Newey v Westpac Banking Corporation [2014] NSWCA 319

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Newey v Westpac Banking Corporation [2014] NSWCA 319 Hearing dates: 21 May 2014 Decision date: 11 September 2014 Before: Basten JA at [1]; Meagher JA at [23]; Gleeson JA at [33] Decision: (1) To the extent necessary, grant leave to appeal and grant leave to cross-appeal. (2) Appeal allowed. (3) Cross-appeal dismissed. (4) Set aside the declarations and orders made by the primary judge on 5 July 2013. (5) In lieu thereof, order that the proceedings be dismissed and the plaintiff pay the defendants' costs. (6) Respondent to pay the appellants' costs in this Court. [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: CONTRACT - Interpretation - Restraint Clause - Identification of ambiguity not a precondition to examining legitimate surrounding circumstances - Scope of surrounding circumstances to be understood by reference to what the parties knew in the context of their mutual dealings - Whether surrounding circumstances revealed absurdity or inconsistency in a literal construction of the deed EQUITY - Remedies and Procedure - Mistake - Rectification - Mistake as to effect - Whether there is clear and convincing proof of a common intention between the parties - Requirement that the common intention be consensual and expressly manifested by words or conduct Legislation Cited: Corporations Act 2001 (Cth) ss 50, 413(1)(d) Financial Sector (Business Transfer and Group Restructure) Act 1999 (Cth), ss 18, 22(1)(c) Supreme Court Act 1970 (NSW) s 101(2)(r) Uniform Civil Procedure Rules 2005 (NSW) r 51.22 Cases Cited: Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 Australasian Performing Right Association Ltd v Austarama Television Pty Ltd [1972] 2 NSWLR 467 BHP Petroleum (Australia) Pty Ltd v Sagasco South East Inc [2001] WASCA 159 Biogen Inc v Medeva plc [1996] UKHL 18; [1997] RPC 1 Bishopgate Insurance Australia Ltd v Commonwealth Engineering (NSW) [1981] 1 NSWLR 429 Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38; [2009] 1 AC 1101; [2009] 4 All ER 677 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales [1982] HCA 24; 149 CLR 337 Commissioner of Stamp Duties (NSW) v Carlenka Pty Ltd (1995) 41 NSWLR 329 Commonwealth Financial Planning Ltd v Couper [2013] NSWCA 444 Davis v Veigel [2011] NSWCA 170 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7 Equuscorp Pty Ltd v Glengallan Investments Pty Ltd [2004] HCA 55; 218 CLR 471 Fitzgerald v Masters [1956] HCA 53; 95 CLR 420 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; 76 NSWLR 603 Fox v Percy [2003] HCA 22; 214 CLR 118 Halford v Price [1960] HCA 38; 105 CLR 23 International Air Transport Association v Ansett Australia Holdings Ltd [2008] HCA 3; (2008) 234 CLR 151 Jireh International Pty Ltd v Western Exports Services Inc [2011] NSWCA 137 Kooee Communications Pty Ltd v Primus Telecommunications Pty Ltd [2008] NSWCA 5 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; 210 CLR 181 Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184 Manufacturers Mutual Insurance Ltd v Withers (1988) 5 ANZ Ins Cas 60-853 Maralinga Pty Ltd v Major Enterprises Pty Ltd [1973] HCA 23; 128 CLR 336 McGrath v Sturesteps; Sturesteps v HIH Overseas Holdings Ltd (in liq) [2011] NSWCA 315; 81 NSWLR 690 NSW Medical Defence Union Ltd v Transport Industries Insurance Co Ltd (1986) 6 NSWLR 740 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Park v Brothers [2005] HCA 73; (2005) 80 ALJR 317 Perpetual Custodians Ltd as Custodian for Tamoran Pty Ltd as trustee for Michael Crivelli v IOOF Investment Management Ltd [2013] NSWCA 231 Pukallus v Cameron [1982] HCA 63; 180 CLR 447 QBE Insurance Australia Ltd v Vasic [2010] NSWCA 166 Re St George Bank Ltd (No 2) [2008] FCA 1850 Re George Bank Ltd [2010] FCA 148 Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 Royal Botanic Garden and Domain Trust v South Sydney Council [2002] HCA 5; 240 CLR 45 Ryledar Pty Ltd v Euphoric Pty Ltd [2007] NSWCA 65; 69 NSWLR 603 Shimokawa v Lewis [2009] NSWCA 266 Stratton Finance Pty Ltd v Webb [2014] FCAFC 110 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165 Trawl Industries of Australia Pty Ltd v Effem Foods Pty Ltd (1992) 27 NSWLR 326 United Group Rail Services Ltd v Rail Corp (NSW) [2009] NSWCA 177; 74 NSWLR 618 Western Export Services Inc v Jireh International Pty Ltd [2011] HCA 45; 86 ALJR 1 Westpac Banking Corporation v Newey [2013] NSWSC 847 Wilkie v Gordian Runoff Ltd [2005] HCA 17; 221 CLR 522 Wyllie v Tarrison Pty Ltd [2007] NSWCA 184 Xu v Jinhong Design & Constructions Pty Ltd [2011] NSWCA 277 Texts Cited: JW Carter, E Peden, and GJ Tolhurst, Contract Law in Australia (5th ed 2007, LexisNexis Butterworths) K Lewison and D Hughes, The Interpretation of Contracts in Australia (2012, Lawbook Co) Category: Principal judgment Parties: David Thomas Newey (First Appellant) David Eric Collinge (Second Appellant) Michael Gillis (Third Appellant) Michael Hayter (Fourth Appellant) Marcus McCarthy (Fifth Appellant) Nicholas Dale (Sixth Appellant) Amanda Bond (Seventh Appellant) John Hall (Eighth Appellant) Raymond Perkes (Ninth Appellant) Alan Brown (Tenth Appellant) Westpac Banking Corporation (Respondent) Representation: Counsel: D F Jackson QC with J S Emmett (Appellants) I M Jackman SC with T Prince (Respondent) Solicitors: Gillis Delaney Lawyers (Appellants) Allens (Respondent) File Number(s): 2013/228036 Decision under appeal Citation: Westpac Banking Corporation v Newey & Ors [2013] NSWSC 847 Date of Decision: 2013-07-05 00:00:00 Before: Pembroke J File Number(s): 2013/118661