SST Consulting Services Pty Ltd v Rieson [2004] FCA 937

FEDERAL COURT OF AUSTRALIA

SST Consulting Services Pty Ltd v Rieson [2004] FCA 937 TRADE PRACTICES – section 47 (1) of Trade Practices Act 1974 (Cth) ('TPA') –whether agreement gave effect to exclusive dealing within meaning of s 47(6) of TPA – whether requirement to provide pack and unpack services as condition of loan amounted to third line forcing – application of s 4L of TPA – whether contravening provision capable of severance CONTRACT -illegality – whether obligations of the borrower to repay principal and interest void and unenforceable – test of severability – whether illegal provision is ancillary or whether the elimination of illegal promise alters the nature of the contract CONTRACT -guarantee – whether guarantee rendered unenforceable because of illegality of principal obligations guaranteed News Limited & Ors v Australian Rugby Football League Limited & Ors (1996) 64 FCR 410 cited

McFarlane v Daniell (1938) 38 SR 337 referred to

Humphries v The Proprietors Surfers Palms North Group Titles Plan 1955 (1994) 179 CLR 597 referred to

Carney v Herbert [1985] AC 301 cited SST CONSULTING SERVICES PTY LTD ACN 083 263 914 v STEPHEN CHARLES RIESON & ANOR N1367 OF 2002 EMMETT J 21 APRIL 2004 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY N1367 OF 2002

BETWEEN: SST CONSULTING SERVICES PTY LTD ACN 083 263 914

APPLICANT

AND: STEVEN CHARLES RIESON

FIRST RESPONDENT

SCOTT MURRAY BELL

SECOND RESPONDENT

JUDGE: EMMETT J

DATE OF ORDER: 21 APRIL 2004

WHERE MADE: SYDNEY

THE COURT ORDERS THAT: 1. Judgment be entered for the applicant in the sum of $1,514,890.00 2. The cross-claim be dismissed. 3. The applicant pay the respondents' costs thrown away by: (a) the applicant's amendment to the reply to defence and defence to cross-claim, filed in Court on 20 April 2004, by inserting paragraph 4(b); and (b) the applicant's further application to the Court on 19 April 2004 to amend the reply to defence and defence to cross-claim, in so far as the application was unsuccessful. 4. The respondents otherwise pay the applicant's costs including any reserved costs of interlocutory proceedings in the Federal Court and the costs of the proceedings and all interlocutory proceedings in the Supreme Court of New South Wales not dealt with by order of the Supreme Court. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.