Hawes v Dean [2014] NSWCA 380

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Hawes v Dean [2014] NSWCA 380 Hearing dates: 27 August 2014 Decision date: 07 November 2014 Before: Bathurst CJ at [1]; McColl JA at [6]; Barrett JA at [7] Decision: 1. Appeal allowed in part.

2. Set aside order (4) made in the Equity Division on 3 September 2013 and in lieu thereof make orders (4) and (4A) as follows:

"(4). Give judgment that the first cross-defendant David Richard Hawes and the second cross-defendant Glenside Group Pty Ltd pay the first cross-claimant Trevor Laurence Dean the sum of $357,188. (inclusive of interest to 14 August 2013), this judgment to take effect on 14 August 2013.

(4A) Give judgment that the second defendant Dean Investments Pty Ltd pay the second plaintiff Hawes Investments Pty Ltd the sum of $321,386.01 (inclusive of interest to 14 August 2013), this judgment to take effect on 14 August 2013."

3. Cross-appeal dismissed.

4. That the appellants pay two-thirds of the respondents' costs of the appeal.

5. That the respondents pay one-third of the appellants' costs of the appeal.

6. That the cross appellant pay the cross respondents' costs of the cross-appeal. Catchwords: CONTRACTS - general contractual principles - construction and interpretation of contracts - construing a commercial contract in its context - no matter of principle - PROCEDURE - set-off - equitable set-off - entitlement to money judgments established by one party against another party and by an associated entity of the second against an associated entity of the first - whether primary judge correctly allowed equitable set-off - need for one right to impeach the other - whether rights and their sources so closely connected that equitable set-off should be ordered - lack of mutuality and separateness of sources held to be such as not to permit set-off - COSTS - challenges to aspects of costs orders at first instance - no matter of principle Legislation Cited: Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Cases Cited: AF Concrete Pumping Pty Ltd v Ryan [2014] NSWCA 346 Bank of Boston Connecticut v European Grain and Shipping Ltd [1989] AC 1056 Bank of Tokyo Ltd v Karoon [1987] AC 45n Bim Kemi v Blackburn Chemicals Ltd [2001] 2 Lloyd's Rep 93 C G Maloney Pty Ltd v Noon [2011] NSWCA 397 Commonwealth Trading Bank of Australia v Sidney Raper Pty Ltd [1975] 2 NSWLR 227 Forsyth v Gibbs [2008] QCA 103; [2009] 1 Qd R 403 Geldof Metaalconstructie NV v Simon Carves Ltd [2010] EWCA Civ 667; [2010] 4 All ER 847 Hawes v Dean [2013] NSWSC 745 Hawes v Dean [2013] NSWSC 1246 Hill v Ziymack [1908] HCA 13; 7 CLR 352 International Air Transport Association v Ansett Australia Holdings Ltd [2008] HCA 3; 234 CLR 151 HP Mercantile Pty Ltd v Dierickx [2013] NSWCA 479 House v The King [1936] HCA 40; 55 CLR 499 James v Commonwealth Bank of Australia (1992) 37 FCR 445 J & S Holdings Pty Ltd v NRMA Insurance Ltd (1982) 41 ALR 539 Jireh International Pty Ltd v Western Export Services Inc [2011] NSWCA 137 Lord v Direct Acceptance Corporation Ltd (1993) 32 NSWLR 362 Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184 Murphy v Zamonex Pty Ltd (1993) 31 NSWLR 439 Norman; Re Forest Enterprises Ltd v FEA Plantation Ltd [2011] FCAFC 99; 195 FCR 97 Ozden v Commonwealth Bank of Australia [2014] VSCA 127 Perpetual Custodians Ltd v IOOF Investment Management Ltd [2013] NSWCA 231; 304 ALR 436 Rawson v Samuel (1841) Cr & Ph 161; 41 ER 451 Simpson v Lamb (1857) 7 E & B 84; 139 ER 1179 Walker v Department of Social Security (1995) 56 FCR 354 Woodside Energy Ltd v Electricity Generation Corporation (trading as Verve Energy) [2014 HCA 7; 188 ALJR 447 Texts Cited: R P Meagher, W M C Gummow and J R F Lehane, Equity Doctrines & Remedies (3rd ed 1992, Butterworths) R P Meagher, J D Heydon and M J Leeming, Meagher, Gummow and Lehane's Equity Doctrines and Remedies, (4th ed 2002, Butterworths LexisNexis). Category: Principal judgment Parties: David Richard Hawes (First Appellant) Hawes Investments Pty Ltd (Second Appellant) Glenside Group Pty Ltd (Third Appellant) Trevor Laurence Dean (First Respondent) T & B Dean Investments Pty Ltd (Second Respondent) Hawden Property Group Pty Ltd (Third Respondent) Hawden Constructions Pty Ltd (Fourth Respondent) Representation: Counsel: Mr G M McGrath (Appellant) Mr I M Jackman SC with Mr J E Lazarus (Respondent)