Hillam v Iacullo [2015] NSWCA 196

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Hillam v Iacullo [2015] NSWCA 196 Hearing dates: 10 June 2015 Decision date: 16 July 2015 Before: Basten JA at [1]; Ward JA at [2]; Leeming JA at [3] Decision: 1. Appeal allowed.

2. Set aside the orders made on 30 July 2014, and in lieu thereof, dismiss the proceedings.

3. Respondents to pay the appellant's costs at first instance and on appeal. Catchwords: CONTRACT - novation - successive written loan agreements between same parties - whether later agreement discharged parties' obligations under earlier agreement - no express rescission of earlier agreements - later agreements dealt with same subject matter and in different terms - context confirmatory - later agreement impliedly discharged earlier agreement

CONTRACT - breach - dependent and independent obligations - lenders promised to advance funds at particular date - borrower promised to provide security within a reasonable time - borrower promised to repay amounts lent plus interest plus uplift - contract not executed until after the time specified for the funds to be advanced - lenders refused to advance entirety of funds until security provided - relevance of oral stipulation that final amounts would not be advanced without security being provided - lenders in breach - whether borrower's obligation to pay uplift independent of lenders' obligation to advance entirety of funds - obligations dependent, not independent Legislation Cited: Contracts Review Act 1980 (NSW) Cases Cited: Aalders v PA Putney Finance Australia Pty Ltd [2011] NSWSC 756 ALH Group v Commissioner of State Revenue [2012] HCA 6; 245 CLR 338 Ample Source International Limited v Bonython Metals Group Pty Limited; In the Matter of Bonython Metals Group Pty Limited (No 6) [2011] FCA 1484; 285 ALR 488 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; 117 FCR 424 Brooks v Burns Philp Trustee Co Ltd (1969) 121 CLR 432 Burton v Palmer [1980] 2 NSWLR 878 Campbell v Jones (1796) 6 TR 570; 101 ER 708 Chief Commissioner of State Revenue v ALH Group Property Holdings Pty Ltd [2011] NSWCA 32; 15 BPR 29,297 Concut Pty Ltd v Worrell [2000] HCA 64; 75 ALJR 312 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 Federal Commissioner of Taxation v Sara Lee Household & Body Care (Australia) Pty Ltd [2000] HCA 35; 201 CLR 520 FHR European Ventures LLP v Cedar Capital Partners LLC [2014] UKSC 45; [2015] AC 250 Fightvision Pty Ltd v Onisforou [1999] NSWCA 323; 47 NSWLR 473 Gray t/as Clarence Valley Plumbing Services v Ware Building Pty Ltd [2013] NSWCA 271 Hillam v Ample Source International Limited (No 2) [2012] FCAFC 73; 202 FCR 336 Hillam v Leduva Pty Limited (No 3) [2011] NSWSC 345 Hoyt's Pty Ltd v Spencer (1919) 27 CLR 133 Lloyd v Lloyd (1837) 2 My & Cr 192; 40 ER 613 Masterton Homes Pty Ltd v Palm Assets Pty Ltd [2009] NSWCA 234; 261 ALR 382 McDonald v Dennys Lascelles Ltd (1933) 48 CLR 457 Morris v Baron & Co [1918] AC 1 Newcombe v Newcombe (1934) 34 SR (NSW) 446 Olsson v Dyson (1969) 120 CLR 365 Pordage v Cole (1669) 1 Saund 319; 85 ER 449 Reid v Moreland Timber Co Pty Ltd (1946) 73 CLR 1 Scarf v Jardine (1882) 7 App Cas 345 State Rail Authority (NSW) v Heath Outdoor Pty Ltd (1986) 7 NSWLR 170 Tallerman & Co Pty Ltd v Nathan's Merchandise (Victoria) Pty Ltd (1957) 98 CLR 93 Tito v Waddell (No 2) [1977] Ch 106 Vickery v Woods (1952) 85 CLR 336 Texts Cited: JW Carter, Carter on Contract (2014, LexisNexis) K Lewison, The Interpretation of Contracts (5th ed, 2011, Sweet & Maxwell) WS Holdsworth, A History of English Law (3rd ed, 1966, Methuen & Co and Sweet & Maxwell) Vol VIII S Stoljar, A History of Contract at Common Law (1975, Australian National University Press) S Stoljar, "Dependent and Independent Promises" (1957) 2 Sydney Law Review 217 Category: Principal judgment Parties: John Hillam (Appellant) Dominic Iacullo (First Respondent) Lillian Iacullo (Second Respondent) Representation: Counsel: M Jones SC, DE Perrignon (Appellant) DA Smallbone (Respondents)