Australia City Properties Management Pty Ltd v The Owners – Strata Plan No 65111 [2021] NSWCA 162

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Australia City Properties Management Pty Ltd v The Owners – Strata Plan No 65111 [2021] NSWCA 162 Hearing dates: 20, 21 & 22 April 2021 Decision date: 04 August 2021 Before: Bathurst CJ at [1]; Payne JA at [360]; McCallum JA at [361] Decision: (1) Appeal allowed. (2) Cross-appeal dismissed. (3) Set aside Order (8) of the orders of the primary judge made on 28 October 2020 and lieu thereof make the following order: (a) Declare that the defendant in failing to comply with the procedure set out in cl 10.2 of the Caretaker Agreement breached its obligations under that provision and as a consequence the plaintiff is entitled to damages for such breach. (b) Order that judgment be entered for the first plaintiff against the defendant in the sum of $1,007,896.13. (4) Remit to the primary judge the question of whether, in the events which have happened, the appellant is required to sell Lot 179 in the strata scheme to the respondent. (5) Order that the respondent pay the appellant's costs of the appeal and cross-appeal and have a certificate under the Suitors' Fund Act 1951 (NSW) if eligible. Catchwords: CONTRACTS – termination – breach of term – what constitutes gross negligence and gross misconduct CONTRACTS – termination – breach of term – implied term – term implied in fact – implied term not to use position to obtain unauthorised benefit – where breach compounded by deliberate deception – gross misconduct CONTRACTS – termination – breach by terminating party – whether repudiation of contract – whether acceptance of repudiation possible – whether party willing to perform obligations under the contract CONTRACTS – construction – interpretation – natural and ordinary meaning – no ambiguity – unusual term – Court must give effect to the language used STATUTORY INTERPRETATION – text, context and purpose of provisions and the mischief they are intended to remedy – Strata Schemes Management Act 1996 (NSW) – Strata Schemes Management Amendment Act 2002 (NSW) – Strata Schemes Management Act 2015 (NSW) – extrinsic material – where purpose of relevant provisions emerges from the Second Reading Speech – savings provisions – Interpretation Act 1987 (NSW) s 30 Legislation Cited: Interpretation Act 1987 (NSW) Strata Schemes Management Act 1996 (NSW) Strata Schemes Management Act 2015 (NSW) Strata Schemes Management Amendment Act 2002 (NSW) Cases Cited: Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (Northern Territory) (2009) 239 CLR 27; [2009] HCA 41 Attorney-General for the State of Queensland v Australian Industrial Relations Commission (2002) 213 CLR 485; [2002] HCA 42 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99; [1973] HCA 36 Batson v de Carvalho (1948) 48 SR (NSW) 417 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Burger King Corporation v Hungry Jack's Pty Ltd [2001] NSWCA 187 Commissioner of Taxation (Cth) v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520; [2000] HCA 35 Concut Pty Ltd v Worrell [2000] HCA 64; 75 ALJR 312 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; [1978] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Foran v Wight (1989) 168 CLR 385; [1989] HCA 51 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Gooley v Westpac Banking Corporation (1995) 129 ALR 628 Hall v Busst (1960) 104 CLR 206; [1960] HCA 84 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115; [2007] HCA 61 L Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623; [1989] HCA 23 Lee v Lee (2019) 266 CLR 129; [2019] HCA 28 Mann v Paterson Constructions Pty Ltd (2019) 267 CLR 560; [2019] HCA 32 Moschi v Lep Air Services Ltd [1973] AC 331 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 NM Superannuation Pty Ltd v Hughes (1992) 27 NSWLR 26 North v Television Corporation Ltd (1976) 11 ALR 599 Owners of the Ship Borvigilant v Owners of the Ship Romina G [2003] EWCA Civ 935 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 R v A2 [2019] HCA 35; 373 ALR 214 Rankin v Marine Power International Pty Ltd [2001] VSC 150; 107 IR 117 Robinson Helicopter Company Inc v McDermott [2016] HCA 22; 331 ALR 550 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 SR 632 Victoria v Tatts Group Ltd [2016] HCA 5; 90 ALJR 392 Waldorf Apartment Hotel, The Entrance Pty Ltd v Owners Corporation SP 71632 [2010] NSWCA 226 Willis Australia Group Services Pty Ltd v Mitchell-Innes [2015] NSWCA 381 Texts Cited: Nil Category: Principal judgment Parties: Australia City Properties Management Pty Limited (ACN 093 915 738) (Appellant/Cross-Respondent) The Owners – Strata Plan No 65111 (Respondent/Cross-Appellant) Representation: Counsel: NJ Kidd SC with SR Meehan (Appellant/Cross-Respondent) SJ Free SC with OR Jones and C Coventry (Respondent/Cross-Appellant)