Allspec Constructions and Project Management Pty Ltd v Jana Pty Ltd as trustee for the Azizi Family Trust [2024] NSWSC 592

Supreme Court New South Wales

Medium Neutral Citation: Allspec Constructions and Project Management Pty Ltd v Jana Pty Ltd as trustee for the Azizi Family Trust [2024] NSWSC 592 Hearing dates: 18 March 2024 Date of orders: 17 May 2024 Decision date: 17 May 2024 Jurisdiction: Equity Before: Hmelnitsky J Decision: (1) Judgment for the first plaintiff against the second defendant in the sum of $49,038.05. (2) Direct the parties to bring in short minutes of order as to the amount of pre-judgment interest on the amount referred to in order (1) by 4pm on Friday 24 May 2024. (3) Direct the parties to file and serve submissions of no more than three pages on the question of costs by 4pm on Friday 24 May 2024. (4) Otherwise dismiss the proceeding. Catchwords: CONTRACTS — Construction — Interpretation — where document extremely poorly drafted CONTRACTS — Duress — Illegitimate pressure — commercial pressure — whether pressure amounted to illegitimate pressure EQUITY — Unconscionable conduct — where weaker party was under pressure due to failing business — whether circumstances sufficient to give rise to a special disadvantage GUARANTEE AND INDEMNITY — Contract of guarantee — Construction — Rules of construction — where deed containing guarantee and indemnity poorly drafted — rule to favour surety in face of ambiguity Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Corporations Act 2001 (Cth), s 50AAA Cases Cited: Andar Transport Pty Ltd v Brambles Ltd (2004) 217 CLR 424; [2008] HCA 28 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549; [1987] HCA 15 Arnold v Britton [2015] AC 1619; [2015] UKSC 36 Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441 Australia and New Zealand Banking Group Ltd v Karam (2005) 64 NSWLR 149; [2005] NSWCA 344 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Australian Competition and Consumer Commission v C G Berbatis Holdings Pty Ltd (2003) 214 CLR 51; [2003] HCA 18 Australian Securities and Investments Commission v Kobelt (2019) 267 CLR 1; [2019] HCA 18 Barton v Armstrong [1976] AC 104 Barton v Armstrong [1973] 2 NSWLR 598 Blomley v Ryan (1956) 99 CLR 362; [1956] HCA 81 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337; [1982] HCA 23 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447; [1983] HCA 14 Crescendo Management Pty Ltd v Westpac Banking Corporation (1988) 19 NSWLR 40 Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 260 CLR 1; [2016] HCA 26 Dalton and Schaeffer as Executors of the Estate of the Late John Herman Schaeffer v Naegeli [2024] NSWCA 51 Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50 Feldman v GNM Australia Ltd [2017] NSWCA 107 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Gissing v Gissing [1971] AC 886 HDI Global Specialty SE v Wonkana No 3 Pty Ltd (2020) 104 NSWLR 634; [2020] NSWCA 296 Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235 In re Sherry; London & Country Banking Co. v Terry (1884) 25 ChD 692 Kakavas v Crown Melbourne Ltd (2013) 250 CLR 392; [2013] HCA 25 Louth v Diprose (1992) 175 CLR 621; [1992] HCA 61 Meehan v Jones (1982) 149 CLR 571; [1982] HCA 52 Morton v Kim [2019] NSWCA 273 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Parras Holdings Pty Ltd v Commonwealth Bank of Australia [1997] FCA 1107 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 240 CLR 45; [2002] HCA 5 Sagacious Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149 Smith v William Charlick Ltd (1924) 34 CLR 38; [1924] HCA 13 Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102 Stubbings v Jams 2 Pty Ltd (2022) 276 CLR 1; [2022] HCA 6 Thorne v Kennedy (2017) 263 CLR 85; [2017] HCA 49 Universe Tank Ships Inc of Monrovia v International Transport Workers Federation [1982] 2 All ER 67 Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429; [1968] HCA 8 Wilson v Anderson (2002) 213 CLR 401; [2002] HCA 29 Texts Cited: JD Heydon, Heydon on Contract (2019, Thomson Reuters) N Seddon, Seddon on Deeds (2nd ed, 2022, Federation Press) Category: Principal judgment Parties: Allspec Constructions and Project Management Pty Ltd (ACN 617 645 788) (First Plaintiff) Joseph Elia (Second Plaintiff) Jana Pty Ltd (ACN 158 982 122) as trustee for the Azizi Family Trust (ABN 44 290 667 496) (First Defendant) Anthony Charbel Azizi (Second Defendant) Representation: Counsel: