Gispac Pty Ltd v Michael Hill Jeweller (Australia) Pty Ltd [2024] NSWSC 18

Supreme Court New South Wales

Medium Neutral Citation: Gispac Pty Ltd v Michael Hill Jeweller (Australia) Pty Ltd [2024] NSWSC 18 Hearing dates: 22, 23, 25 August, 22 November 2022 Date of orders: 31 January 2024 Decision date: 31 January 2024 Jurisdiction: Common Law Before: Gleeson J Decision: (1) Judgment for the plaintiff against the defendant in the amount of $2,259,971.40. (2) The defendant to pay the plaintiff interest on the amount of the judgment referred to in Order 1 above pursuant to s 100 of the Civil Procedure Act 2005 (NSW) from 19 June 2019 to the date of judgment. (3) The defendant to pay the plaintiff's costs of the proceedings. (4) Direct that the Exhibits be returned after 28 days. Catchwords: CONTRACTS — express terms — incorporation of terms into written contract — where customer ticked the box on sales agreement referring to supplier's terms and conditions of trading CONTRACTS — construction — take or pay, annual quantity, and exclusivity provisions — whether provisions breached — whether take or pay provision void as a penalty — whether take or pay provision collateral stipulation to obligation to purchase annual quantity CONTRACTS — formation — consideration — whether contract void for illusory consideration — construction of supplier's executory promise to supply products CONTRACTS — whether unilateral amendment of supplier's terms — whether conventional estoppel established — whether parties adopted mutual assumption as to the terms of their legal relationship CONTRACTS — terms — whether provisions void or unenforceable by reason of alleged misleading or deceptive conduct or unconscionable conduct — whether reasonable expectation of disclosure of specific terms of supplier's terms and conditions of trading — whether failure to disclose specific terms was misleading or unconscionable conduct — where commercial negotiation at arm's length for the supply of goods to customer on supplier's standard terms and conditions of trading Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Competition and Consumer Act 2010 (Cth), Sch 2 - Australian Consumer Law, ss 18, 21, 22 Evidence Act 2005 (NSW), s 56 Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Andrews v Australia and New Zealand Banking Group Ltd (2012) 247 CLR 205; [2012] HCA 30 Ange v First East Auction Holdings Pty Ltd (ACN 083 112 505) [2011] VSCA 335; (2011) 284 ALR 638 Aquamore Credit Equity Pty Ltd v Hung [2021] NSWSC 1681 Arab Bank Australia Ltd v Sayde Developments Pty Ltd (2016) 93 NSWLR 231; [2016] NSWCA 328 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Australian Competition and Consumer Commission v Medibank Private Ltd (2018) 267 FCR 544; [2018] FCAFC 235 Australian Competition and Consumer Commission v Geowish Pty Ltd (No 3) [2019] FCA 72; (2019) 368 ALR 441 Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd (2021) 285 FCR 133; [2021] FCAFC 40 Australian Securities and Investments Commission v Kobelt (2019) 267 CLR 1; [2019] HCA 18 Baltic Shipping Co v Dillon "Mikhail Lermentov" (1991) 22 NSWLR 1 Banque Commerciale SA (in liq) v Akhil Holdings Limited (1990) 169 CLR 279; [1990] HCA 11 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Butcher v Lachlan Elder Realty Pty Limited (2004) 218 CLR 592; [2004] HCA 60 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Carnival Plc v Karpik (Ruby Princess) (2022) 294 FCR 524; [2022] FCAFC 149 Connor v Blacktown District Hospital [1971] 1 NSWLR 713 Dialogue Consulting Pty Ltd v Instagram Inc (2020) 291 FCR 155; [2020] FCA 1846 Electricity General Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Ermogenous v Greek Orthodox Community (2002) 209 CLR 95; [2002] HCA 8 Fitzgerald v Masters (1956) 95 CLR 420; [1956] HCA 53 Franklins Pty Ltd v Metcash Trading Ltd; Metcash Trading Ltd v Franklins Pty Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Gibb v Commissioner of Taxation (Cth) (1996) 118 CLR 628; [1966] HCA 74 Gilberto v Kenny (1983) 57 ALJR 283 Halford v Price (1960) 105 CLR 23; [1960] HCA 38 Harris v Harris [2021] NSWCA 326 Hollaway v McFeeters (1956) 94 CLR 470 Hung v Aquamore Credit Equity Pty Ltd [2022] NSWCA 272 Hyder Consulting (Australia) Pty Ltd v Wilh Wilhelmsen Agency Pty Ltd [2001] NSWCA 313 Interfoto Picture Library Ltd v Stiletto Visual Programmes Ltd [1989] 1 QB 433 In the matter of Gelpack Enterprises Pty Ltd (in liq) [2015] NSWSC 1558 Jenyns v Public Curator (Qld) (1953) 90 CLR 113 Karpik v Carnival Plc [2023] HCA 39; (2023) 98 ALJR 45 Kelly v The Queen (2004) 218 CLR 216; [2004] HCA 12 Macquarie International Clinic Pty Ltd v Sydney South-West Area Health Service [2010] NSWCA 268; (2010) 15 BPR 28,563 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 Marriner v Australian Super Developments Pty Ltd [2016] VSCA 141 Maxitherm Boilers Pty Ltd v Pacific Dunlop Ltd [1998] 4 VR 559 McBride v ASK Funding Pty Ltd [2013] QCA 130 Meetfresh Franchising Pty Ltd v Ivanman Pty Ltd [2020] NSWCA 234 Miles v Luneburger Franchising Pty Ltd [2021] NSWCA 248 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357; [2010] HCA 31 Moratic Pty Ltd v Gordon [2007] NSWSC 5 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Multiplex Constructions Pty Ltd v Abgarus Pty Ltd (1992) 33 NSWLR 504 National Australia Bank Limited v Dionys as Trustee for the Angel Family Trust [2016] NSWCA 242 Oceanic Sun Line Special Shipping Company Inc v Fay (1988) 165 CLR 197; [1988] HCA 32 Paciocco v Australia & New Zealand Banking Group Limited (2015) 236 FCR 199; [2015] FCAFC 50 Paciocco v Australia and New Zealand Banking Group Limited (2016) 258 CLR 525; [2016] HCA 28 Placer Development Ltd v The Commonwealth (1969) 121 CLR 353; [1969] HCA 29 Ryledar Pty Ltd v Europhic Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 SAMM Property Holdings Pty Ltd v Shaye Properties Pty Ltd [2017] NSWCA 132; (2017) 345 ALR 633 Segelov v Ernst & Young Services Pty Ltd (2015) 89 NSWLR 431; [2015] NSWCA 156 Smith v South Wales Switchgear Co Ltd [1978] 1 WLR 165 Stubbings v Jams 2 Pty Ltd [2022] HCA 6; (2022) 96 ALJR 271 Surfstone Pty Ltd v Morgan Consulting Engineers Pty Ltd [2017] 2 Qd R 66; [2016] QCA 213 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 United Resource Management Pty Ltd v Par Recycling Services Pty Ltd [2023] NSWCA 236 Wallaby Grip Ltd v QBE Insurance (Australia) Ltd; Stewart v QBE Insurance (Australia) Ltd (2010) 240 CLR 444; [2010] HCA 9 Warner Bros Feature Productions Pty Ltd v Kennedy Miller Mitchell Films Pty Ltd [2018] NSWCA 81 Westpac Banking Corporation v Tanzone Pty Ltd [2000] NSWCA 25; (2000) 9 BPR17,521 Texts Cited: J W Carter, Contract Law in Australia (J W Carter Publishing, 8th Ed, 2023) Cheshire & Fifoot, Law of Contract (LexisNexis Butterworths, 12th Australian Edition, 2022) Category: Principal judgment Parties: Gispac Pty Ltd (Plaintiff) Michael Hill Jeweller (Australia) Pty Ltd (Defendant) Representation: Counsel: D R Sulan SC / R K Jameson (Plaintiff) J Muir / A Newman (Defendant)