Vodafone Pacific Ltd & Ors v Mobile Innovations Ltd [2004] NSWCA 15

New South Wales Court of Appeal

CITATION : Vodafone Pacific Ltd & Ors v Mobile Innovations Ltd [2004] NSWCA 15 HEARING DATE(S) : 20, 21, 22, 23 October 2003 JUDGMENT DATE : 20 February 2004

JUDGMENT OF : Sheller JA at 1; Giles JA at 2; Ipp JA at 342 DECISION : (1) appeal and cross-appeal each allowed in part; (2) Set aside the declarations in orders 1 to 5, orders 6, 7, 9 and 10 and the judgment made and given on 16 April 2003; (3) Stand the proceedings over to 12 March 2004 at 9.15 for directions; (4) Appellant/cross-respondent pay 25 per cent of the respondent/cross-appellant's costs of the trial; respondent/cross-appellant pay 80 per cent of the appellants'/cross-respondents' costs of the appeal and cross-appeal, and have a certificate under the Suitors Fund Act if otherwise qualified.

CATCHWORDS : Agency contract - engagement by service provider of agent to acquire by direct marketing and manage subscribers to its mobile telephone network - agent conducting Mobile Direct Marketing Operation - construction of provision precluding service provider from dealing with other service providers conducting competitive Mobile Direct Marketing Operation - whether "only" in definition of Mobile Direct Marketing Operation confined preclusion - construction of provision by which service provider set target level for acquisition of subscribers - whether could set target level of nil - whether required target level other than nil - whether terms implied as to good faith and reasonableness in setting target levels - content of implied terms found by judge - whether implication of terms as found precluded by contrary intent in contract - whether implication of terms a process of construction - whether misuse of power in setting target levels - finding of breach in failing to set target levels upheld but other findings of breach overturned - whether loss through failing to set target levels at all proved - whether breaches of other provisions of contract - whether damages for those breaches proved - whether contractual entitlement to payment under other provisions of contract. Transfer contract - agreement by service provider to transfer customers to agent to be managed under agency contract - whether mutual abandonment. Abu Dhabi National Tanker Co v Product Star Shipping Ltd ("The Product Star") (No 2) (1993) 1 Ll R 397; Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349; Australian Broadcasting Commission v Australian Performing Rights Association (1972) 129 CLR 99; Australis Media Holdings Pty Ltd v Telstra Corporation Ltd (1998) 43 NSWLR 104; Biotechnology Austrlia Pty Ltd v Pace (1988) 15 NSWLR 130; Breen v Williams (1996) 186 CLR 71; Burger King Corporation v Hungry Jack's Pty Ltd (2001) NSWCA 187; Castlemaine Tooheys Ltd v Carlton & United Breweries Ltd (1987) 10 NSWLR 468; Butt v McDonald (1896) 7 QLJ 68; Chilcotin Pty Ltd v Cenelage Pty Ltd [1999] NSWCA 11; Byrne v Australian Airlines Ltd (1995) 185 CLR 410; Codelfa Construction Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; The Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; Coulton v Holcombe (1986) 162 CLR 1; DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; The Eastern Extension Australasia and China Telegraph Co Ltd v The Commonwealth (1908) 6 CLR 647; Esso Australia Resources Ltd v Plowman (1995) 183 CLR 10; CASES CITED : Federal Commissioner of Taxation v Ryan (2000) 201 CLR 109; Ferrcom Pty Ltd v Commercial Union Assurance Company of Australia Ltd (1993) 176 CLR 332; Godfrey Constructions Ltd v Kanangra Park Pty Ltd (1972) 128 CLR 529; Hart v MacDonald (1910) 10 CLR 417; Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310; Howard Smith Ltd v Ampol Ltd (1974) AC 821; Lister v Romford Ice and Cold Storage Ltd (1957) AC 555; Mackay v Dick (1881) 6 App Cas 251; Multicon Engineering Pty Ltd v Federal Airports Corporation (1997) 47 NSWLR 631; Paragon Finance Plc v Staunton (2002) 2 All ER 248; Pierce Bell Sales Pty Ltd v Frazer (1973) 130 CLR 575; Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234; Sanderson Computers Pty Ltd v Urica Library Systems BV (1998) 44 NSWLR 73; Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596; Tanwar Enterprises Pty Ltd v Cauchi (2003) 201 ALR 359; TCN Channel 9 Pty Ltd v Hayden Enterprises Pty Ltd (1989) 16 NSWLR 130; Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429; Water Board v Moustakas (1988) 180 CLR 491; Whisprun Pty Ltd v Dixon (2003) 77 ALJR 1598; Vodafone Pacific Ltd - First Appellant/First Cross-Respondent PARTIES : Vodafone Network Pty Ltd - Second Appellant/Second Cross-Respondent Vodafone Pty Ltd - Third Appellant/Third Cross-Respondent Mobile Innovations Ltd - Respondent/Cross-Appellant FILE NUMBER(S) : CA 40322/03 COUNSEL : T F Bathurst QC & T D Castle - First, Second and Third Appellants/First, Second and Third Cross-Respondents F M Douglas QC & V F Kerr - Respondent/Cross-Appellant SOLICITORS : Henry Davis York - First, Second and Third Appellants/First, Second and Third Cross-Respondents Deacons - Respondent/Cross-Appellant