in which that document referred to the Guideline Terms, it incorporated no more than provisions relating to the payment of fees. Specific attention would have had to be drawn to a limitation clause, such as clause 4.3[16]. A term would be unusual in this context, if it was more than ordinarily onerous[17]; or if it altered common law rights[18]. Reliance was also placed on the decision in D F McCloy Pty Ltd v Taylor Thomsom Whitting Pty Ltd[19] (McCloy). The evidence advanced on behalf of the defendant was not sufficient to show that the incorporation of the Guideline Terms was common industry practice. However it was accepted that, if the Guideline Terms were incorporated, the plaintiffs’ claim would be barred.[20][16] Reliance was placed on a statement by Brennan J in Oceanic Sun Line Special Shipping Company Inc v Fay (1988) 165 CLR 197 (Oceanic), at pp228-229; and on Cheshire & Fifoot’s Law of Contract (10th Aust Ed) LexisNexis Butterworth’s 2012 at [10.70]. [17] Relying on Maxitherm at p 569.[18] Transcript from hearing of 12 May 2015 (T) 1-101.[19] [2000] NSWSC 1142.[20] T 1-93. The plaintiffs made written submissions, intended to be in relation to both questions, but dealing specifically with the question whether clause 4.3 was incorporated into the contract between the parties. By reference to a passage from Cheshire & Fifoot[21], they submitted that the party relying on a limiting term must show that reasonable notice was given of its existence; or that the party which relied on the clause, “did all that was reasonably necessary to bring (it) to the other party’s attention”[22]. They submitted that, in order to rely on clause 4.3 of the Guideline Terms, the defendant “must prove it drew that term to the plaintiff’s attention (or to the attention of their agent)”. There being no evidence to show this, the clause was not incorporated into the contract.[21] Cheshire & Fifoot’s Law of Contract (10th Aust Ed) LexisNexis Butterworth’s 2012 at [10.70].[22] Citing eBay International AG v Creative Festival Entertainment Pty Ltd [2006] FCA 1768 at [19].