Burger King Corporation v Hungry Jack's Pty Limited [2001] NSWCA 187

Reported Decision : 69 NSWLR 558

New South Wales Court of Appeal

CITATION : Burger King Corporation v Hungry Jack's Pty Limited [2001] NSWCA 187 FILE NUMBER(S) : CA 40924/99; 40325/00 20 November 2000 21 November 2000 22 November 2000 23 November 2000 24 November 2000 HEARING DATE(S) : 27 November 2000 28 November 2000 29 November 2000 30 November 2000 1 December 2000 4 December 2000 JUDGMENT DATE : 21 June 2001

PARTIES : Burger King Corporation Hungry Jack's Pty Limited JUDGMENT OF : Sheller JA at 1; Beazley JA at 1; Stein JA at 1

LOWER COURT JURISDICTION : Supreme Court LOWER COURT 50258/96 FILE NUMBER(S) : LOWER COURT Rolfe J JUDICIAL OFFICER :

Appellant: A Archibald QC SG Finch SC MR Ellicott COUNSEL : Respondent: TF Bathurst QC NC Hutley SC TD Castle SOLICITORS : Appellant: Allen Allen & Hemsley Respondent: Mallesons Stephen Jacques CATCHWORDS : CONSTRUCTION AND INTERPRETATION OF CONTRACTS - Essential Terms - Whether Time Stipulation an Essential Term - Surrounding Circumstances - Reference to Earlier Contracts Between Parties - IMPLIED TERMS - Implied Terms of Good Faith and Reasonableness - Implication of New Terms at Law - BREACH OF CONTRACT - Validity of Notices of Termination - Whether Breach Capable of Cure - MISTAKE - ACCESSORY LIABILITY - Liability for 3rd Party's Breach of Fiduciary Duty - FIDUCIARY DUTY - Fiduciary Duty Where No Concluded Arrangements Between Parties - STAY OF ORDERS - Failure to Obtain Stay of Non Monetary Orders - Inability to Obtain Reversal of Non Monetary Orders When Orders Complied With - APPEAL - New Issues Raised on Appeal - DAMAGES - Basis of Assessment - Date of Assessment - Assessment of Lost Opportunity - Allowance for Vicissitudes - Interference with Award of Trial Judge - Equitable Compensation Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW) Credit Act 1984 Hire Purchase Agreement Acts 1941, 1960 Industrial Arbitration Act 1940 LEGISLATION CITED : Law of Property Act 1925 (UK) The Money-Lenders and Infants Loan Act 1905 Sale of Goods Act 1923 (NSW) Supreme Court Rules 1973 (NSW) Pt 51, r26 Trade Marks Act 1995 (Cth) Trade Practices Act 1974 (Cth) Abalos v Australian Postal Commission (1990) 171 CLR 167 Alcatel Australia Limited v Scarcella & Ors (1998) 44 NSWLR 349 ASC v AS Nominees Ltd (1995) 133 ALR 1 Asia Television Ltd v Yau's Entertainment Pty Ltd (2000) 48 IPR 283 Australian Broadcasting Commission v Australian Performing Right Association Limited (1973) 129 CLR 99 Batson v De Carvalho (1948) 48 SR (NSW) 417 Beach Petroleum NL v Kennedy & Ors (1999) 48 NSWLR 1 Brickenden v London Loan & Savings Co [1934] 3 DLR 465 [PC] Bunge Corporation v Tradax SA [1981] 1 WLR 711 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Castlemaine Tooheys Ltd v Carlton & United Breweries Ltd (1987) 10 NSWLR 468 Chaplin v Hicks [1911] 2 KB 786 Commissioner for Railways (NSW) v Cavanough (1935) 53 CLR 220 Commonwealth v Amann Aviation Pty Limited (1991) 174 CLR 64 Commonwealth v McCormack (1984) 155 CLR 273 Commonwealth Bank of Australia v Smith (1991) 102 ALR 453 Coulton v Holcombe (1986) 162 CLR 1 Daniels v Anderson (1995) 37 NSWLR 438 Devries v Australian National Railways Commission (1993) 177 CLR 472 DTR Nominees Pty Limited v Mona Homes Pty Limited (1978) 138 CLR 421 Egerton and Others v Esplanade Hotels, London Ltd and Another [1947] 2 All ER 88 Far Horizons Pty Ltd v McDonalds Australia Ltd [2000] VSC 310 Fightvision Pty Limited v Onisforou (1999) 47 NSWLR 473 Fink v Fink (1946) 74 CLR 127 Forestview Nominees Pty Ltd v Perpetual Trustee WA Ltd (1998) 193 CLR 154 Garry Rogers Motors Aust Pty Limited v Subaru (Aust) Pty Ltd [1999] ATPR 41-703 Godfrey Constructions Pty Limited v Kanagra Park Pty Limited (1972) 128 CLR 529 Hoffmann v Fineberg and Others [1949] 1 Ch 245 Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR 151 Hughes Bros Pty Limited v The Trustees of the Roman Catholic Church for the Archdiocese of Sydney & Anor (1993) 31 NSWLR 91 Johnson v Perez (1988) 166 CLR 351 Jones v Dunkel (1959) 101 CLR 298 Kham & Nates Shoes No 2 Inc v First Bank of Whiting (1990) 988 F 2d 1351 L Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 London & Overseas Freighters Ltd v Timber Shipping Co SA [1972] AC 1 CASES CITED: Louis Dreyfus & Co v Parnaso cia. Naviera SA [1959] 1 QB 498 Malec v J C Hutton Pty Limited (1990) 169 CLR 638 McKay v Dick (1881) 6 AC 251 McRae v Commonwealth Disposals Commission (1951) 84 CLR 377 Metropolitan Life Insurance Co v RJR Nabisco Inc (1989) 716 F Supp 1504 Mottram Consultants Ltd v Bernard Sunley & Sons Ltd [1975] 2 Lloyd's Rep. 197 Moran v McMahon (1985) 3 NSWLR 700 National Australia Bank v Bond Brewing Holdings Ltd [1991] 1 VR 386 Nocton v Lord Ashburton [1914] AC 932 Norris v Blake [No 2] (1997) 41 NSWLR 49 Perri v Coolangatta Investments Pty Ltd (1982) 149 CLR 537 Pierce Bell Sales Pty Limited v Frazer (1973) 130 CLR 575 Poseidon Ltd & Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 Postle v Sengstock [1994] 2 Qd R 290 Production Spray Painting & Panel Beating Pty Ltd and ors v Newnham and ors [No 2] (1991) 27 NSWLR 659 Punjab National Bank v de Boinville [1992] 1 WLR 1138 Renard Constructions (ME) Pty Limited v Minister for Public Works (1992) 26 NSWLR 234 Rio Algon Corporation v Jimco Ltd (1980) Utah, 618 P 2d 497 Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 Rugby School (Governors) v Tannahill [1935] 1KB 87 Saxby Bridge Mortgages Pty Ltd v Saxby Bridge Pty Ltd [2000] NSWSC 433 Service Station Association Limited v Berg Bennett & Associates Pty Ltd (1993) 45 FCR 84 Shepherd v Felt & Textiles of Australia Pty Ltd (1931) 45 CLR 359 Shevill v Builders Licensing Board (1982) 149 CLR 620 South Sydney Council v Royal Botanic Gardens [1999] NSWCA 478 South Sydney District Rugby League Football Club v News Ltd (2000) 177 ALR 611 State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) (1999) 73 ALJR 306 Suttor v Gundowda Pty Limited (1950) 81 CLR 418 Taylor v Johnson (1983) 151 CLR 422 Tramways Advertising Pty Limited v Luna Park (NSW) (1938) SR (NSW) 632 Tricontinental Corporation Ltd v HJFI Ltd (1990) 21 NSWLR 689 Tutt v Doyle (1997) 42 NSWLR 10 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 University of Wollongong v Metwally (No 2) (1985) 59 ALJR 481 Water Board v Moustakas (1988) 180 CLR 491 Warman International Limited v Dwyer (1995) 182 CLR 544 Zegluga Polska SA v TR Shipping Ltd [1996] 1 Lloyds Law Rep's 337 DECISION : Appeal allowed in part; Cross-appeal allowed in part