Elkington v Farsands Solutions Pty Ltd [2012] NSWCA 334

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Elkington v Farsands Solutions Pty Ltd [2012] NSWCA 334 Hearing dates: 11 October 2012 Decision date: 17 October 2012 Before: Barrett JA (at [1]), Tobias AJA (at [46]) Decision: Summons seeking leave to appeal dismissed with costs [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: CORPORATIONS - options to subscribe for shares - action by option holder for breach of contract - alleged breach of implied term by which company promises that its decision makers will not include any person having obligations conflicting with those owed to the company - statement of claim dismissed as disclosing no reasonable cause of action - whether arguable that such term implied - held not - CONTRACTS - implied terms - terms implied by law in contracts of a particular class - contracts creating options to subscribe for shares Legislation Cited: Corporations Act 2001 (Cth), ss 236, 237 Uniform Civil Procedure Rules 2005, rule 13.4 Cases Cited: Bell v Lever Bros Ltd [1932] AC 161 Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; (1982) 149 CLR 337 Coulton v Holcombe [1986] HCA 33; (1986) 162 CLR 1 Fitzsimmons v R (1997) 23 ACSR 355 Forsayth Oil & Gas NL v Livia Pty Ltd (No 2) (1985) 59 ALJR 746 Foss v Harbottle (1843) Hare 461; 67 ER 189 Hirsch v Burns (1897) 77 LT 377 Johnson v Gore Wood and Co [2002] 2 AC 1 Liverpool City Council v Irwin [1977] AC 239 Modahl v British Athletic Federation Ltd [2002] 1 WLR 1192 O'Brien v Komesaroff [1982] HCA 33; (1982) 150 CLR 310 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 Quancorp Pty Ltd v Macdonald [1999] WASCA 33; (1999) 32 ACSR 50 Re MIA Group Ltd [2004] NSWSC 712; (2004) 50 ACSR 29 Suttor v Gundowda Pty Ltd [1950] HCA 35; (1950) 81 CLR 418 University of Wollongong v Metwally (No 2) [1985] HCA 28; (1985) 59 ALJR 481 Water Board v Moustakas [1988] HCA 12; (1988) 180 CLR 491 Category: Principal judgment Parties: Gordon Bradley Elkington - First Applicant Milly Elkington - Second Applicant Winpar Holdings Limited - Third Applicant John Warwick Cox - Fourth Applicant Ian Keith Gerke & Barbara Maria Gerke - Fifth Applicant Meggsies Pty Limited - Sixth Applicant Farsands Solutions Pty Limited - Respondent Representation: Dr C J Birch SC/Mr A Ahmad - Applicants Mr B A J Coles QC/Mr C N Bova - Respondent Lamrocks Solicitors - Applicants Baker & McKenzie - Respondent File Number(s): 2012/168665 Decision under appeal Date of Decision: 2012-05-01 00:00:00 Before: Curtis DCJ