Cirrus Real Time Processing Systems Pty Ltd v Jet Aviation Australia Pty Ltd [2023] NSWCA 280

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Cirrus Real Time Processing Systems Pty Ltd v Jet Aviation Australia Pty Ltd [2023] NSWCA 280 Hearing dates: 14 November 2023 Date of orders: 24 November 2023 Decision date: 24 November 2023 Before: Bell CJ at [1]; Leeming JA at [70]; Kirk JA at [95] Decision: (1) Appeal allowed. (2) Set aside the orders made by Ball J on 5 May 2023 and in lieu thereof order: (a) A declaration that on the proper construction of clause 1.1 of Annex E to Attachment B of the contract (B300 Services Support Contract – ACOTS2 (Contract No: HP 201771/2018/001) executed on 31 July 2018 between the plaintiff [now Appellant] as "Contractor" and the defendant [now Respondent] as "Hawker Pacific" with Effective Date of 1 August 2018, the "Base Date Index Value" is the value of the index for the quarter containing the date 1 January 2018 for the calculation of price adjustments on each price adjustment date; (b) The defendant [now Respondent] pay the plaintiff [now Appellant] the outstanding amounts owing to it under the Contract including interest that has accrued on outstanding amounts in accordance with cl 4.3 of the Conditions of Contract; (c) The cross-summons be dismissed. (3) The Respondent pay the Appellant's costs of the appeal. (4) There be no order as to the costs at first instance. Catchwords: CONTRACT — Construction — Interpretation — Contractual purpose — Varied contract to be construed — Commerciality of contractual construction — Price adjustment mechanism — Meaning of Base Date Index Value when that composite term was not defined but when Base Date was defined Legislation Cited: Uniform Commercial Code § 2-209 (U.S.) Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Berry v Berry [1929] 2 KB 316 Concut Pty Ltd v Worrell [2000] HCA 64; (2000) 75 ALJR 312 Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1; (2022) 96 ALJR 89 Creamoata Ltd v The Rice Equalization Association Ltd (1953) 89 CLR 286; [1953] HCA 40 Donau Pty Ltd v ASC AWD Shipbuilder Pty Ltd (2019) 101 NSWLR 679; [2019] NSWCA 185 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; [2017] HCA 12 Federal Commissioner of Taxation v Orica Ltd (1998) 194 CLR 500; [1998] HCA 33 Federal Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd (2000) 201 CLR 520; [2000] HCA 35 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Gloria Jean's Coffees International Pty Ltd v Daboko Ltd [2020] 2 NZLR 488; [2020] NZHC 29 Hillam v Iacullo (2015) 90 NSWLR 422; [2015] NSWCA 196 Hollis v Vabu Pty Ltd (2001) 207 CLR 21; [2001] HCA 44 Integrated Computer Services Pty Ltd v Digital Equipment Corporation (Aust) Pty Ltd (1988) 5 BPR 11,110 International Petroleum Investment Company v Independent Public Business Corporation of Papua New Guinea [2015] NSWCA 363 Johnston v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 Ma Hongjin v SCP Holdings Pte Ltd [2020] SGCA 106 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181; [2001] HCA 70 Miwa Pty Ltd v Siantan Properties Pte Ltd [2011] NSWCA 297 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2015] NSWCA 1 MWB Business Exchange Centres Ltd v Rock Advertising Ltd [2019] AC 119; [2018] UKSC 24 Narich Pty Ltd v Commissioner of Pay-roll Tax [1983] 2 NSWLR 597 Newey v Westpac Banking Corporation [2014] NSWCA 319 Oaklane Dairy Ltd v Flooks [2023] NZHC 1852 Rosas v Toca 2018 BCCA 191 Rye v Phillips 203 Minn 567; 282 NW 459 (1938) Sara Stockham Pty Ltd v WLD Practice Holdings Pty Ltd [2021] NSWCA 51 Skanska Rashleigh Weatherfoil Ltd v Somerfield Stores Ltd [2006] EWCA Civ 1732 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35 Westpac Banking Corporation v Tanzone Pty Ltd [2000] NSWCA 25 Willis Australia Ltd v AMP Capital Investors Ltd [2023] NSWCA 158 XL Insurance Co SE v BNY Trust Company of Australia Limited [2019] NSWCA 215 Texts Cited: Perry Herzfeld and Thomas Prince, Interpretation (2nd ed, 2020, Lawbook Co) Category: Principal judgment Parties: Cirrus Real Time Processing Systems Pty Ltd (Appellant) Jet Aviation Australia Pty Ltd (Respondent) Representation: Counsel: