de L’Isle v Knight [2021] NSWSC 809

Supreme Court New South Wales

Medium Neutral Citation: de L'Isle v Knight [2021] NSWSC 809 Hearing dates: 25 and 26 May 2021 Date of orders: 5 July 2021 Decision date: 05 July 2021 Jurisdiction: Common Law Before: Gleeson J Decision: (1) Statement of claim filed 15 June 2020 be dismissed. (2) Plaintiff to pay the defendant's costs of the proceedings. Catchwords: CONTRACTS – construction – interpretation – where parties entered into a loan agreement – where plaintiff and companies associated with defendant subsequently entered into a joint venture – where joint venture terminated by agreement – where termination agreement discharged "all payment obligations" the defendant may have to the plaintiff – whether the loan was a payment obligation discharged by the termination agreement CONTRACTS – construction – interpretation – distinction between accord and satisfaction and accord executory – whether termination deed operated as accord and satisfaction or accord executory CONTRACTS – construction – interpretation – agreements – use of recital in construction of a discharge clause – recital stated the agreement of two parties to the agreement – where other parties to the agreement – whether general words of discharge clause should be read down in accordance with the recital Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Australia and New Zealand Banking Group Ltd v Karam (2005) 64 NSWLR 149; [2005] NSWCA 344 Bagnall v National Tobacco Corporation of Australia Ltd (1934) 34 SR (NSW) 421 Ballantyne v Phillott (1961) 105 CLR 379; [1961] HCA 17 Bank of Credit and Commerce International SA v Ali [2002] 1 AC 251 Byrnes v Kendle (2011) 243 CLR 253; [2011] HCA 26 Chacmol Holdings Pty Ltd v Handberg [2005] FCAFC 40 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 Crossman v Sheahan [2016] NSWCA 200 Day v McLea (1889) 22 QBD 610 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; [1978] HCA 12 El-Mir v Risk [2005] NSWCA 215 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Ford Excavations Pty Ltd v Do Carmo [1981] 2 NSWLR 253 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Grant v John Grant & Sons Pty Ltd (1954) 91 CLR 112; [1954] HCA 23 Hawkins v Bank of China (1992) 26 NSWLR 562 Karam v ANZ Banking Group Ltd [2001] NSWSC 709 Lachlan v HP Mercantile Pty Ltd (2015) 89 NSWLR 198; [2015] NSWCA 130 Lahodiuk v Pace [2013] NSWSC 512 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 McDermott v Black (1940) 63 CLR 161; [1940] HCA 4 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Neuchatel Ashphalte Co Ltd v Barnett [1957] 1 WLR 356 Prenn v Simmonds [1971] 1 WLR 1381 QBE Insurance Australia Ltd v Vasic [2010] NSWCA 166 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 240 CLR 45; [2002] HCA 5 R v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Sargent v ASL Developments Ltd (1974) 131 CLR 634; [1974] HCA 40 Sarina v Fairfax Media Publications Pty Ltd [2018] FCAFC 190 Schwartz v Hadid [2013] NSWCA 89 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 The Movie Network Channels Pty Ltd v Optus Vision Pty Ltd [2010] NSWCA 111 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 United States Surgical Corporation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 Wardley Australia Limited v The State of Western Australia (1992) 175 CLR 514; [1992] HCA 55 Watson v Foxman (1995) 49 NSWLR 315 Waugh Hotel Management Pty Ltd v Marrickville Council [2009] NSWCA 390 Wonall Pty Ltd v Clarence Property Corporation Ltd (2003) 58 NSWLR 23; [2003] NSWSC 497 Texts Cited: V Dixon, Goode on Payment Obligations in Commercial and Financial Transactions (4th ed, 2020, Sweet & Maxwell) Category: Principal judgment Parties: Diane Briere de L'Isle (Plaintiff) Adrian Ronald Knight (Defendant) Representation: Counsel: Mr A J Macauley (Plaintiff) Mr D A Hughes (Defendant)