Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd [2015] NSWSC 354

Supreme Court New South Wales

Medium Neutral Citation: Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd [2015] NSWSC 354 Hearing dates: 11 – 14 August 2014 Date of orders: 02 April 2015 Decision date: 02 April 2015 Jurisdiction: Equity Division Before: Robb J Decision: (1) Order that the plaintiff's claim be dismissed.

(2) Order the plaintiff to pay the defendants' costs of the proceedings.

(3) Order that the exhibits may be returned forthwith in accordance with the Rules Catchwords: CONTRACT – principles governing identification of parties to a contract – identification of parties to heads of agreement – principles governing whether heads of agreement are enforceable – circumstances in which the subsequent conduct of the parties may be taken into account to determine the context in which the contract was entered into – finding that heads of agreement constituted a binding contract – circumstances in which an implied obligation may exist upon the parties to negotiate the terms of formal contractual documents – principles governing termination of a contract for repudiation – conduct of one party capable of being a repudiation of the contract – significance of other party being in breach of the contract – other party also not ready and willing to perform the contract – termination of contract for repudiation not effective.

DAMAGES -- principles governing the assessment of damages for breach of heads of agreement – consideration of the difficulties involved in assessing the quantum of damages for breach of a heads of agreement where the parties have not finally agreed all of the terms of the formal documentation – need to make proper allowance for all contingencies Legislation Cited: Environmental Planning and Assessment Act 1979 (NSW) Cases Cited: Agricultural & Rural Finance Pty Ltd v Gardiner [2008] HCA 57; (2008) 238 CLR 570 Air Tahiti Nui Pty Ltd v McKenzie [2009] NSWCA 429; (2009) 77 NSWLR 299 Almond Investors Ltd v Kualitree Nursery Pty Ltd [2011] NSWCA 198 Australis Media Holdings Pty Ltd v Telstra Corporation Ltd (1998) 43 NSWLR 104 Brambles Holdings Pty Ltd v Bathurst City Council (2001) 53 NSWLR 153 Carpenter v McGrath (1996) 40 NSWLR 39 Carr v JA Berriman Pty Ltd (1953) 89 CLR 327 Centennial Coal Co Ltd v Xstrata Coal Pty Ltd [2009] NSWCA 341; (2009) 76 NSWLR 129 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640 Fenridge Pty Ltd v Retirement Care Australia (Preston) Pty Ltd [2013] VSC 464 Filadelfia Projects Pty Ltd v Entirity Business Services Pty Ltd [2011] NSWSC 116 Fishlock v Campaign Palace [2013] NSWSC 531 Franklins Pty Ltd v Metcash Trading Ltd [2009] NSWCA 407; (2009) 76 NSWLR G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Idameneo Pty Ltd v Ticco Pty Ltd [2004] NSWCA 329 Jireh International Pty Ltd v Western Exports Services Inc [2011] NSWCA 137 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61; (2007-2008) 233 CLR 115 Lahodiuk v Pace [2013] NSWSC 512 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623 Lederberger v Mediterranean Olives Financial Pty Ltd ; (2012) 38 VR 509 Mackay v Dick [1881] 6 App Cas 251 Mainteck Services Pty Ltd v Stein Heurtey SA [2014] NSWCA 184; (2014) 310 ALR 113 Perini Corporation v The Commonwealth [1969] 2 NSWR 530 Pethybridge v Stedikas Holdings Pty Ltd [2007] NSWCA 154 Plumore Pty Ltd v Handley (1996) 41 NSWLR 30 QBE Ensure its Australia Ltd v Vasic [2010] NSWCA 166 Ruthol Pty Ltd v Tricon Australia Pty Ltd [2005] NSWCA 443 Sagacious Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149 Southern Cross Autoglass Pty Ltd v Protector Glass Industries Pty Ltd [2014] NSWSC 261 Stratton Finance Pty Ltd v Webb [2014] FCAFC 110 Tasman Capital Pty Ltd v Sinclair [2008] NSWCA 248; (2008-2010) 75 NSWLR 1 Tatts Group Ltd v The State of Victoria [2014] VSC 302 Tomko v Palasty [2007] NSWCA 25 United Group Rail Services Ltd v Rail Corporation New South Wales [2009] NSWCA 177; (2009) 74 NSWLR 618 Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 Texts Cited: J W Carter, Carter on Contract, (2001) Category: Principal judgment Parties: Harold R Finger & Co Pty Ltd (plaintiff) Karellas Investments Pty Ltd (first defendant) Karellas Group Pty Ltd (second defendant) Representation: Counsel: DH Murr SC/J Horowitz (plaintiff) CR Newlinds SC/D Barnett (first and second defendants)