FBHS (Aust) Pty Ltd v Stone Homes Pty Ltd [2014] NSWCA 312

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: FBHS (Aust) Pty Ltd v Stone Homes Pty Ltd [2014] NSWCA 312 Hearing dates: 21 August 2014 Decision date: 10 September 2014 Before: Barrett JA at [1]; Gleeson JA at [2]; Leeming JA at [3] Decision: 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: APPEAL - whether appellate deference given to construction given by primary judge - Galcif Pty Ltd v Dudley's Corner Pty Ltd (1995) 6 BPR 14,134 explained

CONTRACT - construction - covenant in restraint of trade - meaning of prohibition on engaging in "similar" concept - reliance on text and purpose and object of transaction - distinction between sale of business agreement and distributor agreement - construction of contract as a whole - whether clause breached

PRACTICE - refusal of amendment late in the hearing - no error shown Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56-60, 64 Cases Cited: Branir v Owston Nominees (No 2) [2001] FCA 1833; 117 FCR 424 Carmichael v National Power Plc [1999] UKHL 47; [1999] 1 WLR 2042 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 Corporation of the City of Enfield v Development Assessment Corporation [2000] HCA 5; 199 CLR 135 Daily Examiner Pty Ltd v Mundine [2012] NSWCA 195 DSG Holdings Australia Pty Ltd v Helenic Pty Ltd [2014] NSWCA 96 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 88 ALJR 447 Foley v Ellis [2008] NSWCA 288 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; 76 NSWLR 603 Galcif Pty Ltd v Dudley's Corner Pty Ltd (1995) 6 BPR 14,134 Hannaford v Commonwealth Bank of Australia [2014] NSWCA 297 House v The King (1936) 55 CLR 499 KA & C Smith Pty Ltd v Ward (1998) 45 NSWLR 702 Kelly v Mina [2014] NSWCA 9 Life Insurance Co of Australia Ltd v Phillips (1925) 36 CLR 60 Marshall v NM Financial Management Pty Ltd [1995] 4 All ER 785 North v Marina [2003] NSWSC 64 Richards v Cornford (No 3) [2010] NSWCA 134 Smalley v Motor Accident Authority of New South Wales [2013] NSWCA 318; 85 NSWLR 580 Warren v Coombes (1979) 142 CLR 531 Texts Cited: J D Heydon, The Restraint of Trade Doctrine (LexisNexis, 3rd ed, 2008) Category: Principal judgment Parties: FBHS (Aust) Pty Ltd (First Appellant) Stramit Corporation Pty Limited (Second Appellant) Stone Homes Pty Ltd (First Respondent) Dennis Malcolm McFadden (Second Respondent) Gai Ann McFadden (Third Respondent) Best Sheds Pty Ltd (Fourth Respondent) Representation: Counsel: A Moses SC with J McLeod (Appellants) G A Sirtes SC with S Gray (Respondents) Solicitors: HWL Ebsworth Lawyers (Appellants) GHS Legal Lawyers (Respondents) File Number(s): 2014/123737 Decision under appeal Citation: [2014] NSWSC 370 Date of Decision: 2014-04-01 00:00:00 Before: Stevenson J File Number(s): 2012/365061