Boral Formwork v Action Makers [2003] NSWSC 713

Reported Decision : (2003) ATPR 41-953

New South Wales Supreme Court

CITATION : Boral Formwork v Action Makers [2003] NSWSC 713 HEARING DATE(S) : 8 July 2003 JUDGMENT DATE : 5 August 2003 JURISDICTION: Equity JUDGMENT OF : Austin J DECISION : Declarations made and injunctions granted

CATCHWORDS : CONTRACT - implied negative stipulation - whether supply agreement contained implied negative stipulation qualifying seller's right to call on standby letter of credit - COMMERCIAL LAW - irrevocable standby letter of credit - principle of autonomy and exceptions - exceptions for negative contractual stipulations and unconscionable conduct contrary to Trade Practices Act - scope and application of exceptions - TRADE AND COMMERCE - unconscionable conduct under ss 51AA and 51AC of the Trade Practices Act - whether seller under supply agreement engaged in unconscionable conduct by demanding full payment on letter of credit without allowance for repair costs of defective goods LEGISLATION CITED : Trade Practices Act 1974 (Cth) ss 51AA, 51AC Alexander v Ajax Insurance Co Ltd [1956] VLR 436 Apple Compute Australia Pty Ltd v George Mekrizis and Ors [2003] NSWSC 126 Austotel Pty Ltd v Franklins Self Serve Pty Ltd (1989) 16 NSWLR 582 Australian Competition and Consumer Commission v Berbatis (2003) 77 ALJR 926 Australian Competition and Consumer Commission v Samton Holdings (2002) 117 FCR 301 Australian Competition and Consumer Commission v Simply No Knead (Franchising) Pty Ltd (2000) 104 FCR 253 Barclay Mowlem Construction Ltd v Simon Engineering (Australia) Pty Ltd (1991) 23 NSWLR 451 Blomley v Ryan (1956) 99 CLR 362 Bolivinter Oil SA v Chase Manhattan Bank [1984] 1 Lloyd's Rep 251 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Commercial Bank of Australia limited v Amadio (1983) 151 CLR 447 Commonwealth of Australia v Verwayen (1990) 170 CLR 394 Craine v Colonial Mutual Fire Insurance Co Ltd (1920) 28 CLR 305 Discount Records Ltd v Barclays Bank Ltd [1975] 1 WLR 315 Durkin v Pioneer Permanent Building Society Ltd [2003] FCA 419 Edward Owen Engineering Ltd v Barclays Bank International Ltd [1978] QB 159 Elias & Rabbath v Matsas & Matsas [1966] 2 Lloyd's Rep 495 Ferro Corporation (Aust) Pty Ltd v International Pools Australia Pty Ltd (1993) 30 NSWLR 539 Fletcher Construction Australia Ltd v Varnsdorf Pty Ltd [1998] 3 VR 812 Francis v South Sydney District Rugby League Football Club ltd [2002] FCA 1306 CASES CITED : Group Josi Re v Walbrook Insurance Co Ltd [1996] 1 WLR 1152 Grundt v Great Boulder Pty Gold Mines Ltd (1937) 59 CLR 641 Hamzeh Malas & Sons v British Imex Industries Ltd [1958] 2 QB 127 Hortico (Australia) Pty Ltd v Energy Equipment Co (Australia) Pty Ltd (1985) 1 NSWLR 545 Hurley v McDonald's Australia Ltd [2000] ATPR 41,741 Lewis v Cook (2000) 18 ACLC 490 Monroe Topple and Associates Pty Ltd v Institute of Chartered Accountants in Australia [2002] FCAFC 197 Old Papa's Franchise Systems Pty Ltd v Camisa Nominees Pty Ltd & Ors [2003] WASCA 11 Olex Focas Pty Ltd v Skodaexport Co Ltd [1998] 3 VR 380,397 Overlook v Foxtel [2002] NSWSC 1059 Pearson Bridge (NSW) Pty Ltd v State Rail Authority of New South Wales (1982) 1 Australian Construction LR 81 Potton Homes v Coleman Contractors (1984) 28 BLR 19 Reed Construction Services Pty Ltd v Kheng Seng (Australia) Pty Ltd (1998) 15 BCL 158 Softplay v Perpetual [2002] NSWSC 1059 Solo Industries (UK) Ltd v Canara Bank [2001] 1 WLR 1800 Spain v Union Steamship Co of NZ Ltd (1923) 32 CLR 138 Stern v McArthur (1988) 168 CLR 489 Themehelp Ltd v West [1995] 3 WLR 751 Wilkinson v Feldworth Financial Services Pty Ltd (1998) 29 ACSR 642 Wood Hall Ltd v Pipeline Authority (1979) 141 CLR 443 Wykes v Samilk [1998] Aust Contract R 90-097 Boral Formwork & Scaffolding Pty Ltd (P) PARTIES : Action Makers Ltd (In Administrative Receivership) (D1) National Australia Bank Ltd (D2) FILE NUMBER(S) : SC 3350/03 COUNSEL : R J Weber SC with K M Richardson (P) P R Graham QC with A J Bulley (D1) Carter Newell, Lawyers (by their Sydney agents: Hunt & Hunt) (P) SOLICITORS : Toomey Pegg Drevikovsky (D1) Bernadette Baynie, Solicitor for National Australia Bank (D2)