Keybridge Capital Ltd v Bell Potter Securities Ltd [2022] NSWSC 1022

Supreme Court New South Wales

Medium Neutral Citation: Keybridge Capital Ltd v Bell Potter Securities Ltd [2022] NSWSC 1022 Hearing dates: 2 to 4 May 2022 Date of orders: 1 August 2022 Decision date: 01 August 2022 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Verdict for the first defendant, with costs. Catchwords: STOCKBROKING – shares – plaintiff had 'cornerstone' shareholding in publicly-listed company – stockbroker made 'firm' bid on behalf of client to acquire plaintiff's shares for $10 million – plaintiff 'matches' with 'firm' offer – shares to be transacted by block trade – plaintiff and client yet to open accounts with broker – client yet to provide broker with cleared funds – plaintiff's offer expires – plaintiff and client continue to negotiate directly, to no avail – shares now worth nothing. AGENCY – breach of warranty of authority – principles at [3]-[10] – whether broker warranted authority of client to contract – broker acted within scope of authority – no contract entered into. WORDS AND PHRASES – meaning of 'firm' in stockbroking – whether word had a specific, technical meaning – 'firm' not a term of art. CONTRACTS – whether contract formed by acceptance of 'firm' bid – acceptance amounted to counter-offer – no intention to create legal relations – post-contractual conduct indicated no contract formed. Legislation Cited: ASX Listing Rules Corporations Act 2001 (Cth) Cases Cited: Adeels Palace Pty Ltd v Moubarak (2009) 239 CLR 420; [2009] HCA 48 Allen v Carbone (1975) 132 CLR 528 Apand Pty Limited v The Kettle Chip Company Pty Ltd (1994) 52 FCR 474 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd (No 3) [2009] FCA 1087 BHPB Freight Pty Ltd v Cosco Oceania Chartering Pty Ltd (No 4) (2009) 263 ALR 63 Boulas v Angelopoulos (1991) 5 BPR 11,477 Brambles Holdings Limited v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Brownett v Newtown (1941) 64 CLR 439 C Czarnikow Ltd v Koufos (The Heron II) [1969] 1 AC 350 Cherry v Colonial Bank of Australasia (1869) LR3PC 24 Clarke v Macourt (2013) 253 CLR 1; [2013] HCA 56 Collen v Wright (1857) 27 LJQB 215 Cro Travel Pty Ltd v Australia Capital Financial Management Pty Ltd [2018] NSWCA 153 Farmer v Honan (1919) 26 CLR 183 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Firbank's Executors v Humphreys (1886) 18 QBD 54 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603 G R Securities v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Habton Farms v Nimmo [2003] EWCA Civ 68 Hearse v Staunton [2010] NSWSC 954 Heskell v Continental Express Ltd [1950] 1 All ER 1033 In Re National Coffee Palace Company [1883] 24 Ch D 367 Jones v Dunkel (1959) 101 CLR 298 Leggo v Brown & Dureau Ltd (1923) 32 CLR 95 Max Cooper & Sons Pty Ltd v Sydney City Council (1980) 29 ALR 77 McIntosh v Linke Nominees Pty Ltd [2008] QCA 275 Molonglo Group (Australia) Pty Ltd v Cahill [2018] VSCA 147 Molopo Energy Limited 01 & 02 [2017] ATP 10 Molopo Energy Limited 03R, 04R & 05R [2017] ATP 12 Molopo Energy Ltd, Re; Molopo Energy Ltd v Keybridge Capital Ltd (2014) 104 ACSR 46; [2014] NSWSC 1864 Mr Rental Australia v IRD Services Pty Ltd [2016] NSWSC 118 O'Donnell v Reichard [1975] VR 916 Oliana Foods Pty Ltd v Culinary Co Pty Ltd (in liq) [2020] VSC 693 Payne v Parker [1976] 1 NSWLR 191 Permanent Custodians Ltd v Geagea [2014] NSWSC 562 Perri v Coolangatta Investments Pty Ltd (1982) 149 CLR 537 Queensland Phosphate Pty Limited v Korda and Shepard (as joint and several liquidators of Legend International Holdings Inc (in liq)) [2017] VSCA 269 Ratcliffe v Evans [1892] 1 QB 524 Salter v Cormie (1993) 108 DLR (4th) 372 Schlieske v Overseas Construction Co Pty Ltd [1960] VR 195 Stevenson v Singh [2012] EWHC 2880 (QB) Taylor v Johnson (1983) 151 CLR 422 Toll (FGCT) Pty Limited v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Trentelman v The Owners - Strata Plan 76700 [2021] NSWSC 155 Trentelman v The Owners – Strata Plan No 76700 (2021) 106 NSWLR 227; [2021] NSWCA 242 V/O Rasnoimport v Guthrie & Co Ltd [1966] 1 Lloyd's Rep 1 Vince Coles Pty Ltd v Skischufabrik Dynafit (Court of Appeal (NSW), McHugh JA, 28 October 1985, unrep) Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Dal Pont, GE, Law of Agency (4th ed, 2020, LexisNexis) Watts, Peter and Reynolds, FMB, Bowstead & Reynolds on Agency (22nd ed, 2020, Sweet & Maxwell) Category: Principal judgment Parties: Keybridge Capital Ltd (Plaintiff) Bell Potter Securities Ltd (First Defendant) Roy Mironi (Second Defendant) Representation: Counsel: Mr AT Broadfoot QC / Ms SCB Brenker (Plaintiff) Mr JAC Potts SC / Mr AR Langshaw (First Defendant) No appearance (Second Defendant)