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| IN THE SUPREME COURT OF NEW ZEALAND I TE KŌTI MANA NUI |
| SC 29/2020 [2021] NZSC 85 |
| BETWEEN | BATHURST RESOURCES LIMITED |
| AND | L & M COAL HOLDINGS LIMITED |
| Hearing: | 8 and 9 October 2020 |
Court: | Winkelmann CJ, Glazebrook, O’Regan, Ellen France and Williams JJ |
Counsel: | J E Hodder QC, R J Gordon and D P MacKenzie for Appellants |
Judgment: | 14 July 2021 |
JUDGMENT OF THE COURT
AThe appeal is allowed. The judgments of the High Court and Court of Appeal are set aside and judgment is entered for the appellants.
BThe application to adduce further evidence is dismissed.
CThe respondent must pay the appellants costs of $30,000 plus usual disbursements. We certify for second counsel.
D Costs should be re-determined in the Courts below in light of this judgment.
____________________________________________________________________
SUMMARY OF RESULT
(Given by the Court)
This appeal concerns the proper interpretation of a contract for the sale of coal mining rights. How to interpret the words of a written contract is a perennial issue in the law, and while over time the test to be applied to find the meaning of those words has become settled, the issue of what evidence outside the words of the contract should be allowed to assist with this task continues to be debated. So too the nature of the test for implication of terms in a contract.
All members of the Court have agreed on the approach to the admissibility of extrinsic evidence in cases of contractual interpretation.[1] The Court has also agreed on the test for the implication of terms.[2]
[1]At [54]–[90] per Winkelmann CJ and Ellen France J and [232](a) per Glazebrook, O’Regan and Williams JJ.
[2]At [106]–[117] per Winkelmann CJ and Ellen France J and [232](b) per Glazebrook, O’Regan and Williams JJ.
The Court is unanimous on the interpretation of cl 3.4 of the contract between the parties.[3] Members of the Court have taken different views on the construction of cl 3.10 of the contract. The majority have found in favour of the appellants on this point, which is dispositive.[4] Accordingly, the appeal is allowed. The respondent must pay the appellants costs of $30,000 plus usual disbursements. Costs in the Courts below should be re-determined in light of this judgment. Winkelmann CJ and Ellen France J would have dismissed the appeal.[5]
[3]At [134]–[158] per Winkelmann CJ and Ellen France J and [232](c) per Glazebrook, O’Regan and Williams JJ.
[4]At [281] per Glazebrook, O’Regan and Williams JJ.
[5]At [223].
The reasons of the Court for this result are given in the separate opinions delivered by:
| Para No. | |
| Winkelmann CJ and Ellen France J | [5] |
| Glazebrook, O’Regan and Williams JJ | [232] |
REASONS
WINKELMANN CJ AND ELLEN FRANCE J
Table of Contents
| Introduction | [5] |
| Factual background | [11] |
| Summary of the parties’ submissions | [31] |
| Evidence available to assist in contractual interpretation |
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- Case
- [2021] NZSC 85
- Decision Date
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Orders
Orders of the court
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Background
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Evidence
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