Cao v ISPT Pty Ltd [2024] NSWCA 188

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Cao v ISPT Pty Ltd [2024] NSWCA 188 Hearing dates: 16 May 2024 Date of orders: 08 August 2024 Decision date: 08 August 2024 Before: Meagher JA at [1]; Kirk JA at [2]; Griffiths AJA at [73] Decision: 1. Appeal dismissed. 2. Appellants to pay the respondents' costs of the appeal. Catchwords: CONTRACTS – Construction of a commercial lease – Whether COVID public health restrictions prevented tenant from "opening" the premises for business – Paramount clause to be construed before paramountcy can take effect – Not construed to require illegal activity CONTRACTS – Termination – Frustration – Impossibility of performance – Frustration does not apply as COVID public health orders as supervening event was risk for which tenant had assumed responsibility under the lease – Relevant orders did not require radical or fundamental change in what contracted for in any event Legislation Cited: Biosecurity Act 2015 (Cth), Ch 8 Pt 2 Fair Work Act 2009 (Cth), s 789GDA Frustrated Contracts Act 1978 (NSW) Public Health Act 2010 (NSW) Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 (Cth) Public Health (COVID-19 Places of Social Gathering) Order 2020 (NSW) Public Health (COVID-19 Restrictions on Gathering and Movement) Order (No 4) (2020) (NSW), cl 8A Public Health Bill 2010 Retail and Other Commercial Lease (COVID-19) Regulation 2020 (NSW) Retail and Other Commercial Leases (COVID-19) Regulation (No 2) 2020 (NSW) Retail and Other Commercial Leases (COVID-19) Regulation (No 3) 2020 (NSW) Cases Cited: Bank Line Ltd v Arthur Capel & Co [1919] AC 435 Brisbane City Council v Group Projects Pty Ltd [1979] HCA 54; (1979) 145 CLR 143 Chinatex (Australia) Pty Limited v Bindaree Beef Pty Limited [2018] NSWCA 126 City of Subiaco v Heytesbury Properties Pty Ltd [2001] WASCA 140; (2001) 24 WAR 146 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; (1982) 149 CLR 337 Davis Contractors Ltd v Fareham Urban District Council [1956] AC 696 Edwinton Commercial Corporation & Anor v Tsavliris Russ (Worldwide Salvage & Towage) Ltd (The Sea Angel) [2007] EWCA Civ 547; [2007] 2 Lloyd's Rep 517 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 HDI Global Specialty SE v Wonkana No 3 Pty Ltd [2020] NSWCA 296; (2020) 104 NSWLR 634 Housing Commission (NSW) v Falconer [1981] 1 NSWLR 547 J & P Marlow (No 2) Pty Ltd v Hayes & McCabe [2023] NSWCA 117; (2023) 112 NSWLR 29 Laundy Hotels (Quarry) Pty Ltd v Dyco Hotels Pty Ltd [2023] HCA 6; (2023) 276 CLR 500 LCA Marrickville Pty Ltd v Swiss International SE [2022] FCAFC 17; (2022) 290 FCR 435 Lee Chee Wei v Tan Hor Peow Victor [2007] 3 SLR 537; [2007] SGCA 22 London & Northern Estates Co v Schlesinger [1916] 1 KB 20 National Carriers Ltd v Panalpina (Northern) Ltd [1981] AC 675 oOh! Media Roadside Pty Ltd (Formerly Power Panels Pty Ltd) v Diamond Wheels Pty Ltd [2011] VSCA 116; (2011) 32 VR 255 Pioneer Shipping Ltd v BTP Tioxide Ltd [1982] AC 724 Qantas Airways Ltd v Flight Attendants' Association of Australia [2020] FCAFC 227; (2020) 282 FCR 243 Rockment Pty Ltd t/as Vanilla Lounge v AAI Ltd t/as Vero Insurance [2020] FCAFC 228; (2020) 282 FCR 561 Ross v IceTV [2010] NSWCA 272 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 240 CLR 45 Scanlan's New Neon Ltd v Tooheys Ltd [1943] HCA 43; (1943) 67 CLR 169 Simic v New South Wales Land and Housing Corporation [2016] HCA 47; (2016) 260 CLR 85 Star Entertainment Group Ltd v Chubb Insurance Australia Ltd [2022] FCAFC 16; (2022) 400 ALR 25 Woolworths Group Ltd v Gazcorp Pty Ltd [2022] NSWCA 19 Texts Cited: Jane Swanton, "Discharge of Contracts by Frustration" (1983) 57 ALJ 201 NC Seddon and RA Bigwood, Cheshire & Fifoot: Law of Contract (11th Austn edition, LexisNexis, 2017) New South Wales Legislative Assembly, Parliamentary Debates (Hansard), 24 November 2010 The Hon John Logan, "Pandemic Justice – An Historical Perspective" (2020) 94 ALJ 709 Category: Principal judgment Parties: Howard Cao (First Appellant) Yuan Zhao (Second Appellant)