Sydney Organising Committee for the Olympic Games v Zhu

The Sydney Organising Committee for the Olympic Games (SOCOG) appealed a decision of Bergin J in the Supreme Court of New South Wales. The dispute concerned an Agency Agreement under which the respondent, Mr Zhu, was appointed to sell International Memberships in the Olympic Club to residents of Mainland China, using Olympic indicia and images. SOCOG alleged that Mr Zhu had breached this agreement by using Olympic indicia and images in a manner not permitted by the agreement, and that this breach was induced by the actions of the first defendant (who was substituted as the appellant during the appeal).

The primary legal issue before the Court of Appeal was whether SOCOG had successfully established a claim for inducing breach of contract against the first defendant. This required determining whether the first defendant had intentionally and without justification induced or procured Mr Zhu to breach his Agency Agreement with SOCOG, and whether such breach had caused SOCOG loss. A secondary issue related to whether the first defendant could rely on estoppel as a defence to SOCOG's claim.

The Court of Appeal found that the evidence established that the first defendant had indeed induced Mr Zhu to breach his contract with SOCOG. The court reasoned that the first defendant's actions went beyond mere advice or persuasion and constituted procurement of the breach. The court also found that the first defendant had not established a defence of estoppel. Consequently, the appeal was allowed, and the verdict and judgment of Bergin J for the plaintiff against the first defendant were set aside.

In lieu of the original judgment, the Court of Appeal entered judgment for the plaintiff (SOCOG) against the first defendant in the sum of $326,904, to take effect from 23 November 2001. Bergin J's costs order was confirmed, but no order was made for the costs of the appeal, with the plaintiff being entitled to a certificate under the Suitors' Fund Act 1951 in respect of his own costs of the appeal if otherwise eligible.