County Securities Pty Limited v Challenger Group Holdings Pty Limited & Anor [2008] NSWCA 193

New South Wales Court of Appeal

CITATION: County Securities Pty Limited v Challenger Group Holdings Pty Limited & Anor [2008] NSWCA 193

HEARING DATE(S): 18 February 2008

JUDGMENT DATE: 14 August 2008

JUDGMENT OF: Spigelman CJ at 1; Beazley JA at 64; McColl JA at 67

DECISION: 1. Appeal allowed. 2. Set aside orders made by Rolfe DCJ on 5 June 2007. 3. Verdict and judgment for the appellant in the amount of $338,639.84 and interest pursuant to s 100 of the Civil Procedure Act 2005 from 26 June 2003 to 3 July 2007 of $124,535.96 and interest thereafter of $92.78 a day. 4. Respondents to pay appellant's costs of the appeal and of the proceedings below.

CATCHWORDS: CONTRACT – formation of contract – informal contract for sale of equity swap business – whether term of contract that interest on margin loans was not being capitalised – whether agreement that sale would be at no loss to purchaser meant purchaser did not assume burden of paying interest capitalised on margin loan account – - CONTRACT – whether express or implied term that sale of equity swap business meant purchaser did not assume burden of paying interest capitalised on margin loan accounts – - CONTRACT – relevance of subsequent conduct to determination of terms of contract

Australian Securities and Investments Commission Act 2001 (Cth) LEGISLATION CITED: Civil Procedure Act 2005 Fair Trading Act 1987 Trade Practices Act 1974 (Cth)

CATEGORY: Principal judgment

Akot Pty Ltd v Rathmines Investments Pty Ltd [1984] 1 Qd R 302 Antaios Compania Naviera SA v Salen Rederierna AB [1985] AC 191 Australian Broadcasting Commission v Australasian Performing Right Association Ltd [1973] HCA 36; (1973) 129 CLR 99 Bank of New Zealand v Simpson [1900] AC 182 BP Refinery (Westernport) Pty Limited v Shire of Hastings [1977] HCA 40; (1977) 180 CLR 266 Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; (2001) 53 NSWLR 153 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; (2001) 117 FCR 424 Byrne & Frew v Australian Airlines Ltd (1994) 47 FCR 300 Byrne v Australian Airlines Limited [1995] HCA 24; (1995) 185 CLR 410 Carmichael v National Power Plc [1999] 1 WLR 2042 Codelfa Construction Pty Limited v State of Rail Authority of NSW [1982] HCA 24; (1982) 149 CLR 337 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2007] NSWDC 125 Deane v The City Bank of Sydney [1904] HCA 44; (1904) 2 CLR 198 Dovuro Pty Ltd v Wilkins [2003] HCA 51; (2003) 215 CLR 317 Eastern Express Pty Ltd v General Newspapers Pty Ltd (1992) 35 FCR 43 Equuscorp Pty Ltd v Glencallen Investments [2004] HCA 55; (2004) 218 CLR 471 Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; (2002) 209 CLR 95 Eslea Holdings Ltd v Butts (1986) 6 NSWLR 175 FAI Traders Insurance Company Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343 Ferguson v John Dawson & Partners (Contractors) Ltd [1976] 1 WLR 1213 Gordon-Cumming v Houldsworth [1910] AC 537 Grey v Australian Motorists & General Insurance Co Pty Ltd [1976] 1 NSWLR 669 CASES CITED: Hendriks v McGeoch [2008] NSWCA 53 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Hope v RCA Photophone of Australia Pty Ltd [1937] HCA 90; (1937) 59 CLR 348 Integrated Computer Services Pty Ltd v Digital Equipment Corp (Aust) Pty Ltd (1988) 5 BPR 11,110 International Air Transport Association v Ansett Australia Holdings Ltd [2008] HCA 3; (2008) 82 ALJR 419 Jones v Sutherland Shire Council [1979] 2 NSWLR 206 Liverpool City Council v Irwin [1977] AC 239 MacDonald v Longbottom (1859) 1 E & E 977; (1859) 120 ER 1177 Maggbury Pty Limited v Hafele Australia Pty Limited [2001] HCA 70; (2001) 210 CLR 181 McCann v Switzerland Insurance Australia Ltd [2000] HCA 65; (2000) 203 CLR 579 Mears v Safecar Security Ltd [1983] QB 54 Pacific Carriers Limited v BNP Paribas [2004] HCA 35; (2004) 218 CLR 451 Pethybridge v Stedikas Holdings Pty Ltd [2007] NSWCA 154; (2007) Aust Contract R 90-263 Pitcher v Langford (1991) 23 NSWLR 142 R W Cameron & Company v L Slutzkin Pty Ltd [1923] HCA 20; (1923) 23 CLR 81 Ryan v Textile Clothing and Footwear Union of Australia [1996] 2 VR 235 Sagacious Procurement Pty Ltd v Symbion Health Ltd (formerly Mayne Group Ltd) [2008] NSWCA 149 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; (2004) 219 CLR 165 Torbett v Faulkner [1952] 2 TLR 659 Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd [1968] HCA 8; (1968) 118 CLR 429 Vodafone Pacific Ltd v Mobile Innovations Ltd [2004] NSWCA 15 Wharf St Pty Ltd v Amstar Learning Pty Ltd [2004] QCA 256 White v Australian and New Zealand Theatres Ltd [1943] HCA 6; (1943) 67 CLR 266 Wilson v Maynard Shipbuilding Consultants [1978] QB 665