Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2015] NSWCA 1

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2015] NSWCA 1 Hearing dates: 27 November 2014 Decision date: 05 February 2015 Before: Macfarlan JA at [1]; Gleeson JA at [2]; Sackville AJA at [3] Decision: 1. Appeal allowed in part.

2. Set aside Order 3 made by McDougall J on 12 May 2014.

3. Direct the parties to bring in agreed short minutes of order giving effect to this judgment within 14 days.

4. If the parties cannot agree on short minutes of order (including as to costs) direct that:

(a) the respondent (Robertson) file and serve its proposed short minutes of order together with brief written submissions in support within 14 days;

(b) the appellant (Composters) file and serve its proposed short minutes of order together with brief written submissions in support within a further 14 days. Catchwords: CONTRACT – agreement – parties entered into a supply and purchase arrangement – whether parties had agreed the essential term of price for the duration of the arrangement – whether price had been fixed subject to a price review mechanism and an obligation to negotiate in good faith

EVIDENCE – admissions – admissions of law and fact – whether an admission by a party to an alleged contract on a matter of law should be given any weight Legislation Cited: Civil Procedure Act 2005 (NSW) s 90 Trade Practices Act 1974 (Cth) s 52 Cases Cited: Australian Securities and Investments Commission v Fortescue Metals Group Ltd [2011] FCAFC 19; 190 FCR 364 Booker Industries Pty Ltd v Wilson Parking (Qld) Pty Ltd [1982] HCA 53; 149 CLR 600 Brambles Holdings Ltd v Bathurst City Council [2001] NSWCA 61; 53 NSWLR 153 British Steel Corp v Cleveland Bridge and Engineering Co Ltd [1984] 1 All ER 504 Coulton v Holcombe [1986] HCA 33; 162 CLR 1 Dovuro Pty Ltd v Wilkins [2003] HCA 51; 215 CLR 317 Eastern Express Pty Limited v General Newspapers Pty Limited (1992) 35 FCR 43 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 251 CLR 640 Forrest v Australian Securities and Investments Commission [2012] HCA 39; 247 CLR 486 G. Scammell and Nephew Ltd v H.C. and J.G. Ouston [1941] AC 251 Godecke v Kirwan [1973] HCA 38; 129 CLR 629 Grey v Australian Motorists & General Insurance Co [1976] 1 NSWLR 669 Johnston v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 Lym International Pty Ltd v Marcolongo [2011] NSWCA 303 May and Butcher Ltd v The King [1934] 2 KB 17 Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2014] NSWCA 231 Mushroom Composters v IS & DE Robertson Family Trust [2014] NSWSC 164 Mushroom Composters v Robertson (No 2) [2014] NSWSC 552 O'Brien v Dawson [1942] HCA 8; 66 CLR 18 Ormwave Pty Limited v Smith [2007] NSWCA 210 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Pitcher v Langford (1991) 23 NSWLR 142 Suttor v Gundowda [1950] HCA 35; 81 CLR 418 Taylor v Johnson [1983] HCA 5; 151 CLR 422 Toll (FGCT) Pty Limited v Alphapharm Pty Limited [2004] HCA 52; 219 CLR 165 Toyota Motor Corporation Australia Ltd v Ken Morgan Motors Pty Ltd [1994] 2 VR 106 United Group Rail Services Ltd v Rail Corporation New South Wales [2009] NSWCA 177; 74 NSWLR 618 Texts Cited: J W Carter, Carter on Contract (2014, LexisNexis) NC Seddon, RA Bigwood and MP Ellinghaus, Cheshire & Fifoot Law of Contract (10th Aust ed 2012, LexisNexis Butterworths) Category: Principal judgment Parties: Mushroom Composters Pty Ltd (Appellant) IS & DE Robertson Pty Ltd (Respondent) Representation: Counsel: B Walker SC / S Duggan (Appellant) BF Katekar / D Krochmalik (Respondent)