Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd

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NEW SOUTH WALES COURT OF APPEAL

CITATION:      Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2003]  NSWCA 75

FILE NUMBER(S):
40220/02

HEARING DATE(S):               05/02/03

JUDGMENT DATE: 11/04/2003

PARTIES:
Toll (FGCT) Pty Limited (Appellant)
Alphapharm Pty Limited (1st Respondent)
Ebos Group Limited (2nd Respondent)
Richard Thomson Pty Limited (3rd Respondent)

JUDGMENT OF:       Sheller JA Young CJ in Eq Bryson J   

LOWER COURT JURISDICTION: District Court

LOWER COURT FILE NUMBER(S):          3271/00

LOWER COURT JUDICIAL OFFICER:     Hogan AJ

COUNSEL:
A S Bell (Appellant)
S White and E Cox;  J Griffiths SC and N J Kidd (Respondents)

SOLICITORS:
Clayton Utz (Appellant)
Withnell Hetherington and Allens Arthur Robinson (Respondents)

CATCHWORDS:
Contract- Incorporation of exemption and exclusion of liability clauses- Must do all that is "reasonably sufficient" to draw notice to it- What is "reasonably sufficient"?- Contract- Rule in L'Estrange v Graucob- Ambit of operation of rule- Significance of signed document- Ticket cases considered.  Construction of contract- Formed by a series of communications and behaviour of the parties- Must consider the whole body of material- Objective approach to construction- Signature strong indication of intention to be bound- Negligence- Bailee for reward- Standing to sue- De facto possession- Dispute as to whether carrier took goods on customer's risk or carrier's risk.  Practice- When leave should be given to adduce further evidence- Carelessness does not constitute special grounds. (D)

LEGISLATION CITED:

DECISION:
Appeal dismissed.  Cross appeal dismissed.

JUDGMENT:

IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL

40220 of 2002

SHELLER JA
YOUNG CJ in EQ
BRYSON J

Friday 11 April 2003

TOLL (FGCT) PTY LTD v ALPHAPHARM PTY LTD

Judgment

  1. SHELLER JA:  I have had the benefit of reading the judgments in draft prepared by Young CJ in Eq and Bryson J.

  2. I agree with what Bryson J has said about the parties’ intention and his remarks that the signing of the credit document and the return of it was objectively a strong indication that Richard Thomson Pty Ltd intended to be bound by everything on both sides of the document.  This is particularly so when there is a subscription to the document on the front “Please read conditions of contract (overleaf) prior to signing”.  However, like Bryson J, I think it was open to the trial Judge, in the circumstances, to find that condition 8 did not form part of the parties’ contract because Finemores did not do what was reasonably sufficient to give Richard Thomson notice of the existence or content of the conditions.

  3. For the reasons given by the other members of the Court I agree with the orders that Young CJ in Eq proposes.

  4. YOUNG CJ in EQ:  This is an appeal from his Honour Acting Judge Alan Hogan sitting in the Commercial List of the Sydney District Court.

  5. The plaintiffs in the District Court were the first and second respondents, Alphapharm Pty Ltd (Alphapharm) and Ebos Group Ltd (Ebos).  The defendant was the present appellant to whom I shall refer by its name at the trial, Finemores.  There were…

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Details
Case
[2003] NSWCA 75
Decision Date

CaseChat Overview and Summary

The High Court of Australia considered an appeal and cross-appeal arising from a dispute between Toll (FGCT) Pty Ltd, a carrier, and Alphapharm Pty Ltd, a pharmaceutical company. The core of the dispute concerned whether Toll had effectively incorporated exclusion and exemption clauses into its contract with Alphapharm, thereby limiting its liability for damage to goods transported. The case ultimately turned on the proper construction of the contract and the application of established principles regarding the incorporation of contractual terms, particularly in the context of signed documents.

The central legal issues before the High Court were: first, whether Toll had taken all reasonable steps to bring its exclusion and exemption clauses to Alphapharm's attention, such that they were incorporated into the contract; and second, the significance of Alphapharm's signature on a consignment note in establishing assent to those terms, even if not fully read or understood. The Court also considered the principles governing the construction of contracts formed through a series of communications and the objective intention of the parties.

The High Court affirmed the principle that a signature on a contractual document, in the absence of fraud or misrepresentation, generally signifies assent to the terms contained within that document, irrespective of whether the signatory has read or understood them. This principle, rooted in the rule established in *L'Estrange v Graucob*, was applied to the consignment note signed by Alphapharm. The Court reasoned that the signature provided a strong objective indication of Alphapharm's intention to be bound by the terms, including the exclusion and exemption clauses, provided they were not so unusual as to require special notice. The Court found that the steps taken by Toll to draw attention to the clauses were reasonably sufficient in the circumstances, and that the terms fell within the ordinary ambit of such contracts.

The appeal and cross-appeal were dismissed.

Orders

Orders of the court

Appeal dismissed. Cross appeal dismissed.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

YOUNG CJ

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Ratio Decidendi

Legal Principle Established

Established by: YOUNG CJ

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