LMI v Baulderstone [2001] NSWSC 886

New South Wales Supreme Court

CITATION : LMI v Baulderstone [2001] NSWSC 886 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50023/00 HEARING DATE(S) : 13/08/01, 14/08/01, 15/08/01, 16/08/01, 17/08/01, 20/08/01, 21/08/01, 23/08/01, 27/08/01, 28/08/01, 29/08/01 JUDGMENT DATE : 12 October 2001

LMI Australasia Pty Limited - First Plaintiff LMI/HHI Limited - Second Plaintiff PARTIES : Baulderstone Hornibrook Pty Limited - First Defendant Docklands Stadium Consortium Pty Limited - Second Defendant Baulderstone Hornibrook International Pty Limited - Third Defendant JUDGMENT OF : Barrett J

COUNSEL : Mr A.J. Sullivan QC/Mr R.J. Weber - Plaintiffs Mr J.C. Campbell QC/Mr P. Santamaria - Defendants SOLICITORS : Moray & Agnew - Plaintiffs Gadens - Defendants CATCHWORDS : CONTRACT - Whether "heads of agreement" contractually binding - whether elements left to be agreed or otherwise uncertain rendered whole unenforceable - coherent and cohesive contract remained when such elements excluded - whether contemplation of future replacement agreement precludes finding of immediate contractual effect - construction of condition precedent - whether condition satisfied - CONTRACT - need for construction consonant with business reality - CONTRACT - implied terms - good faith, reasonableness, ensuring contracted benefit to other party, desisting from conduct hindering fulfilment - implied terms cannot rise above express terms - TORT - inducing breach of contract - requirements as to tortfeasor's knowledge - imputation of knowledge through common directors in wholly owned corporate group - whether one wholly owned subsidiary of parent induces or procures conduct of another wholly owned subsidiary of parent where both operate within authority framework created by that parent - CONTRACT - whether oral contract formed - ESTOPPEL - conventional estoppel Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61 Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 5 BPR 9315 Masters v Cameron (1954) 91 CLR 353 Sinclair Scott & Co Ltd v Naughton (1929) 43 CLR 310 Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR 1 Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd (1968) 118 CLR 429 Pagnan SpA v Feed Products Ltd [1987] 2 Lloyds Rep 601 Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR 600 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 353 Whitlock v Brew (1968) 118 CLR 445 David Jones Ltd v Lunn (1969) 91 WN (NSW) 468 Hughes Aircraft Systems International v Airservices Australia (1997) 76 FCR 151 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Pan Foods Company Importers & Distributors Pty Ltd v Australia and New Zealand Banking Group Ltd (2000) 74 ALJR 791 McCann v Switzerland Insurance Australia Ltd (2000) 75 ALJR 325 Burger King Corporation v Hungry Jack's Pty Ltd [2001] NSWCA 187 Peters (WA) Ltd v Petersville Ltd [2001] HCA 45 Secured Income Real Estate (Aust) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 Shepherd v Felt & Textiles Australia Ltd (1931) 45 CLR 359 Metropolitan Life Insurance Co v RJR Nabisco Inc 716 F.Supp. 1504 (1989) Australian Development Corporation Pty Ltd v White Constructions Ltd [2001] NSWCA 9 Said v Butt [1920] 3 KB 497 O'Brien v Dawson (1941) 41 SR (NSW) 295 - on appeal (1942) 66 CLR 18 Tsaprazis v Goldcrest Properties Pty Ltd (2000) 18 ACLC 285 Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 328 Kuwait Asia Bank EC v National Mutual Life Nominees Ltd [1991] 1 AC 187 CASES CITED : Dairy Containers Ltd v Auditor-General [1995] 2 NZLR 30 New Zealand Guardian Trust Co Ltd v Brooks [1995] 1 WLR 96 CSR Ltd v Wren (1998) 44 NSWLR 463 Short v City Bank of Sydney (1912) 15 CLR 148 Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473 Permanent Building Society v Wheeler (1994) 11 WAR 187 South Australia v Clark (1996) 66 SASR 199 Fitzsimmons v R (1997) 23 ACSR 355 Harkness v Commonwealth Bank of Australia (1993) 32 NSWLR 543 Belmont Finance Corporation Ltd v Williams Furniture Ltd (No 2) [1980] 1 All ER 393 Beach Petroleum NL v Johnson (1993) 43 FCR 1 Re Hampshire Land Company [1896] 2 Ch 743 J.C. Houghton & Co v Nothard Lowe & Wills Ltd [1928] AC 1 Sargent v ASL Developments Ltd (1974) 131 CLR 634 Walker v Wimborne (1975) 137 CLR 1 Industrial Equity Ltd v Blackburn (1977) 137 CLR 567 John Shaw & Sons (Salford) Ltd v Shaw [1935] 2 KB 113 Hogg v Cramphorn Ltd [1967] Ch 254 Bamford v Bamford [1968] 3 WLR 317 Winthrop Investments Ltd v Winns Ltd [1975] 2 NSWLR 666 Kinsela v Russell Kinsela Pty Ltd (1986) 4 NSWLR 722 Pascoe Ltd v Lucas (1999) 75 SASR 737 Rutherford v Poole [1953] VLR 130 Meehan v Jones (1982) 147 CLR 571 Con-Stan Industries Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 Banque Financiere de la Cite v Parc (Battersea) Ltd [1999] 1 AC 221 Pavey & Matthews Pty Ltd v Paul (1986) 162 CLR 221 DECISION : See paragraphs 118 and 119