Kara Kar Holdings Pty Ltd and Ors v Knudsen and Anor [2001] NSWCA 276

New South Wales Court of Appeal

CITATION : Kara Kar Holdings Pty Ltd and Ors v Knudsen and Anor [2001] NSWCA 276 FILE NUMBER(S) : CA 40894/00 HEARING DATE(S) : 21 June 2001 JUDGMENT DATE : 28 August 2001

Kara Kar Holdings Pty Ltd - 1st Appellant William Yardy - 2nd Appellant PARTIES : Jennifer Yardy - 3rd Appellant Neils Knudsen - 1st Respondent Suchindra Knudsen - 2nd Respondent JUDGMENT OF : Mason P at 1; Stein JA at 32; Ipp AJA at 87

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT EQ 1150/91 FILE NUMBER(S) : LOWER COURT Austin J JUDICIAL OFFICER :

COUNSEL : R G Forster SC/J J de Meyrick - Appellants A J Sullivan QC/P L Dodson - Respondents SOLICITORS : Lincoln Smith & Company - Appellants Koffels - Respondents CATCHWORDS : PROCEDURE - Notice of Motion - fresh evidence - whether requirements in Greater Wollongong CC v Cowan met - CONTRACT - undertakings - construction - whether ambiguity in meaning of undertakings - intention of parties - CONTRACT - whether there was a legally binding agreement - whether a proposal - discretion of trial judge - EVIDENCE - discretion of trial judge - whether oral or documentary evidence preferable - credibility - EQUITY - estoppel - whether estopped from denying the existence of a binding agreement - TRUSTS - discretion of trustee - whether purporting to exercise discretion - whether intended to pay entitlements on basis of correct accounts - trustee acting in good faith - D LEGISLATION CITED : N/A Greater Wollongong CC v Cowan (1955) 93 CLR 435 Kervan Trading Pty Ltd v Mercantile Mutual Insurance (Aust) Ltd [2000] NSWCA 356 McDonald v McDonald (1965) 113 CLR 529 CASES CITED: Muir v City of Glasgow Bank (1879) 4 App Cas 337 Orr v Holmes (1998) 76 CLR 632 Re Anderson Ex Parte Alexander (1927) 27 SR (NSW) 29 Rosenberg v Percival (2001) 75 ALJR 734 Warren v Coombes (1978-79) 142 CLR 531 DECISION : 1) Appeal allowed. 2) The appellants to pay the costs of the Motion dismissed on 21 June 2001. 3) The respondents to pay the appellants costs of the appeal excluding the costs of the lengthy first set of written submissions. 4) Parties to file Short Minutes of Order within 7 days. If the parties cannot agree on orders, each should file the preferred version together with supporting written submissions within a further 7 days.