Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd [2016] NSWCA 123

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd [2016] NSWCA 123 Hearing dates: 15 and 16 February 2016 Decision date: 25 May 2016 Before: McColl JA at [1]; Ward JA at [2]; Emmett AJA [285] Decision: Appeal dismissed with costs. Catchwords: CONTRACTS – whether acceptance of letter of offer to enter into agreement to lease and lease gave rise to binding contract – proper characterisation of agreement where several terms to be included in agreement for lease and lease remained to be agreed – whether letter refusing to proceed with contract "on current proposed terms" amounted to repudiation – whether right to terminate for repudiation lost where party alleging repudiation refused to continue to negotiate agreement for lease/lease documents – whether performance of that obligation had been dispensed with – whether party alleging repudiation was itself in breach of an essential term of the contract

DAMAGES – avoided loss – benefit derived from termination of agreement – whether benefit sufficiently close to claimed head of damages as to be appropriate to set off against it Cases Cited: Andros Springs (Owners) v World Beauty (Owners) (1970) P 144 British Westinghouse Electric and Manufacturing Co Ltd v Underground Electric Railways Co of London Ltd [1912] AC 673 Cardno BSD Pty Ltd v Water Corporation (No 2) [2011] WASCA 161 Carpenter v McGrath (1996) 40 NSWLR 39 Clark v Macourt [2013] HCA 56; (2013) 253 CLR 1 Codelfa Construction Pty Ltd v State Rail Authority (NSW) [1982] HCA 24; (1982) 149 CLR 337 Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54; (1991) 174 CLR 64 Condos v Clycut Pty Ltd [2009] NSWCA 200 Coulton v Holcombe [1986] HCA 33; (1986) 162 CLR 1 DTR Nominees Pty Ltd v Mona Homes Pty Ltd [1978] HCA 12; (1978) 138 CLR 423 Foran v Wight [1989] HCA 51; (1989) 168 CLR 385 Goldburg v Shell Oil Co of Australia Ltd (1990) 95 ALR 711 GR Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Gumland Property Holdings Pty Ltd v Duffy Bros Fruit Market (Campbelltown) Pty Ltd [2008] HCA 10; (2008) 234 CLR 237 Harold R Finger & Co Pty Ltd v Karellas Investments Pty Ltd [2015] NSWSC 354 Helmos Enterprises Pty Ltd v Jaylor Pty Ltd [2005] NSWCA 235 Hi-Fert Pty Ltd v Kiukiang Maritime Carriers Inc [2000] FCA 660; (2000) 173 ALR 263 Hoad v Scone Motors Pty Ltd [1977] 1 NSWLR 88 Karacominakis v Big Country Developments Pty Ltd [2000] NSWCA 313 Koch Marine Inc v D'Amica Societa di Navigazione ARL (The Elena d'Amico) (1980) 1 Ll L R 75 Kuru v State of New South Wales [2008] HCA 26; (2008) 236 CLR 1 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd [1989] HCA 23; (1989) 166 CLR 623 Lavarack v Woods of Colchester Ltd [1967] 1 QB 278 Luxton v Vines [1952] HCA 19; (1952) 85 CLR 352 Macourt v Clark [2012] NSWCA 367 Masters v Cameron [1954] HCA 72; (1954) 91 CLR 353 Monroe Schneider Associates (Inc) v No 1 Raberem Pty Ltd (1991) 33 FCR 1 Naumann v Ford [1985] 2 EGLR 70 Perini Corporation v The Commonwealth [1969] 2 NSWR 530 Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd [1954] HCA 25; (1954) 90 CLR 235 Robinson v Harman (1848) 1 Ex 850 at 855; 154 ER 363 Ross T Smyth & Co Ltd v T D Bailey Son & Co [1940] 3 All ER 60 Ruthol Pty Ltd v Tricon (Australia) Pty Ltd [2005] NSWCA 443 Sagacious Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149 Sargent v ASL Developments Ltd [1974] HCA 40; (1974) 131 CLR 634 Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; (2000) 200 CLR 121 Shepherd v Felt and Textiles of Australia Ltd [1931] HCA 21; (1931) 45 CLR 359 Shevill v Builders Licensing Board [1982] HCA 47; (1982) 149 CLR 620 Simonius Vischer & Co v Holt & Thompson [1979] 2 NSWLR 322 Sunbird Plaza Pty Ltd v Maloney [1988] HCA 11; (1988) 166 CLR 245 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd [2009] HCA 8; (2009) 236 CLR 272 Tasman Capital Pty Ltd v Sinclair [2008] NSWCA 248; (2008) 75 NSWLR 1 Tyco Australia Pty Ltd v Optus Networks Pty Ltd [2004] NSWCA 333 United Group Rail Services Ltd v Rail Corporation New South Wales [2009] NSWCA 177; (2009) 74 NSWLR 618 Violi v Commonwealth Bank of Australia [2015] NSWCA 152 Watpac Construction NSW Pty Ltd v Taylor Thompson Whitting (NSW) Pty Ltd [2015] NSWSC 780 Wenham v Ella [1972] HCA 43; (1972) 127 CLR 454 Woodar Investment Development Ltd v Wimpey Construction UK Ltd [1980] 1 WLR 277 Texts Cited: A Burrows, Remedies for Torts and Breach of Contract (3rd ed, 2004, Oxford University Press) H McGregor, McGregor on Damages (18th ed, 2009, Sweet & Maxwell) W Covell, K Lupton and J Forder, Principles of Remedies (6th ed, 2015, LexisNexis) Category: Principal judgment Parties: Harold R Finger & Co Pty Ltd (Appellant) Karellas Investments Pty Ltd (First Respondent) Karellas Group Pty Ltd (Second Respondent) Representation: Counsel: MLD Einfeld QC with J Horowitz (Appellant) CRC Newlinds SC with DJ Barnett (Respondents)