INTERSTAR WHOLESALE FINANCE PTY LIMITED v INTEGRAL HOME LOANS PTY LIMITED [2008] NSWCA 310

Appeal Outcome: Special leave application granted by the High Court 1 May 2009

New South Wales Court of Appeal

CITATION: INTERSTAR WHOLESALE FINANCE PTY LIMITED v INTEGRAL HOME LOANS PTY LIMITED [2008] NSWCA 310

HEARING DATE(S): 24 June 2008

JUDGMENT DATE: 24 November 2008

JUDGMENT OF: Allsop P at 1; Giles JA at 163; Ipp JA at 164

1. Appeal allowed. 2. The declarations and orders made by the Court in paragraphs 3, 4, 5, 6 and 7 of the orders made on 3 July 2007 and entered on 4 July 2007 be set aside. DECISION: 3. The answers to the questions reserved for separate determination be recorded as: (1) No (2) No. 4. The respondents pay the appellants' costs. 5. Remit the proceedings to Brereton J for hearing of issues not determined by the appeal, including the costs of the separate hearing at first instance.

CATCHWORDS: PENALTY – whether contractual provision a penalty – whether forfeiture of accrued property - FORFEITURE – relation of forfeiture to imposition of penalty - CONSTRUCTION OF CONTRACTS – penalties

LEGISLATION CITED: Conveyancing Act 1919 (NSW) Law of Property Act 1925 (UK)

Alder v Moore [1961] 2 QB 57 AMEV Finance Ltd v Artes Studios Thoroughbreds Pty Limited (1989) 15 NSWLR 564 AMEV-UDC Finance Limited v Austin [1986] HCA 63; 162 CLR 170 Associated Distributors Ltd v Hall [1938] 2 KB 83 Bartercard Limited v Myallhurst Pty Limited [2000] QCA 445 Brickles v Snell [1916] 2 AC 599 Bridge v Campbell Discount Co Limited [1962] AC 600 Bysouth v Shire of Blackburn and Mitcham (No 2) [1928] VLR 562 Cadogan Estates Ltd v McMahon [2001] 1 AC 378 Chester & Cole v Wright (unreported, Court of Appeal of England and Wales, 1929) Clydebank Engineering and Shipbuilding Co Limited v Don Jose Ramos Yzquierdo y Castaneda [1905] AC 6 Cooden Engineering Co Ltd v Stanford [1952] 2 All ER 915 Cunning v Riddell 1990 CanLII 854 Della Imports Pty Limited v Birkenhead Investments Pty Limited (1987) NSW ConvR 55-358 Deputy Commissioner of Taxation of the Commonwealth of Australia v Advanced Communications Technologies (Australia) Pty Limited [2003] VSC 487 Doman Forest Products Ltd v GMAC Commercial Credit Corp 2007 BCCA 88; (2007) 29 BLR (4th) 1 Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 Elsey & Co Ltd v Hyde (unreported, King's Bench Division, 1926) Esanda Finance Corporation Ltd v Plessnig (1989) 166 CLR 131 Export Credits Guarantee Department v Universal Oil Products Co [1983] 2 All ER 205 CASES CITED: Farah Constructions Pty Limited v Say-Dee Pty Limited [2007] HCA 22; 230 CLR 89 Financings Ltd v Baldock [1963] 2 QB 104 Forestry Commission of New South Wales v Stefanetto [1976] HCA 3; 133 CLR 507 Gilbert-Ash (Northern) Ltd v Modern Engineering (Bristol) Ltd [1974] AC 689 Halliard Property Co Ltd v Jack Segal Ltd [1978] 1 WLR 377 Hardy v Martin (1783) 1 Cox 26; 29 ER 1046 IAC (Leasing) Ltd v Humphrey [1972] HCA 1; 126 CLR 131 Jobson v Johnson [1989] 1 All ER 621 Legione v Hateley [1983] HCA 11; 152 CLR 406 McDonald v Dennys Lascelles Ltd [1933] HCA 25; 48 CLR 457 Miliangos v George Frank (Textiles) Ltd [1976] AC 443 O'Dea v Allstates Leasing System (WA) Pty Limited [1983] HCA 3; 152 CLR 359 Philip Bernstein (Successors) Ltd v Lydiate Textiles (unreported, Court of Appeal of England and Wales, 1962) Proctor v Jetway Aviation Pty Limited [1984] 1 NSWLR 166 Ringrow Pty Limited v BP Australia Pty Ltd [2003] FCA 1297; 203 ALR 281 Ringrow Pty Limited v BP Australia Ltd [2004] FCAFC 206; 209 ALR 32 Ringrow Pty Limited v BP Australia Pty Limited [2005] HCA 71; 224 CLR 656 Robophone Facilities Ltd v Blank [1996] 1 WLR 1428 Steedman v Drinkle [1916] 1 AC 275 United Dominions Trust (Commercial) Limited v Ennis [1968] 1 QB 54 Wollondilly Shire Council v Picton Power Lines Pty Limited (1994) 33 NSWLR 551 WT Malouf Pty Limited v Brinds Ltd (1980) 52 FLR 442