BNP PARIBAS v PACIFIC CARRIERS LTD [2002] NSWCA 379

New South Wales Court of Appeal

CITATION : BNP PARIBAS v PACIFIC CARRIERS LTD [2002] NSWCA 379 revised - 29/11/2002 FILE NUMBER(S) : CA 40852/01 HEARING DATE(S) : 23, 24, 25, 26 September 2002 JUDGMENT DATE : 29 November 2002

PARTIES : BNP Paribas - Appellant/Cross Respondent Pacific Carriers Limited - Respondent/Cross-Appellant JUDGMENT OF : Handley JA at 1; Sheller JA at 2; Giles JA at 156

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT 8/99 FILE NUMBER(S) : LOWER COURT Hunter J JUDICIAL OFFICER :

COUNSEL : BW Rayment QC/IE Davidson/AB Gruzman - Appellant/Cross-Respondent AW Street SC/GJ Nell/EGH Cox - Respondent/Cross-Appellant SOLICITORS : Corrs Chambers Westgarth - Appellant/Cross-Respondent Norton White - Respondent/Cross-Appellant CATCHWORDS : ADMIRALTY - bills of lading - split bills of lading - letters of indemnity required for discharge of legumes - effect of signature of bank employee on letters of indemnity - CONTRACT - whether bank was contractually bound to indemnify - P and I Clubs standard form - NEGLIGENCE - whether bank negligent in execution of letters of indemnity - TRADE PRACTICES ACT - whether bank misrepresented effect of letters of indemnity - OSTENSIBLE AUTHORITY - no representations by bank that employee had authority to indemnify LEGISLATION CITED : Trade Practices Act 1974 (Cth) Agbaba v Witter (1977) 51 ALJR 503 Armagas Ltd v Mundogas SA [1986] AC 717 British Thomson-Houston Co v Federated European Bank Ltd [1932] 2 KB 176 Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising & Addressing Co Pty Ltd (1975) 133 CLR 72 Freeman & Lockyer (a firm) v Buckhurst Park Properties (Mangal) Ltd & Anor [1964] QB 480 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Houghton & Co v Nothard, Lowe and Wills Ltd [1927] 1 KB 246 Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 146 CASES CITED: Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191 Perre v Apand (1999) 198 CLR 180 R v Toohey & Anor; Ex parte The Attorney-General for the Northern Territory of Australia (1980) 145 CLR 374 Rosenberg v Percival (2001) 205 CLR 434 Royal British Bank v Turquand (1856) 6 E & B 327; 119 ER 886 State Rail Authority of NSW v Earthline Constructions Pty Ltd (In Liquidation) (1999) 73 ALJR 306 Sullivan v Moody (2001) 75 ALJR 1570 Thompson v Palmer (1933) 49 CLR 507 Walton Stores (Interstate) Ltd v Maher & Anor (1988) 164 CLR 387 DECISION : 1 Appeal allowed; 2 Set aside the judgment and orders 1, 2 and 4 in the Court below; 3 In lieu thereof order that; (a) PCL's summons be dismissed with costs; (b) PCL pay BNP's costs of the first cross-claim; 4 Cross-appeal dismissed with costs; 5 Judgment for BNP against PCL for US$4,378,788.49 by way of restitution for the sum paid by BNP to PCL on 15 November 2001 together with interest thereon at the rate of 3.83% per annum from 15 November 2001; 6 Judgment for BNP against PCL for US$10,108.40 by way of restitution for the sum paid by BNP to PCL on 26 November 2001 together with interest thereon at the rate of 3.83% per annum from 26 November 2001; 7 PCL to pay BNP's costs of the appeal and cross-appeal but to have a certificate under the Suitors' Fund Act 1951, if so qualified; 8 Liberty to either party to apply within seven days to vary orders 5 and 6.