Pavlovic v Universal Music Australia Pty Limited [2015] NSWCA 313

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Pavlovic v Universal Music Australia Pty Limited [2015] NSWCA 313 Hearing dates: 11 September 2015 Decision date: 06 October 2015 Before: Bathurst CJ at [1]; Beazley P at [24]; Meagher JA at [160] Decision: (1) Appeal allowed;

(2) Set aside declarations and orders made by the primary judge;

(3) Declare that no contract came into existence on 24 December 2014 between the appellants and the first and second respondent;

(4) Order the respondents to pay the appellants' costs of the appeal;

(5) Order the respondents to pay the costs of the appellants in the court below;

(6) Remit the matter to the Supreme Court for the determination of the remaining issues on the summons. Catchwords: CONTRACTS – whether binding agreement in existence – whether parties' intention was to be bound prior to signature and execution of agreement – relevance of subsequent conduct of parties – relevance of parties' previous dealings

AGENCY – whether solicitor had actual authority to bind client to a contract – whether clear and cogent evidence indicating authority to bind

AGENCY – whether solicitor had ostensible authority to bind client to a contract – whether agreement was in the context of litigation – whether potentially litigious dispute constituted in the context of litigation Cases Cited: Air Great Lakes Pty Ltd v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Baulkham Hills Private Hospital Pty Ltd v GR Securities Pty Ltd (1986) 40 NSWLR 622 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 CIC Insurance Ltd v Bankstown Football Club Ltd [1994] NSWCA 359; 8 ANZ Insurance Cases ¶61-232 Cleary v Masterton [1999] NSWSC 207 Eccles v Bryant & Pollock [1948] Ch 93 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 251 CLR 640 Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; 209 CLR 95 GR Securities v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Johnston v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 Kent v Hogarth [1995] QCA 472 Locnere Pty Ltd v Jakk's Bagel & Bread Co Pty Ltd [2003] NSWSC 1123 Lucke v Cleary (2011) 111 SASR 134 Masters v Cameron [1954] HCA 72; 91 CLR 353 Mushroom Composters Pty Ltd v IS & DE Robertson Pty Ltd [2015] NSWCA 1 Nguyen v Taylor (1992) 27 NSWLR 48 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Pianta v National Finance & Trustees [1964] HCA 61; 180 CLR 146 Quikfund (Australia) Pty Ltd v Prosperity Group International Pty Ltd (in liq) (2013) 209 FCR 368 Sagacious Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149 Stewart Upton Pty Ltd v Pindar (1990) NSW ConvR 55-529 Summit Properties Pty Ltd v Comserv (No 784) Pty Ltd (1981) 2 BPR 9173 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 Vroon BV v Foster's Brewing Group Ltd [1994] 2 VR 32 Waltons Stores (Interstate) Ltd v Maher [1988] HCA 7; 164 CLR 387 Category: Principal judgment Parties: Stephen Pavlovic (Appellant) Modularpeople Ltd (Second Appellant) Pavlovic Investments Pty Ltd (Third Appellant) Universal Music Australia Pty Ltd (First Respondent) Modular Recordings Pty Limited (Second Respondent) Angela Margaret Pavlovic (Third Respondent) Representation: Counsel: R Merkel QC; D Krochmalik (Appellants) R Lancaster SC (First Respondent) Submitting appearance (Second and Third Respondents)