Colyer Fehr Tallow Pty Ltd (ACN 001 849 869) v KNZ Australia Pty Ltd (ACN 003 169 293) [2011] NSWSC 457

Supreme Court New South Wales

Medium Neutral Citation: Colyer Fehr Tallow Pty Ltd (ACN 001 849 869) v KNZ Australia Pty Ltd (ACN 003 169 293) [2011] NSWSC 457 Hearing dates: 9 to 18 May 2011 and 1 July 2011 Decision date: 12 August 2011 Jurisdiction: Equity Division - Commercial List Before: Ball J Decision: The claim and cross-claim be dismissed. Catchwords: CONTRACT - construction - identifying contractual terms - informal agreements - implied terms - use of surrounding circumstances - use of conduct of parties - use of post-contractual conduct - can use course of dealing as relevant to ascertaining terms in informal contracts. CONTRACT - construction - informal agreements - implied term - reasonable notice - whether 2 weeks' notice reasonable - held sufficient. CONTRACT - termination - informal contract - breach of term that would not export - whether condition of contract - only intermediate term - breach insufficient to give rise to the right to terminate. EQUITY - fiduciary duties - agency - scope of fiduciary duty - whether conflict of interest involved breach of duties in this case - held not. DAMAGES - award of nominal damages for breach of contract - not appropriate in this case. TORT - intentional - conversion - no immediate right to possession - no contractual right to goods Cases Cited: Associated Alloys Pty Ltd v ACN 001 452 106 Pty Ltd (In Liq) [2000] HCA 25; 202 CLR 588 Baume v The Commonwealth (1906) 4 CLR 97 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; 117 FCR 424 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Carmichael v National Power plc [1999] 1 WLR 2042 Chappel v Hart (1998) 195 CLR 232 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 Crawford Fitting Co v Sydney Valve & Fittings Pty Ltd (1988) 14 NSWLR 438 Dodds v Premier Sports Australia Pty Ltd [2003] NSWSC 948 Foxeden Pty Ltd v IOOF Building Society Ltd [2003] VSC 356 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; 76 NSWLR 603 Hawkins v Clayton (1988) 164 CLR 539 at 573 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Jarvis v Williams [1955] 1 WLR 71 John Alexander's Clubs Pty Limited v White City Tennis Club Limited [2010] HCA 19; 241 CLR 1 Jones v Dunkel (1959) 101 CLR 298 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61; 233 CLR 115 Kelly v Cooper [1993] AC 205 Kirchner v Mayne Nickless Ltd [2000] VSC 459 Luna Park (NSW) Ltd v Tramways Advertising Pty Limited (1938) 61 CLR 286 Martin-Baker Aircraft Company Ltd v Canadian Flight Equipment Ltd [1955] 2 QB 556 Masterton Homes Pty Ltd v Palm Assets Pty Ltd [2009] NSWCA 234 Multi-core Aerators Ltd v Multi-core Aerators Pty Ltd (1997) 40 IPR 462 Pacific Products Pty Ltd v Howard [2005] SASC 290 Pilmer v Duke Group Ltd (in liq) [2001] HCA 31; 207 CLR 165 Re Galaxy Media Pty Ltd (in liq); Walker v Andrew [2001] NSWSC 917; 39 ACSR 483 The Software Link (Australia) Pty Ltd v Texada Software Inc [2005] FCA 1072 Thompson & Morgan (United Kingdom) Ltd v Erica Vale Australia Pty Ltd (1995) 31 IPR 335 Woolworths (SA) Pty Ltd v Basetone Pty Ltd [2006] SASC 225 Texts Cited: Prof P G Watts, Bowstead & Reynolds on Agency, 18th ed, 2006, Sweet & Maxwell RP Meagher, D Heydon and M Leeming, Meagher, Gummow and Lehane's Equity Doctrines and Remedies, 4th ed, 2002, Butterworths Category: Principal judgment Parties: Colyer Fehr Tallow Pty Ltd (ACN 001 849 869) (Plaintiff) KNZ Australia Pty Limited (ACN 003 169 293) (Defendant) Representation: D J Fagan SC (Plaintiff) J J Hutton (Plaintiff) I M Neil SC (Defendant) T Saunders (Defendant) Blake Dawson Waldron (Plaintiff) Allens Arthur Robinson (Defendant) File Number(s): 2010/89607