Downer Engineering Power Pty Ltd v P & H Minepro Australasia Pty Ltd [2007] NSWCA 318

New South Wales Court of Appeal

CITATION: Downer Engineering Power Pty Ltd v P & H Minepro Australasia Pty Ltd [2007] NSWCA 318

HEARING DATE(S): 04/09/2007

JUDGMENT DATE: 9 November 2007

JUDGMENT OF: Giles JA at 1; Basten JA at 2; Hoeben J at 22

DECISION: That the appeal be allowed and that the orders of the District Court of 13 March 2007 be set aside; In lieu thereof; Judgment for the plaintiff in the amount of $615,062.77, such judgment to take effect from 13 March 2007; Judgment for the cross-defendant on the defendant's cross-claim; Order the defendant to pay the plaintiff's costs of the proceedings on the ordinary basis to 3 August 2006 and thereafter on an indemnity basis; Order that the respondent repay the appellant the sum of $104,736.44 together with interest at the rate or rates prescribed pursuant to s101 of the Civil Procedure Act 2005 (NSW) from 5 April 2007; Order that the respondent pay the appellant's costs of the appeal.

CATCHWORDS: Contract - sale of business - adjustment of purchase price after completion - construction of clause relating to work in progress - provision for referral of disagreement to Valuer - whether dispute as to construction and operation of clause was itself a matter to be referred to the Valuer - effect of neither party referring disagreement to Valuer.

AGL Victoria Pty Ltd v SPI Networks (Gas) Pty Ltd [2006] VSCA 173 Goldspar Australia Pty Ltd v The Council of the City of Sydney [2001] NSWCA 246 Holt v Cox (1997) 23 ACSR 590; 15 ACLC 645 Legal & General Life of Australia Ltd v A Hudson Pty Ltd (1985) 1 NSWLR 314 M1 v L1 [2007] NSWSC 346 CASES CITED: Pacific Carriers Limited v BNP Paribas (2004) 218 CLR 451 at 462 Savcor Pty Limited v State of New South Wales (2001) 52 NSWLR 587 Straits Exploration (Australia) Pty Limited v Murchison United NL (2005) 31 WAR 187 Strang Patrick Stevedoring Pty Ltd v James Patrick & Co Pty Ltd (1993) 32 NSWLR 583 The Heart Research Institute Limited v Psiron Limited [2002] NSWSC 646 Toll (FGCT) Pty Limited v Alphapharm Pty Limited & Ors (2004) 219 CLR 165 at 179