Macquarie International Health Clinic Pty Ltd v Sydney Local Health District [2020] NSWCA 161

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Macquarie International Health Clinic Pty Ltd v Sydney Local Health District [2020] NSWCA 161 Hearing dates: 26–28 February 2020 Date of orders: 3 August 2020 Decision date: 03 August 2020 Before: Bathurst CJ at [1]; Bell P at [339]; McCallum JA at [340] Decision: (1) Appeal dismissed. (2) The appellant pay the respondent's costs of the appeal. Catchwords: CONTRACTS – construction – context – whether party was in default of its obligations under the agreement – whether party had certain powers under the agreement – whether a discretion provided under the agreement was subject to a good faith obligation CONTRACTS – breach of contract – consequences of breach – right to termination – where Notices of Default and Notices of Termination issued – whether non-compliance with the Notice of Default gave the right to terminate the agreement – notices under s 129 Conveyancing Act 1919 (NSW) – reasonable time under the Notice to remedy default Legislation Cited: Conveyancing Act 1919 (NSW) Environmental Planning and Assessment Act 1979 (NSW) Property Law Act 1974 (Qld) Cases Cited: Addenbrooke Pty Ltd v Woollahra Municipal Council (No 2) [2009] NSWLEC 134 Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Australian Guarantee Corporation Ltd v Balding (1930) 43 CLR 140; [1930] HCA 10 Billson v Residential Apartments Ltd [1992] 1 AC 494 Brooke v Clarke (1888) 1 B & Ald 396; 106 ER 146 Burger King Corporation v Hungry Jacks Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187 Dogan v Morton (1935) 35 SR (NSW) 142 Drama Unit Pty Ltd v Fearndale Holdings Pty Ltd (Administrator Appointed) [2019] NSWCA 312 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Esso Research and Engineering Co v Commissioner of Patents (1960) 102 CLR 347; [1960] HCA 31 Forbes v Git [1922] 1 AC 256 Fox v Jolly [1916] 1 AC 1 Gerraty v McGavin (1914) 18 CLR 152; [1914] HCA 23 Giacomi v Nashvying Pty Ltd [2007] QCA 454 Glebe Administration Board v Tasker [1964] NSWR 1307 Harris v Thallon (1926) 26 SR (NSW) 456 Horsey Estate Limited v Steiger [1899] 2 QB 79 Hovan's Hotel Pty Ltd v Cherry (Supreme Court (NSW), Bryson J, 14 March 1994, unrep) Johnson v Senes and Berger [1961] NSWR 566 Kelly v The Queen (2004) 218 CLR 216; [2004] HCA 12 Mackay v Dick (1881) 6 App Cas 251 Macquarie International Health Clinic Pty Ltd v Sydney Local Health District; Sydney Local Health District v Macquarie Health Corporation Ltd; Macquarie International Health Clinic Pty Ltd v City of Sydney Council (No 9) [2016] NSWSC 155 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2008] NSWSC 738 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2010] NSWCA 268 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579; [2000] HCA 65 Mir Bros Projects Pty Ltd v 1924 Pty Ltd [1980] 2 NSWLR 907 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Parke Davis Pty Ltd v Sanofi (No 2) (1982) 43 ALR 487 Penton v Barnett [1898] 1 QB 276 Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd (1954) 90 CLR 235; [1954] HCA 25 Pollak v Yapp [2019] NSWCA 150 Re Media, Entertainment and Arts Alliance; Ex parte the Hoyts Corporation Pty Ltd (1993) 178 CLR 379; [1993] HCA 40 Sanofi v Parke Davis Pty Ltd (No 2) (1983) 152 CLR 1 at 10; [1983] HCA 32 Simic v NSW Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 Sydney South West Area Health Service v Macquarie International Health Clinic Pty Ltd [2011] HCATrans 155 Victoria v Tatts Group Limited (2016) 90 ALJR 392; [2016] HCA 5 Wiggins Island Coal Export Terminal Pty Ltd v New Hope Corporations Ltd [2019] NSWCA 316 Texts Cited: J D Heydon, Heydon on Contract (2019, Thomson Reuters) Category: Principal judgment Parties: Macquarie International Health Clinic Pty Limited (Appellant) Sydney Local Health District (Respondent) Representation: Counsel: N C Hutley SC with S Phillips, E A J Hyde and S Kanagaratnam (Appellant) I M Jackman SC with J Williams and S Scott (Respondent)