Biscayne Partners Pty Ltd v Valance Corp Pty Ltd & Ors [2003] NSWSC 874

New South Wales Supreme Court

CITATION : Biscayne Partners Pty Ltd v Valance Corp Pty Ltd & Ors [2003] NSWSC 874 HEARING DATE(S) : 15/09/03, 16/09/03, 17/09/03, 18/09/03, 19/09/03, 22/09/03, 23/09/03, 24/09/03 JUDGMENT DATE : 3 October 2003

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Einstein J DECISION : Purported termination of Management Agreement by Valance parties held invalid. Plaintiff's causes of action in tort for wrongful inducement of breach of contract and for conspiracy to injure by unlawful means not made out. Leave to further address on disparate issues including quantum of damages.

CATCHWORDS : Contracts - Contract of agency for personal services - Artist and artist's company ["the Company"] enter into contract appointing Managing Agent ["the agent"] as sole and exclusive manager of artist in the entertainment industry - Date from which contract bound the parties - Principles of construction - Principles governing implication of terms - Termination clause providing that no breach of the contract is a material breach giving the other party the right to terminate unless written notice is given followed by failure to cure breach within 30 days of notice - Proper construction of termination clause - Purported termination by artist and company of contract without giving the 30 day notice to agent - Subsequent notice given eight months later without prejudice to validity of earlier termination and purporting to give the 30 day notice - Repudiation of contract - Necessity to draw a distinction between on the one hand, a circumstance involving a repudiation by one of the parties in terms of the evincing of an intention no longer to be bound by the contract and on the other hand, a circumstance where the claimed repudiation falls short of an express repudiation - Tort - Interference with contractual relations - Inducement of breach of contract - Principles - Person committing the tort must be a third party standing outside the contractual relation being interfered with - Company having only one appointed director - Artist found to be a de facto director - Whether artist as de fact director liable for the tort of inducing breach of contract where artist and sole appointed director determine that company should wrongly terminate the contract - Conspiracy - Conspiracy to injure by unlawful means - Principles - Intent to injure is a reference to the real purpose which the conspirators are trying to achieve - Equity - Remedies - Action for taking of an account - Plaintiff suing on cause of action for breach of contract - Where a breach of contract is established, it must be shown that there is also a breach of an equitable obligation (such as breach of a fiduciary duty, or breach of an obligation concerning the use of confidential information) before an account of profits will flow - Damages the only remedy which the common law provides for breach of contract - Damages - Damages for loss of chance Conveyancing Act 1919 Corporations Act 2001 (Cth) LEGISLATION CITED : Evidence Act 1995 Fair Trading Act 1987 Supreme Court Act 1970 Trade Practice Act 1974 AG Spalding Bros v AW Gamage Ltd [1914-15] All ER Rep 147 Aiton Australia Pty Ltd v Transfield Pty Ltd (1999) 153 FLR 236 Alcatel Australia Ltd v Scarella (1998) 44 NSWLR 349 Amann Aviation Pty Ltd v Commonwealth (1990) 22 FCR 527 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd (1987) 162 CLR 549 Ansett Transport Industries (Operations) Pty Limited v Commonwealth (1977) 139 CLR 54 ASIC v Adler [2002] NSWSC 171 Attorney General v Blake [2000] UKHL 45; [2001] 1 AC 268 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Pratt v British Medical Association [1919] 1 KB 244 Prenn v Simmonds [1971] 1 WLR 1381 Prior v McNab (1976) 78 DLR (3d) 319 Prior v Lansdowne Press Pty Ltd [1977] VR 65 Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 Renard Constructions v (ME) v Minister for Public Works (1992) 26 NSWLR 234 Robinson v Harman (1848) 1 Ex 850; 154 ER 363 Rossfield Group Operations Pty Ltd, Re (1980) 5 ACLR 237 Ross T Smyth & Co Ltd v T.D. Bailey Son & Co [1940] 3 All ER 60 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 186 ALR 289 Rutherford v Poole [1953] VLR 130 Said v Butt [1920] 3 KB 497 Sapwell v Bass [1910] 2 KB 486 Secured Income Real Estate v St Martin's Investments Pty Ltd (1979) 144 CLR 596 Sellars v Adelaide Petroleum NL (1992) 179 CLR 332 Shell UK 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) Limited [1939] 2 KB 206 Short v City Bank of Sydney (1912) 15 CLR 148 State of New South Wales v Bannabelle Electrical Pty Limited [2002] NSWSC 178 Surrey County Council v Bredero Homes Ltd [1993] 1 WLR 1361 TCN Channel Nine v Hayden Enterprises Pty Limited (1989) 16 NSWLR 130 The Moorcock (1889) 14 PD 64 Thiess Watkins White Constructions Ltd (in liq) v National Mutual Life Nominees Ltd (unreported, Supreme Court of New South Wales, 20 October 1991, BC910152) Tito v Waddell (No. 2) [1977] Ch 106 Town & Country Property Management Services Pty Ltd v Kaltoum [2002] NSWSC 166 Tramways Advertising Pty Ltd v Luna Park (NSW) Ltd (1938) SR 632 Trans-Pacific Insurance Co (Australia) Ltd v Grand Union Insurance Co Ltd (1989) 18 NSWLR 675 Tricontinental Corp Ltd v HDFI Ltd (1990) 21 NSWLR 689 Tsaprazis v Goldcrest Properties Pty Ltd (2000) 18 ACLC 285 Tymshare Inc v Covell 727 F2d 1145 (1984) United States Surgical Cooperation v Hospital Products International Pty Ltd [1982] 2 NSWLR 766 Walden Properties Ltd v Beaver Properties Pty Ltd [1973] 2 NSWLR 815 Wenham v Ella (1972) 127 CLR 454 White Trucks Pty Ltd v O'Reily (1948) 66 WN (NSW) 101 Wood v Grand Valley Railway Co (1915) 51 SCR 283 Wrotham Park Estate Co v Parkside Homes Ltd [1974] 1 WLR 798 Yango Pastoral Co Pty Ltd v First Chicago Australia Ltd (1978) 139 CLR 410 Biscayne Partners Pty Ltd (Plaintiff) PARTIES : Valance Corp Pty Ltd (First Defendant) Holly Rachel Vukadinovic (also known as Holly Valance) (Second Defendant) Rachel Jane Stevens (Third Defendant) FILE NUMBER(S) : SC 50199/02 COUNSEL : Mr JJ Garnsey QC, Mr R Lancaster, Mr JP Donohoe (Plaintiff) Mr R Cobden, Ms R Rana (Defendants) SOLICITORS : Tress Cocks & Maddox (Plaintiff) Henry Davis York (Defendants)