SSABR Pty Ltd v AMA Group Limited [2024] NSWCA 175

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: SSABR Pty Ltd v AMA Group Limited [2024] NSWCA 175 Hearing dates: 24 June 2024 Date of orders: 23 July 2024 Decision date: 23 July 2024 Before: Ward P at [1]; Stern JA at [2]; Price AJA at [210]. Decision: (1) Allow the appeal. (2) Dismiss the notice of contention. (3) Set aside the orders of Rees J made on 15 December 2023 and in lieu thereof dismiss the cross-claim cross-summons filed by the respondents on 22 October 2021. (4) Set aside the orders of Rees J made on 2 February 2024. (5) Remit prayers 1-4 of the summons filed by the appellants on 8 September 2021 to the primary judge for determination. (6) Order that the respondents pay the appellants' costs of the appeal. (7) Direct that the parties exchange submissions on the issue of what order should be made as to the costs of the proceedings at first instance: (a) Parties file submissions of no more than 3 pages by 4.00pm on 30 July 2024; (b) Parties file reply submissions of no more than 2 pages by 4.00pm on 6 August 2024. Catchwords: CONTRACTS – Rectification by construction – whether primary judge erred in failing to find that properly construed, cl 5.1 of Business Sale Agreement provided for an earn-out calculation based on "average annual" earnings before interest and tax EQUITY – Rectification in equity – onus and standard of proof – whether respondents had shown by clear and convincing evidence that cl 5.1 of Business Sale Agreement did not correctly record the common intention of the parties – whether primary judge erred in ordering rectification of cl 5.1 EVIDENCE – Jones v Dunkel inference – whether primary judge erred in failing to draw Jones v Dunkel inferences in respect of respondents' failure to call several witnesses involved in the transaction culminating in the Business Sale Agreement – whether primary judge erred in drawing Jones v Dunkel inference against the appellants for failing to call its solicitor to give evidence Legislation Cited: Competition and Consumer Act 2010 (Cth), Sch 2 Evidence Act 1995 (NSW), s 122(2) Supreme Court Act 1970 (NSW), s 101(1)(a) Cases Cited: Anderson v Canaccord Genuity Financial Ltd [2023] NSWCA 294 Arnold v Britton [2015] AC 1619 Australian Gypsum Ltd v Hume Steel Ltd (1930) 45 CLR 54; [1930] HCA 38 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345; [2012] HCA 17 Australian Securities and Investments Commission v Westpac Banking Corporation (No 2) (2018) 266 FCR 147; [2018] FCA 751 Blatch v Archer (1774) 1 Cow 63; 98 ER 969 Brambles Holdings Ltd v Carey (1976) 15 SASR 270 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Cook's Construction Pty Ltd v Brown [2004] NSWCA 105 Electricity Generation Corporation t/as Verve Energy v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Fabre v Arenales (1992) 27 NSWLR 437 Fonterra Brands (Australia) Pty Ltd v Bega Cheese Ltd [2021] VSC 75; (2021) 159 IPR 494 Fowler v Fowler (1859) 4 De G & J 250; 45 ER 97 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Galea v Bagtrans Pty Ltd [2010] NSWCA 350 GLJ v The Trustees of the Roman Catholic Church for the Diocese of Lismore [2023] HCA 32; (2023) 97 ALJR 857 Hawksford Trustees Jersey Ltd v Stella Global UK Ltd [2012] 2 All ER (Comm) 748 Ho v Powell (2001) 51 NSWLR 572; [2001] NSWCA 168 House v The King (1936) 55 CLR 499; [1936] HCA 40 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563; [1995] HCA 68 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 Ling v Pang [2023] NSWCA 112 Manly Council v Byrne [2004] NSWCA 123 Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336; [1973] HCA 23 Meridian Global Funds Management Asia Ltd v Securities Commission [1995] 2 AC 500 Murray Holdings Ltd v Oscatello Investments Ltd [2018] EWHC 162 (Ch) Newey v Westpac Banking Corporation [2014] NSWCA 319 OneSteel Manufacturing Pty Ltd v BlueScope Steel (AIS) Pty Ltd (2013) 85 NSWLR 1; [2013] NSWCA 27 Property Investors Alliance Pty Ltd v C88 Project Pty Ltd (in liq) [2023] NSWCA 291 Pukallus v Cameron (1982) 180 CLR 447; [1982] HCA 63 Purkess v Crittenden (1965) 114 CLR 164; [1965] HCA 34 RHG Mortgage Corporation Ltd v Ianni [2016] NSWCA 270 Rockcote Enterprises Pty Ltd v FS Architects Pty Ltd [2008] NSWCA 39 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (in liq) (2019) 99 NSWLR 317; [2019] NSWCA 11 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 SSABR Pty Ltd v AMA Group Ltd (No 2) [2024] NSWSC 24 SSABR Pty Ltd v AMA Group Ltd [2023] NSWSC 1551 Standard Chartered Bank of Australia Ltd v Antico (1993) 36 NSWLR 87 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Category: Principal judgment Parties: SSABR Pty Ltd (first appellant) HAAPRC Pty Ltd (second appellant)