De Rucci International Pty Ltd v Zhu & Ors [2020] NSWSC 1720

Supreme Court New South Wales

Medium Neutral Citation: De Rucci International Pty Ltd v Zhu & Ors [2020] NSWSC 1720 Hearing dates: 20 – 24 April 2020 Date of orders: 2 December 2020 Decision date: 02 December 2020 Jurisdiction: Common Law Before: Rothman J Decision: The Court makes the following declarations and orders: (1) A declaration that the second defendant, HQ Living Pty Ltd, repudiated the Management Agreement on 7 September 2019; (2) A declaration that the second defendant, HQ Living Pty Ltd, had title to the display stock that was at the Moore Park premises at the time that the Management Agreement was repudiated; (3) Judgment for the plaintiff on the statement of claim; (4) The defendants shall, jointly and severally, pay the plaintiff an amount representing damages for repudiation of the Management Agreement and the return of the amount of guarantee, being a sum, in total, of $230,473.90; (5) Judgment for the cross-defendants on the cross-claim; (6) The defendants shall pay the plaintiff's costs of and incidental to the proceedings; (7) Pursuant to the terms of s 100 of the Civil Procedure Act 2005 (NSW), the defendants shall pay pre-judgment interest on the amount of $230,473.90 from 7 December 2019, at the rate prescribed for pre-judgment interest in Supreme Court Practice Note SC Gen 16; (8) Pursuant to the terms of s 101 of the Civil Procedure Act 2005 (NSW), the defendants shall pay post-judgment interest on $230,473.90 at the prescribed rate therefor; (9) Otherwise, proceedings dismissed. Catchwords: CONTRACTS – Breach of Contract – whether repudiatory conduct – breach of essential term going to root of contract and/or depriving non-defaulting party the benefit for which it contracted – parole evidence – Implied Terms not necessary for business efficacy ; not go without saying – alleged repudiation of another contract not repudiatory of current of current contact – different, although related, parties – Remedies on repudiation. Legislation Cited: Civil Procedure Act 2005 (NSW), s 56 Conveyancing Act 1919 (NSW), s 129 Evidence Act NSW (1995), ss 146, 147 Cases Cited: Agricultural & Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205; [2012] HCA 30 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 BIS Cleanaway (trading as CHEP) & Ors v Tatale & Anor; Brambles (trading as CHEP) v Tatale & Anor [2007] NSWSC 378 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266; [1977] UKPCHCA 1 Byrne v Australian Airlines Ltd (1995) 185 CLR 410; [1995] HCA 24 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24 Commissioner of Taxation v Reliance Carpet Co Pty Ltd (2008) 236 CLR 342; [2008] HCA 22 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 De Rucci International v Zhu [2020] NSWSC 374 Director of Public Prosecutions v Camplin [1978] AC 705 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 218 CLR 471; [2004] HCA 55 Franklins Pty Ltd v Metcash Trading Limited (2009) 76 NSWLR 603; [2009] NSWCA 407 Gaba Formwork Contractors Pty Ltd v Turner Corporation (1993) 32 NSWLR 175 Hadley v Baxendale (1854) 156 ER 145 Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 Hyundai Heavy Industries Co ltd v Papadopoulos [1980] 2 All ER 29 Johnston v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 Koompahtoo Local Aboriginal Land Council & Anor v Sanpine Pty Limited (2007) 233 CLR 115; [2007] HCA 61 Lym International Pty Ltd v Marcolongo [2011] NSWCA 303 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457; [1933] HCA 25 Moschi v Lep Air Services & Anor [1973] AC 331 Paciocco v ANZ (2016) 258 CLR 525; [2016] HCA 28 Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 Re Clune (1988) 14 ACLR 261 Robinson v Harman [1848] 1 Ex 850; 154 ER 365 Secured Income Real Estate v. St. Martin's Investments Pty. Ltd. (1979) 144 CLR 596; [1979] HCA 51 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Victoria v Sutton (1998) 195 CLR 291; [1998] HCA 56 WIN Corporation Pty Ltd v Nine Network Australia Pty Ltd (2016) 341 ALR 467; [2016] NSWCA 297 Texts Cited: McDougall J, "The Interpretation of Commercial Contracts – Hunting for the Intention of the Parties", paper delivered at the College of Law, 2018 Edelman J and L. Bourke, "Hadley v Baxendale", 2017 FW Guest Memorial Lecture, University of Otago, 1 November 2017 Category: Principal judgment Parties: Claim: