Prospect Resources Ltd v Molyneux [2015] NSWCA 171

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Prospect Resources Ltd v Molyneux [2015] NSWCA 171 Hearing dates: 22 May 2015 Date of orders: 25 June 2015 Decision date: 25 June 2015 Before: Beazley P at [1]; Ward JA at [2]; Leeming JA at [101] Decision: 1. The appeal is dismissed with costs. Catchwords: CONTRACTS – interpretation – share subscription agreement – whether parties to a separate prospecting agreement "waived" conditions precedent to that agreement – whether issuer under subscription agreement "reasonably satisfied" the other parties thereto that conditions precedent to the prospecting agreement had been "waived"

WORDS AND PHRASES – "waived" – "waiver" – whether expression of understanding that conditions were satisfied constituted a waiver of those conditions

COSTS – appeal from order for indemnity costs – Calderbank letter – offer characterised by appellant as derisory and inviting capitulation – whether error in exercise of costs discretion Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Agricultural and Rural Finance Pty Ltd v Gardiner [2008] HCA 57; (2008) 238 CLR 570 Cat Media Pty Ltd v Allianz Australia Insurance Ltd [2006] NSWSC 790 Commonwealth v Verwayen [1990] HCA 39; (1990) 170 CLR 394 Craine v The Colonial Mutual Fire Insurance Company Limited [1920] HCA 64; (1920) 28 CLR 305 Doe d. Nash v Birch (1836) 1 M. & W. 402 Earl of Darnley v Proprietors & c. of London, Chatham and Dover Railway [1867] LR 2 HL 43 Gange v Sullivan [1966] HCA 55; (1966) 116 CLR 418 Hancock v Arnold; Dodd v Arnold (No 2) [2009] NSWCA 19 House v The King [1936] HCA 40; (1936) 55 CLR 499 Leach v The Nominal Defendant (QBE Insurance (Australia) Ltd) (No 2) [2014] NSWCA 391 Leichhardt Municipal Council v Green [2004] NSWCA 341 Mannai Investments v Eagle Star [1997] AC 749 Matthews v Smallwood [1910] 1 Ch 777 Pennant's Case 2 Co. 171 Perri v Coolangatta Investment Pty Ltd [1982] HCA 29; (1982) 149 CLR 537 Perry v Davis [1858] 3 C.B. (N.S.) 769 Prospect Resources v Molyneux [2014] NSWSC 1096 Prospect Resources v Molyneux (No 2) [2014] NSWSC 1448 Regency Media Pty Ltd v AAV Australia Pty Ltd [2009] NSWCA 386 Robb Evans & Associates v European Bank Ltd (No 2) [2009] NSWCA 170 Category: Principal judgment Parties: Prospect Resources Limited (Appellant) Alexander Molyneux (First Respondent) Blumont Group Limited (Second Respondent) Pacific Advisers Pte Limited (Third Respondent) Representation: Counsel: JC Giles with Ms H Mann (Appellant) AC Willinge (Respondents)