Central Coast Council v Norcross Pictorial Calendars Pty Ltd [2021] NSWCA 75

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Central Coast Council v Norcross Pictorial Calendars Pty Ltd [2021] NSWCA 75 Hearing dates: 9 March 2021 Decision date: 07 May 2021 Before: Bathurst CJ at [1]; Macfarlan JA at [162]; Gleeson JA at [163] Decision: 1 Appeal allowed. 2 Cross-appeal dismissed. 3 Set aside the orders made by the primary judge and, in lieu thereof: (1) Order the proceedings brought by the respondents against the appellant in the Court below be dismissed. (2) Order that the respondents pay the appellant's costs of those proceedings. (3) Order that the cross-claim brought by the appellant against the respondents in the Court below be dismissed. (4) Order that the appellant pay the respondents' costs of the cross-claim. 4 The respondents to pay the appellant's costs of the appeal and cross-appeal, and to have a certificate under the Suitors' Fund Act 1951 (NSW) if eligible. Catchwords: CONTRACTS – construction – interpretation – joint venture agreement – third party – successor clause – "successor to a party" – whether the expression is wide enough to include nominee – where there was no contemplation work would be carried out by another – where there are no clear words to construe nomination as conferring rights and obligations – where third party acquired its rights as nominee under separate contract CONTRACTS – construction – interpretation – reflective loss principle – exception – where company has no cause of action – where there is no prospect of double recovery CONTRACTS – construction – interpretation – indemnities – "in respect of" – "loss" – whether indemnities extend to loss of diminution in value of shares in nominee as a result of nominee incurring costs for rectification Legislation Cited: Suitors' Fund Act 1951 (NSW) Cases Cited: Alfred McAlpine Construction Ltd v Panatown Ltd [2001] 1 AC 518 Amory v Delamirie (1722) 93 ER 664 Andar Transport Pty Ltd v Brambles Ltd (2004) 217 CLR 424; [2004] HCA 28 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549; [1987] HCA 15 Ballard v Multiplex Ltd [2008] NSWSC 1019; (2008) 68 ACSR 208 Barings plc v Coopers & Lybrand [1997] 1 BCLC 427 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Chen v Karadonis [2002] NSWCA 412 Christensen v Scott [1996] 1 NZLR 273 Commissioner for Taxation v Scully (2000) 201 CLR 148; [2000] HCA 6 Coulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460; [1967] HCA 3 Delnorth Pty Ltd v State Bank of New South Wales (1995) 17 ACSR 379 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Foss v Harbottle (1843) 2 Hare 461 Gate Gourmet Australia Pty Ltd (in liq) v Gate Gourmet Holdings AG [2004] NSWSC 149 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 Jaeger v Bowden (No 2) [2016] NSWSC 897 Johnson v Gore Wood & Co [2002] 2 AC 1 Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd; St Martins Property Corporation Ltd v Sir Robert McAlpine Ltd [1994] 1 AC 85 Marex Financial Ltd v Sevilleja [2021] AC 39; [2020] UKSC 31 Mercedes Holdings Pty Ltd v Waters (No 2) (2010) 186 FCR 450; [2010] FCA 472 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Norcross Pictorial Calendars Pty Ltd v Central Coast Council [2020] NSWSC 1201 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 R v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Rio Tinto Exploration Pty Ltd v Graphite Holdings Pty Ltd [2007] WASCA 276 Salter v Gilbertson (2003) 6 VR 466; [2003] VSCA 1 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 Swynson Ltd v Lowick Rose llp (in liq) [2018] AC 313; [2017] UKSC 32 The Albazero [1977] AC 774 Thomas v D'Arcy [2005] 1 Qd R 666; QCA 068 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107; [1988] HCA 44 Tyco Australia Pty Ltd v Optus Networks Pty Ltd (2004) NSWCA 333 Vandepitte v Preferred Accident Corporation of New York [1933] AC 70 Vickery v Woods (1952) 85 CLR 336; [1952] HCA 7 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 Wilson v Darling Island Stevedoring and Lighterage Co Ltd (1956) 95 CLR 43; [1956] HCA 8 Texts Cited: J D Heydon, Heydon on Contract (Thomson Reuters, 2019) Category: Principal judgment Parties: Central Coast Council (Appellant) Norcross Pictorial Calendars Pty Ltd (First Respondent) PTL Land Pty Ltd (Second Respondent) Representation: Counsel: M Izzo SC with E Walker (Appellant) M Condon SC with N Bentley (First and Second Respondents)