LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd [2003] NSWCA 74

New South Wales Court of Appeal

CITATION : LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Ltd [2003] NSWCA 74 HEARING DATE(S) : 21 October 2002 JUDGMENT DATE : 10 April 2003

JUDGMENT OF : Meagher JA at 1; Hodgson JA at 2; Young CJ in Eq at 13 DECISION : Appeal dismissed with costs. Cross appeal as to costs dismissed.

CATCHWORDS : Contracts- Meaning of "successful"- Conditions to a contract- Construction of commercial contracts- Rules of legal interpretation- When pre-contractual material is admissible to aid construction of a contract- When post-contractual material is admissible to aid construction of a contract- Significance of substitution of contracting parties- "Surrounding circumstance" evidence regarding contracts- Dictionary principle- Frustration of contract. Inducing breach of contract- Companies controlled by common directors- Whether in same position as conspiracy between company and its directors- Held analogy inappropriate- Mere failure by common directors to take steps which might prevent a breach of contract does not constitute inducing a breach. Damages- Gross uncertainty regarding damages due to the absence of evidence should be resolved adversely to the party who could and should have called that evidence- Calderbank letter- How far relevant when one party succeeds as to 80%- Indemnity costs- Cross claim for costs. (D) Aberdeen Asset Management Ltd v Challenger Wealthlink Management Ltd [2002] NSWCA 245 Acorn Consolidated Pty Ltd v Hawkslade Investments Pty Ltd (1999) 21 WAR 425 Administration of the Territory of Papua New Guinea v Daera Guba (1973) 130 CLR 353 Alpine Hardwoods (Aust) Pty Ltd v Hardys Pty Ltd (No 2) (2002) 190 ALR 121 Anglo-Cyprian Trade Agencies Ltd v Paphos Wine Industries Ltd [1951] 1 All ER 873 Bank of Credit and Commerce International SA v Ali [2002] 1 AC 251 Baulkham Hills Private Hospital v GR Securities Pty Ltd (1986) 41 NSWLR 622; on appeal (1986) 40 NSWLR 631 HL Bolton (Engineering) Co Ltd v TJ Graham & Sons Ltd [1957] 1 QB 159 Bowes v Shand (1877) 2 App Cas 455 Brambles Holdings Ltd v Bathurst CC (2001) 53 NSWLR 153 British Motor Trade Association v Salvadori [1949] Ch 556 Brown v Dunsmuir [1994] 3 NZLR 485 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Fotheringham v Fotheringham (No 2) (1999) 46 NSWLR 194 Hearst v WJ Lake & Co Inc 16 P (2d) 627, 629 (1932) Ho v Powell (2000) 51 NSWLR 572 Hofer v Howell (2001) 113 LGERA 391 Investors Compensation Scheme Ltd v West Bromidge Building Society [1998] 1 WLR 896 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 76 ALJR 246 CASES CITED : Manufacturers' Mutual Insurance Ltd v Withers (1988) 5 ANZ Insurance Cases 60-853 Masters v Cameron (1954) 91 CLR 353 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 MGICA (1992) Ltd v Kenny & Good Pty Ltd (1996) 140 ALR 707 Mitchell v Henry (1880) 15 Ch D 181 Multicon Engineering Pty Ltd v Federal Airports Corporation (1996) 138 ALR 425 Naomi Marble & Granite Pty Ltd v FAI General Insurance Co Ltd (No 2) [1999] 1 Qd R 518 Nicoll v Pittsvein Coal Co 269 F 968, 971 (Circuit Court of Appeals, 2nd Circuit) (1920) Nobrega v Trustees of the Roman Catholic Church of the Archdiocese of Sydney (No 2) [1999] NSWCA 133 O'Brien v Dawson (1941) 41 SR (NSW) 295 (affirmed HCA (1942) 66 CLR 18) Oran Park Motor Sport Pty Ltd v Fleissig [2002] NSWCA 371 Pan Foods Company Importers & Distributors Pty Ltd v Australia & New Zealand Banking Group Ltd (2000) 74 ALJ 791 Re Michael; Ex parte Epic Energy (WA) Nominees Pty Ltd (2002) 25 WAR 511 Re Rossfield Group Operations Pty Ltd (1980) 5 ACLR 237; [1981] Qd R 372 Re Sassoon [1933] 1 Ch 858 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 76 ALJR 436 Sasson v Fahevu [1999] NSWCA 400 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9147 Shore v Wilson (1842) 9 Cl & Fin 355; 8 ER 450 Skalkos v Assaf (No 2) [2002] NSWCA 236 Smith v Wilson (1832) 3 B & Ad 728; 110 ER 266 Sportsvision Australia Pty Ltd v Tallglen Pty Ltd (1998) 44 NSWLR 103 LMI Australasia Pty Limited (Appellant) PARTIES : Baulderstone Hornibrook Pty Limited (1st Respondent) Docklands Stadium Consortium Pty Limited (2nd Respondent) Baulderstone Hornibrook International Limited (3rd Respondent) FILE NUMBER(S) : CA 40197/02 COUNSEL : AJ Sullivan QC, RJ Weber SC and KM Richardson (Appellant) RBS Macfarlan QC and PD Santamaria (Respondent) SOLICITORS : Moray & Agnew (Appellant) Gadens (Respondent)