State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd & Anor [2001] NSWCA 47

Reported Decision : (2001) 51 NSWLR 399 (2001) Aust Torts Reports 81-618

New South Wales Court of Appeal

CITATION : State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd & Anor [2001] NSWCA 47 FILE NUMBER(S) : CA 40379/99 HEARING DATE(S) : 12, 13, 14 February 2001 JUDGMENT DATE : 15 March 2001

State Bank of New South Wales Ltd - Appellant/Cross-Respondent PARTIES : Currabubula Holdings Pty Ltd - First Respondent/Cross-Appellant Paola Holdings Pty Ltd - Second Respondent JUDGMENT OF : Giles JA at 1; Heydon JA at 144; Ipp AJA at 145

LOWER COURT JURISDICTION : Supreme Court - Commercial Division LOWER COURT 50268/95 FILE NUMBER(S) : LOWER COURT Einstein J JUDICIAL OFFICER :

COUNSEL : R B S Macfarlan QC & C M Harris - Appellant D E J Ryan SC & D A Mallon - Respondents SOLICITORS : Mallesons Stephen Jaques - Appellant Gadens - Respondents CATCHWORDS : BREACH OF CONTRACT - banker and customer - overdraft facility - concern about customer's solvency - bank "freezes" current accounts - no more drawings on current accounts - but arrangements for opening new accounts, for transfer of funds paid into current accounts to new accounts, and for operation on new accounts provided within overdraft limit - whether freezing in breach of implied term not to vary customary mode of dealing without reasonable notice - no implied term - customer's case at trial not founded on such a term. DEFAMATION - bank sends to customer bank statements with "in liq" at end of balance column - whether conveyed that customer in liquidation or that account in liquidation or reduction - bank statements received by fax at customer's office - customer a company - seen by management - also seen by some employees with no business to see them - to whom communicated by bank - whether publication to customer - whether publication to other employees. D BREACH OF CONTRACT - BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 AC 266; Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; Liverpool City Council v Irwin (1977) 180 AC 239; Shirlaw v Southern Foundries (1926) Ltd (1939) 2 KB 206. DEFAMATION - Advantage Personnel Agency Inc v Hicks & Grayson Inc 447 So 2d 330 (1984) (Florida CA, Third District); Diplomat Electric Inc v Westinghouse Electric Supply Company 378 F 2d 377 (1968) (USCA, Fifth Circuit); Duke of Brunswick v Harmer (1849) 14 QB 185; Fausett v American Resources Management Corp 542 F Supp 1234 (1982) (Utah DC, Central Division); Huth v Huth (1915) 3 KB 32; Jones v Amalgamated Television Services Pty Ltd (1991) 23 NSWLR 364; CASES CITED: Jones v Brooks (1974) 45 DLR (3d) 413; Ontario Ltd v Canadian Uniform Ltd (Ont Ct, 12 June 1997; Pullman v Walter Hill & Co Ltd (1891) 1 QB 524; Riddick v Thames Board Mills Ltd (1977) 1 QB 881; Rudd v Cameron (1912) 4 DLR 567; Sims v Wran (1984) 1 NSWLR 317; Speight v Gosnay (1891) 60 LJQB 23; Theaker v Richardson (1962) 1 WLR 151; Toomey v Mirror Newspapers Ltd (1985) 1 NSWLR 171; Traztand Pty Ltd v Government Insurance Office of New South Wales (1984) 2 NSWLR 598; Tunstall v Steigmann (1962) 2 QB 593; Ward v Weeks (1830) 7 Bing 211; Weld-Blundell v Strephens (1920) AC 956. DECISION : (1) Appeal allowed; (2) Orders (1), (3) and (4) made on 5 May 1999 set aside; (3) Judgment for the defendant; (4) Respondents pay appellant's costs of the trial and of the appeal and have a certificate under the Suitors Fund Act if otherwise qualified.