Uranium Equities Ltd v Fewster

Case [2008] WASCA 33


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

TITLE OF COURT  :   THE COURT OF APPEAL (WA)

CITATION:   URANIUM EQUITIES LTD v FEWSTER [2008] WASCA 33

CORAM:   STEYTLER P

McLURE JA
BUSS JA

HEARD:   18 & 19 OCTOBER 2007

DELIVERED          :   22 FEBRUARY 2008

FILE NO/S:   CACV 96 of 2007

BETWEEN:   URANIUM EQUITIES LTD formerly known as BULLION MINERALS LTD (ACN 009 799 553)

First Appellant

GE RESOURCES PTY LTD (ACN 096 473 737)
Second Appellant

AND

MICHAEL EDWARD FEWSTER
First Respondent

SUZANNE THERESA FEWSTER
Second Respondent

EAGLEFIELD HOLDINGS PTY LTD (ACN 009 327 093)
Third Respondent

NARNOO MINING PTY LTD (ACN 084 713 100)
Fourth Respondent

ON APPEAL FROM:

Jurisdiction              :  SUPREME COURT OF WESTERN AUSTRALIA

Coram  :LE MIERE J

Citation  :BULLION MINERALS LTD -v- FEWSTER [2007] WASC 100

File No  :CIV 2041 of 2005

Catchwords:

Contracts - General contractual principles - Whether oral agreement amounted to legally binding contract - Whether parties intended to be legally bound - Whether agreement so uncertain as to be void

Procedure - Application to amend pleadings after trial - Introduction of an alternative cause of action on appeal - No opportunity for parties to lead evidence - Complex evidential and legal matters - Leave to amend pleadings refused

Equity - Remedies - Specific performance - Lack of certainty

Legislation:

Mining Act 1978 (WA), s 119(2)

Result:

Appeal dismissed

Category:    B

Representation:

Counsel:

First Appellant              :     Mr K J Martin QC & Mr M L Bennett & Mr T O Coyle

Second Appellant          :     Mr K J Martin QC & Mr M L Bennett & Mr T O Coyle

First Respondent           :     Mr D R Williams QC & Mr S Ellis

Second Respondent       :     Mr D R Williams QC & Mr S Ellis

Third Respondent         :     Mr D R Williams QC & Mr S Ellis

Fourth Respondent        :     Mr D R Williams QC & Mr S Ellis

Solicitors:

First Appellant              :     Lavan Legal

Second Appellant          :     Lavan Legal

First Respondent           :     Tottle Partners

Second Respondent       :     Tottle Partners

Third Respondent         :     Tottle Partners

Fourth Respondent        :     Tottle Partners

Case(s) referred to in judgment(s):

Aiton Australia Pty Ltd v Transfield Pty Ltd [1999] NSWSC 996; (1999) 153 FLR 236

Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd [2000] WASCA 27; (2000) 22 WAR 101

Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540

Australis Media Holdings Pty Ltd v Telstra Corporation Ltd (1998) 43 NSWLR 104

Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622

Bullion Minerals Ltd v Fewster [2007] WASC 100

Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR 1

Con Kallergis Pty Ltd v Calshonie Pty Ltd (1998) 14 BCL 201

Coulton v Holcombe (1986) 162 CLR 1

Elizabeth Bay Developments Pty Ltd v Boral Building Services Pty Ltd (1995) 36 NSWLR 709

G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631

Geebung Investments Pty Ltd…

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Details
AGLC
Uranium Equities Ltd v Fewster [2008] WASCA 33
Case
[2008] WASCA 33
Decision Date

CaseChat Overview and Summary

Uranium Equities Ltd (formerly Bullion Minerals Ltd), the appellant, appealed against the decision of the Supreme Court of Western Australia that found there was no legally binding contract between it and Eaglefield Holdings Pty Ltd, the respondent. The appeal hinged on whether an oral agreement between the parties amounted to a legally binding contract and whether it was so uncertain as to be void. The appeal also considered whether the trial judge should have allowed an amendment to the pleadings after the trial to introduce an alternative cause of action. The court held that there was no evidence of an intention to be legally bound and that the oral agreement was too uncertain to be enforced. The appeal was dismissed.

The legal issues before the court were whether the parties intended to be legally bound by the oral agreement, whether the terms of the agreement were so uncertain as to be void, and whether the trial judge should have allowed an amendment to the pleadings after the trial. The court found that there was no evidence of an intention to be legally bound and that the oral agreement was too uncertain to be enforced. The court also found that the trial judge should not have allowed an amendment to the pleadings after the trial as it would have introduced an alternative cause of action and would have been unfair to the respondents. The court held that the appeal was without merit and dismissed it.

Orders

Orders of the court

Appeal dismissed

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

JUDGMENT OF THE COURT: This appeal raises issues of contractual intention and certainty. There are other subsidiary issues. The first appellant is a public company. In 2005, it held mining tenements entitling it to explore for gold, uranium, nickel and base metals in various parts of Australia. In May 2006 there was a reorganisation of the first appellant. It changed its name from Bullion Minerals Ltd to Uranium Equities Ltd. Because the parties continue to refer to it as 'Bullion', we will, for the sake of consistency, do the same. The managing director of Bullion during 2005 was Mr Andrew Bantock, a chartered accountant. Its chairman was then Mr Timothy Goyder, who had over 30 years' experience in the exploration and resources industry. Mr Anthony Kiernan, a solicitor, and Mr Douglas Stewart, a geologist, were non‑executive directors of Bullion. Another geologist, Mr John McIntyre, was employed by Bullion as its exploration manager. During 2005, the first and second respondents, Mr and Mrs Fewster, were the directors of, and sole shareholders in, the third respondent, Eaglefield Holdings Pty Ltd (Eaglefield). Mr Fewster is a geologist who, prior to 2005, had acquired a number of mining tenements. He also had considerable experience in forming joint venture arrangements with mining companies. Mr Fewster was the sole director of the fourth respondent, Narnoo Mining Pty Ltd (Narnoo Mining). He held the only share issued in that company on trust for a family trust of which his family were the sole beneficiaries. Eaglefield was the owner of what was described as the Narnoo Project. This was a multi‑commodity resource project located in the Eastern Goldfields, some 240 kms from Kalgoorlie. It consisted essentially of two exploration licences and three applications for exploration licences (tenements) covering, in aggregate, some 900 square kms of land. The tenements spanned a sedimentary basin known as the Narnoo Basin. The Narnoo Basin contained a rock deposit described as the Mulga Rock Deposit or MRD. This contained lignite/sandstone-hosted uranium, scandium, nickel and cobalt deposits. The MRD was divided up into three areas identified respectively as Ambassador, Emperor and Shogun. The Narnoo Basin also contained lignite, an oily young coal used primarily for electric power generation. Bullion learned of the Narnoo Project. On about 2 March 2005, Mr Bantock telephoned Mr Fewster. He told Mr Fewster that Bullion might be interested in acquiring the project. Mr Fewster responded by saying that he was not interested in selling his interest in the project. However, he said that he was considering whether to go into a joint venture with a company needing a secure supply of uranium. He agreed to send, and subsequently sent, an email to Mr Bantock attaching an overview of the project. On 22 March 2005, Mr Bantock and Mr Fewster met at Bullion's offices. On the following day, Mr Bantock sent a letter to Mr Fewster by email. In it, he said that Bullion and Eaglefield shared the objective of establishing a Western Australia owned and operated minerals company to develop the Narnoo polymetallic deposit. He said that Bullion was flexible concerning the structure of the project. He made a number of suggestions in that respect.

Ratio Decidendi

Legal Principle Established

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