Waste Recycling and Processing Corporation v Global Renewables Eastern Creek Pty Ltd

The dispute in *Waste Recycling and Processing Corporation v Global Renewables Eastern Creek Pty Ltd* concerned the interpretation of a Waste Processing Deed. The appellant, Waste Recycling and Processing Corporation, challenged a decision of the respondent, Global Renewables Eastern Creek Pty Ltd, to reject an entire delivery of waste material. The core of the disagreement lay in the scope of the respondent's right under clause 6.2(a) of the Deed to notify the appellant of its intention to reject certain material upon delivery to the waste processing facility.

The primary legal issue before the New South Wales Court of Appeal was whether clause 6.2(a) permitted the respondent to reject an entire delivery of waste, or only that portion of the delivery which contained "Out of Specification Material" as defined in the Deed. A secondary issue was whether the respondent was required to pre-sort the delivery before exercising its right to reject.

The Court of Appeal considered the clause in light of the surrounding circumstances and the overall purpose of the transaction, applying principles of contractual construction that favour business common sense. The Court rejected arguments that relied on extreme or commercially unrealistic interpretations that would lead to absurd results. The Court found that the language of clause 6.2(a) did not mandate pre-sorting and that the respondent was entitled to reject the entire delivery if it contained Out of Specification Material.

The appeal was dismissed, and the respondent was awarded its costs.