BI (Contracting) Pty Limited v AW Baulderstone Holdings Pty Limited [2007] NSWCA 173

New South Wales Court of Appeal

CITATION: BI (Contracting) Pty Limited v AW Baulderstone Holdings Pty Limited [2007] NSWCA 173

HEARING DATE(S): 17 April 2007

JUDGMENT DATE: 17 July 2007

JUDGMENT OF: Beazley JA at 1; Tobias JA at 135; Bell J at 136

DECISION: Appeal dismissed with costs.

CATCHWORDS: CONTRACTS – indemnity clause – construction of indemnity clause – indemnity clause to be construed strictly in the context of the contract as a whole and where ambiguous in favour of proferens – whether Canada Steampship SS principles apply in Australia EVIDENCE – Jones v Dunkel inference – party unable to produce written contract to evidence contractual relationship – trial judge accepted evidence of witnesses as to terms and existence of contract – whether trial judge erred in drawing Jones v Dunkel inference as to existence of contract and alleged terms

LEGISLATION CITED: Dust Diseases Tribunal Act 1989 (NSW) s 32(1) Wrongs Act 1936 (SA) s 25

Alderslade v Hendon Laundry Ltd [1945] KB 189; [1945] 1 All ER 244 Andar Transport Pty Ltd v Brambles Ltd (2004) 217 CLR 424; [2004] HCA 24 Ankar Proprietary Limited v National Westminster Finance (Australia) Limited (1987) 162 CLR 549; [1987] HCA 15 Brambles Ltd v Wail; Brambles Ltd v Andar Transport Ltd (2002) 5 VR 169; [2002] VSCA 150 Canada Steamship Lines Ltd v The King [1952] AC 192 Chan v Cresdon Pty Limited (1989) 168 CLR 242; [1989] HCA 63 Coghlan v S H Lock (Australia) Ltd (1987) 8 NSWLR 88 D Gosewisch "Difficulties with Indemnities between Business Entities", (2006) 34 ABLR 89 Darlington Futures Limited v Delco Australia Proprietary Limited (1986) 161 CLR 500; [1986] HCA 82 Davis v Pearce Parking Station Pty Ltd (1954) 91 CLR 642; (1954) HCA 44 Glebe Island Terminals Pty Limited v Continental Seagram Pty Limited (1993) 40 NSWLR 206 Goodman v Cospak International Pty Ltd [2004] NSWSC 704 Graham v The Royal National Agricultural and Industrial Association of Queensland [1989] 1 Qd R 624 CASES CITED: HIH Casualty and General Insurance Ltd and Ors v Chase Manhattan Bank and Ors [2003] 2 Lloyd's Rep 61 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 JW Carter and D Yates in "Perspectives on Commercial Construction and the Canada SS Case", (2004) 20 Journal of Contract Law 233 Mitchell v Lancashire & Yorkshire Railway Co (1875) LR 10 QB 256 O'Grady v Northern Qld Co Ltd (1990) 169 CLR 356; [1990] HCA 10 PMT Partners Pty Limited (In Liq) v Australian National Parks and Wildlife Service (1995) 184 CLR 301; [1995] HCA 36 Photo Production Ltd v Securicor Ltd [1980] AC 827 Schenker & Co (Aust) Pty Ltd v Maplas Equipment and Services Pty Ltd and Anor [1990] VR 834 Smith & Ors v South Wales Switchgear Ltd [1978] 1 All ER 18 State of NSW v Tempo Services Ltd [2004] NSWCA 4 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35 Tempo Services Ltd v State of New South Wales [2005] HCA Trans 39 Thomas National Transport (Melbourne) Proprietary Limited and Anor v May & Baker (Australia) Proprietary Limited (1966) 115 CLR 353; [1966] HCA 46 Valkonen and Anor v Jennings Constructions Ltd and Ors (Full Court of the Supreme Court of South Australia, Cox, Matheson and Perry JJ, 29 November 1995, unreported)