State of New South Wales & 3 Ors v Banabelle Electrical Pty Limited, Banabelle Electrical Pty Limited v State of New South Wales & 3 Ors, State of New South Wales & 2 Ors v Fugen Holdings Pty Limited, Fugen Holdings Pty Limited v State of New South Wales & 2 Ors, State of New South Wales & Ors v Automatic Fire Protection Design Pty Limited, Automatic Fire Protection Design Pty Limited v State of New South Wales & Ors [2002] NSWSC 178

Reported Decision : 54 NSWLR 503

New South Wales Supreme Court

CITATION : State of New South Wales & 3 Ors v Banabelle Electrical Pty Limited, Banabelle Electrical Pty Limited v State of New South Wales & 3 Ors, State of New South Wales & 2 Ors v Fugen Holdings Pty Limited, Fugen Holdings Pty Limited v State of New South Wales & 2 Ors, State of New South Wales & Ors v Automatic Fire Protection Design Pty Limited, Automatic Fire Protection Design Pty Limited v State of New South Wales & Ors [2002] NSWSC 178 FILE NUMBER(S) : SC 55036/01; 55030/01; 55037/01; 55031/01; 55040/01; 55034/01 HEARING DATE(S) : 11/03/02, 12/03/02, JUDGMENT DATE : 22 March 2002

State of New South Wales Walter Construction Group Limited Mr Stephen Tamone PARTIES : Mr Douglas Sutherland Banabelle Electrical Pty Limited Fugen Holdings Pty Limited Automatic Fire Protection Design Pty Limited JUDGMENT OF : Einstein J

Mr MA Pembroke SC, Mr P Liney, Ms T Catanzariti (State of New South Wales, Walter Construction Group Pty Limited, Mr S Tamone, Mr D Sutherland) COUNSEL : Mr M Rudge SC, Mr S Goldstein (Banabelle Electrical Pty Limited and Fugen Holdings Pty Limited) Mr G Sirtes (Automatic Fire Protection Design Pty Limited Mallesons Stephen Jaques (State of New South Wales, Walter Construction Group Pty Limited, Mr S Tamone, Mr D Sutherland) SOLICITORS : Crisp & Associates (Banabelle Electrical Pty Limted and Fugen Holdings Pty Limited) Luchetti & Co (Automatic Fire Protection Design Pty Limited) CATCHWORDS : Contracts - Construction of terms - Contracts upheld where possible - Severance - Expert determination clause - Provision in clause stated that an expert would be a person agreed between the parties or, failing agreement, a person nominated by the person prescribed in the Annexure - No person prescribed in the Annexure - Whether clause void for uncertainty - Whether part of the provision after the disjunctive 'or' could be severed, leaving an implication that the parties had a duty to cooperate in nominating an expert - Implied terms - Terms implied in fact - Terms implied in law - Terms implied to give effect to the presumed intention of the parties - Terms implied from a prior course of dealing - Terms implied where the principle terms are settled but necessary subsidiary terms are absent - Duty to co-operate Commercial Arbitration Act 1984 (NSW) LEGISLATION CITED : Fair Trading Act 1987 (NSW) Supreme Court Rules 1970 (NSW) Trade Practices Act 1974 (Cth) Aiton Australia Pty Ltd v Transfield Pty Ltd (1999) 153 FLR 236 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Ansett Transport Industries (Operations) Pty Limited v The Commonwealth of Australia (1977) 139 CLR 54 Beaton v McDivitt (1987) 13 NSWLR 162 Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd (1982) 149 CLR 600 BP Refinery (Westernport Port) Pty Ltd v President, Councillors and Ratepayers of the Shire of Hastings (1977) 180 CLR 266 Burger King Corporation v Hungry Jacks Pty Ltd [2001] NSWCA 187 Butt v M'Donald (1896) 7 QLJ 68 Butts v O'Dwyer (1952) 87 CLR 267 Byrne v Australian Airlines Limited (1995) 185 CLR 410 Caltex Oil (Aust.) Pty Ltd v Alderton (1964) 81 W.N. (Pt 1) (NSW) 297 Castlemaine Tooheys Ltd v Carlton and United Breweries Ltd (1987) 10 NSWLR 468 Coal Cliff Collieries v Sijehama Pty Ltd (1991) 24 NSWLR 1 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Con Kallergis Pty Limited v Calshonie Pty Limited (1998) 14 BCL 201 Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 David Jones Ltd v Lunn (1969) 91 W.N. (NSW) 468 E.J.R Lovelock Limited v Exportles (1968) 1 Lloyd's Rep 163 Electronic Industries Ltd v David Jones Ltd (1954) 91 CLR 288 Fitzgerald v Masters (1956) 95 CLR 420 Hamlyn & Co v Wood & Co [1891] 2 QB 488 Hardwick Game Farm v Suffolk Agricultural Poultry Producers Association [1969] 2 AC 31 Heimann v The Commonwealth (1938) 38 S.R. (NSW) 691 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Hillas & Co. Ltd v Arcos Ltd [1932] All E.R. Rep 494 Himbleton Pty Ltd v Kumagai (NSW) Pty Ltd (1991) 29 NSWLR 44 CASES CITED : Hooper Bailie Associated v Natcom Group (1992) 28 NSWLR 194 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Hughes Bros Pty Ltd v Trustees of the Roman Catholic Church for the Archdiocese of Sydney (1993) 31 NSWLR 91 Hungry Jacks Pty Ltd v Burger King Corporation [1999] NSWSC 1029 Liverpool City Council v Irwin [1977] AC 239 Luxor (Eastbourne) Ltd v Cooper [1941] AC 108 McCutcheon v David MacBrayne Ltd [1964] 1 WLR 125 Mackay v Dick (1881) 6 App Cas 251 Marshall v The Colonial Bank of Australasia (1904) 1 CLR 632 Meehan v Jones (1982) 149 CLR 571 Moorhouse v Angus & Robertson (No 1) Pty Ltd [1981] 1 NSWLR 700 Nicolene LD v Simmonds [1953] 1 QB 543 New South Wales Cancer Council v Sarfaty (1992) 28 NSWLR 68 Putsman v Taylor (1927) 1 KB 637 Queensland Electricity Generating Board v New Hope Collieries Pty Ltd [1989] 1 Lloyd's Rep 205 Racecourse Betting Control Board v Secretary for Air [1944] Ch 114 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 Shell UK Ltd v Lostock Garage Ltd [1976] 1 WLR 1187 Shepherd v Felt and Textiles of Australia Ltd (1931) 45 CLR 359 Shirlaw v Southern Foundaries (1926) Ltd [1939] 2 KB 206 State Bank of NSW v Chia (2001) 50 NSWLR 587 Sudbrook Trading Estate Ltd v Eggleton [1983] 1 AC 444 The Moorcock (1889) 14 PD 64 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) 38 S.R. (NSW) 632 Trans-Pacific Insurance Co (Australia) Ltd v Grand Union Insurance Co Ltd (1989) 18 NSWLR 675 Trawl Industries of Australia Pty Ltd v Effem Foods Pty Ltd (1992) 27 NSWLR 326 United States Surgical Cooperation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 Update Constructions Pty Ltd v Rozelle Child Care Centre Ltd (1990) 20 NSWLR 251 DECISION : The parties are to bring in short minutes of order providing for an affirmative answer to the separate question. Costs may be argued.