Sagacious Procurement Pty Limited (subject to a Deed of Company arrangement) v Symbion Health Limited (formerly Mayne Group Limited) [2006] NSWSC 654

New South Wales Supreme Court

CITATION : Sagacious Procurement Pty Limited (subject to a Deed of Company arrangement) v Symbion Health Limited (formerly Mayne Group Limited) [2006] NSWSC 654

HEARING DATE(S) : 29/05/06-1/06/06, 5/06/06-9/06/06, 14/6/06-16/06/06, 19/06/06-23/06/06, 26/06/06

JUDGMENT DATE : 14 July 2006

JURISDICTION : Equity Division Commercial List

JUDGMENT OF : Einstein J

DECISION : Parties held not to have entered into legally binding relations in relation to letter agreement. Damages award for breach of contract on roll out case.

CATCHWORDS : Contract - Claim for damages of $100,000,000 for breach of contract and for loss and damage occasioned by misleading and deceptive representations - Contract for provision of plaintiff to defendant's hospitals and health care facilities of food procurement, catering and associated eProcurement services - Whether parties entered into legally binding relations - Masters v Cameron issues - Certainty - Authority to bind corporation - Construction

LEGISLATION CITED : Evidence Act 1995 (NSW) Trade Practices Act 1974 (Cth)

ADC v White [1999] NSWSC 43 Allen v Carbone (1975) 132 CLR 528 Anaconda Nickel Ltd v Tarmoola Australia Pty Ltd (2000) 22 WAR 101 Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Australia China Business Bureau Pty Ltd v MCP Australia Pty Ltd [2003] FCA 934 Australian Granodiorite Limited v Devex Pty Limited (unreported, Supreme Court of New South Wales, Brownie J, 28 May 1991) Australian Workers Union New South Wales Branch v Minister for Natural Resources & Ors (1991) 26 ALD 461 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9147 Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Ltd v GR Securities Pty Ltd (1986) 40 NSWLR 622 Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61 Briginshaw v Briginshaw (1938) 60 CLR 336 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Commonwealth v Verwayen (1990) 170 CLR 394 Electricity Corporation of New Zealand Ltd v Fletcher Challenge Energy Ltd [2002] 2 NZLR 433 FAI Traders Insurance Co Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Geebung Investments Pty Ltd v Varga Group Investments (No 8) Pty Ltd (1995) 7 BPR 14,551 Hadid v Australis Media Limited (unreported, Supreme Court of New South Wales, J Sperling, 30 June 1997, BC 9707967) Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Houghton v Immer (No 155) Pty Ltd (1997) 44 NSWLR 46 Howard Smith & Co Ltd v Varawa (1907) 5 CLR 68 CASES CITED : Inland Revenue Commissioners v Raphael [1935] AC 96 Integrated Computer Services Pty Limited v Digital Equipment Corporation (Australia) Pty Limited (unreported, Supreme Court of New South Wales Court of Appeal, McHugh, Mahoney and Hope JJA, 23 December 1988 BC 8801158)) International Fina Services AG v Katrina Shipping Ltd ("The Fina Samco") [1995] 2 Lloyd's Rep 344 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 Kofi-Sunkersette Obu v A Strauss & Co Ltd [1951] AC 243 L Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235 Lakatoi Universal Pty Ltd & Walker [2000] NSWSC 113 Maggbury Pty Limited v Hafele Australia Pty Limited (2001) 210 CLR 181, (2001) 76 ALJR 246 Masters v Cameron (1954) 91 CLR 353 Meehan v Jones (1982) 149 CLR 571 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 67 ALJR 170 Optus Vision Pty Ltd v Australian Rugby Football League Ltd [2004] NSWCA 61 Pascoe v Commissioner of Taxation (Cth) (1956) 30 ALJ 402 Pedler v Richardson (unreported, Supreme Court of New South Wales, 16 October 1997, Young J, BC9705263) Peppers Hotel Management Pty Ltd v Hotel Capital Partners Ltd [2004] NSWCA 114 Pobije Agencies Pty Ltd v Vinidex Tubemakers Pty Ltd [2000] NSWCA 105 Prenn v Simmonds [1971] WLR 1381 Raguz v Sullivan (2000) 50 NSWLR 236 Reardon -Smith Line Ltd v Yngvar Hansen-Tangen [1976] 1 WLR 989 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 186 ALR 289 Ryan (Receiver & Manager of Homfray Carpets Australia Pty Ltd) v Textile Clothing & Footwear Union Australia [1996] 2 VR 235 Troulis v Vamvoukakis (unreported, Supreme Court of New South Wales Court of Appeal, Gleeson CJ, Mason P and Stein JA, 27 February 1998, BC 9800395) Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 Vodafone Pacific Ltd v Mobile Innovations Ltd [2004] NSWCA 15 Vroon BV v Foster's Brewing Group Ltd [1994] 2 VR 32 Watson v Foxman (2000) 49 NSWLR 315