Peppers Hotel Management Pty Limited v Hotel Capital Partners Limited [2004] NSWCA 114

New South Wales Court of Appeal

CITATION : Peppers Hotel Management Pty Limited v Hotel Capital Partners Limited [2004] NSWCA 114 HEARING DATE(S) : 27 May 2003 JUDGMENT DATE : 8 April 2004

JUDGMENT OF : Handley JA at 1; McColl JA at 15; Young CJ in Eq at 116 DECISION : 1. Appeal allowed. 2. Declare that on the true construction of cl 3.3 and cl 3.4 of the Agreement, Hotel Capital Partners Limited is not entitled to serve a Sale Notice on Peppers Hotel Management Pty Limited pursuant to cl 3.4(b) of the Master Agreement made on 17 March 1997 between Trust Company of Australia Limited, Australian Management Limited and Peppers Hotel Management Pty Limited where all that Hotel Capital Partners Limited wishes to sell is part only of the estate or interest that Hotel Capital Partners Limited has in the land the subject of a Lease. 3. Cross-Appeal dismissed. 4. HCP to pay the costs of the Appeal, the Cross-Appeal and the hearing before Palmer J.

CATCHWORDS : CONTRACT - construction of agreement dealing with acquisition and disposal of Trust properties - where respondent evinced intention to sell an estate or interest in Trust properties leased by appellant - clause providing for issuing of sale notice to appellant where respondent wished to sell any estate or interest in a property - whether sale notice may be given by respondent where the proposed sale is of any part of its estate or interest - whether sale notices served by respondent were premature. (D) LEGISLATION CITED : N/A Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Australian Broadcasting Commission v Australasian Performing Right Association (1973) 129 CLR 99 Borough of Glebe v Lukey (Australian Gaslight Co) (1904) 1 CLR 158 Chief Commissioner of Stamp Duties v ISPT Pty Ltd (1997) 45 NSWLR 639 Codelfa Construction Pty Limited v State Rail Authority of NSW (1982) 149 CLR 337 Ex Parte Henry; Re Commissioner of Stamp Duties (1962) 63 SR (NSW) 298 Hall v Busst (1960) 104 CLR 206 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 International Fina Services AG v Katrina Shipping Ltd ("The Fina Samco") [1995] 2 Lloyds Rep 344 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896; [1998] 1 All ER 98 L Schuler AG v Wickman Machine Tool Sales Limited [1974] AC 235 Maggbury Pty Limited v Hafele Australia Pty Limited [2001] HCA 70; (2001) 210 CLR 181 CASES CITED : O'Loughlin v Mount (1998) 71 SASR 206 Optus Vision Pty Ltd v Australian Rugby Football League Ltd [2004] NSWCA 61 Opua Ferries Ltd v Fullers Bay of Islands Ltd [2003] 3 NZLR 740 (PC) Re G.A.E. Pty Ltd [1962] VR 252 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 76 ALJR 436 Rummery v Dorsman (unreported, Court of Appeal, 8 April 1993) Sterns Trading Pty Ltd v Shteinman (1988) NSW ConvR 55-414 Stone v Corporation of Yeovil [1876] 1 P 691 Stow v Mineral Holdings (Australia) Pty Limited (1977) 180 CLR 295 Tillmanns & Co v Knutsford Ltd [1908] 2 KB 385 Truth About Motorways Pty Limited v Macquarie Infrastructure Investment Management Limited [2000] HCA 11; (2000) 200 CLR 591 Upper Hunter District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 Vodafone Pacific Ltd v Mobile Innovations Ltd [2004] NSWCA 15 PARTIES : Peppers Hotel Management Pty Limited (Appellant) Hotel Capital Partners Limited (Respondent) FILE NUMBER(S) : CA 40188/03 COUNSEL : F.M. Douglas QC/R.C. Scruby (Appellant) A.J. Meagher SC/M.J. Leeming (Respondent) SOLICITORS : Gray & Perkins (Appellant) Speed & Stracey (Respondent)