ISS Facility Management Pty Ltd & Anor v Quality Bakers Australia Pty Ltd & Ors [2020] NSWDC 447

District Court New South Wales

Medium Neutral Citation: ISS Facility Management Pty Ltd & Anor v Quality Bakers Australia Pty Ltd & Ors [2020] NSWDC 447 Hearing dates: 5 August-7 August 2020 Date of orders: 14 August 2020 Decision date: 14 August 2020 Jurisdiction: Civil Before: Abadee DCJ Decision: See paragraph 220 Catchwords: CONTRACTS – commercial contracts – parties in negotiation for entry into long term contract for supply of facilities management services – parties entered due diligence agreement – purposes include opportunity for prospective services provider to verify assumptions made and scope the services for further agreement – negotiations failed with no long term contracted entered – service provider seeks costs of due diligence under reimbursement obligation in due diligence agreement – customer resists claim for costs under exception to reimbursement obligation – proper construction of exception – significance of context, commercial purposes, and surrounding circumstances to construction of exception – identifying businesslike interpretation Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW), rr 14.14, 15.3, 15.4 Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Baulkham Hills Private Hospital Pty Ltd v GR Securities Pty Ltd (1986) 40 NSWLR 622 Byrnes v Kendle (2011) 243 CLR 253 Cacace v Bayside Operations Pty Ltd [2006] NSWSC 572 Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603 Jireh International Pty Ltd t/as Gloria Jean's Coffee v Western Exports Services Inc [2011] NSWCA 137 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104 Paciocco v Australia and New Zealand Banking Group (2015) 236 FCR 199 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603 South Sydney District Rugby League Football Club Ltd v News Ltd [2000] FCA 1541 South Western Sydney Local Health District v Gould [2018] NSWCA 69 Spencer v Harding (1870) LR 5 CP 561 Taylor v Johnson (1983) 151 CLR 422 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522 Texts Cited: Lewison & Hughes, The Interpretation of Contracts in Australia, Lawbook Co 2012 Category: Principal judgment Parties: ISS Facility Management Pty Ltd ABN 70 108 821 576 (First Plaintiff) ISS Facility Services Limited NZBN 942904064321 (Second Defendant) Quality Bakers Australia Pty Ltd ABN 45 004 205 449 (First Defendant) Goodman Fielder Consumer Foods Pty Limited (Second Defendant) Goodman Fielder New Zealand Limited (Third Defendant) Representation: Counsel: Mr A Vincent for the plaintiffs Mr J Hutton for the defendants