Allcott Hire Pty Ltd v Silk [2016] NSWSC 1135

Supreme Court New South Wales

Medium Neutral Citation: Allcott Hire Pty Ltd v Silk [2016] NSWSC 1135 Hearing dates: 10 June 2016 Date of orders: 17 August 2016 Decision date: 17 August 2016 Jurisdiction: Common Law Before: Rothman J Decision: (1) To the extent necessary, leave to appeal be granted; (2) To the extent necessary, leave to raise the issue of the existence of an indemnity, as distinct from a guarantee, be granted; (3) Leave be granted to raise the issue relating to the lack of proof of the primary obligation; (4) Appeal allowed; (5) The judgment of the Local Court of 15 May 2015 in Allcott Hire Pty Limited v Silk be set aside; (6) The matter be remitted to the Local Court for it to deal with remaining issues between the parties, if any, not dealt with by this judgment; (7) The defendant to pay the plaintiff's costs of the appeal; (8) Costs of the proceedings in the Local Court be dealt with by the Local Court on remitter; (9) To the extent eligible, the defendant be granted a Certificate under s 6 of the Suitors Fund Act 1951 for the costs of these proceedings; (10) The parties have liberty to make application for any different or special order as to costs within seven days of the date of this judgment. Such application shall be in writing to the Associate of Justice Rothman with a submission of no more than three pages together with any documents upon which such submission may be based that are not otherwise before the Court. Any such application may be the subject of response by any other party affected by the application. Such response shall also be limited to three pages, together with any documents upon which the response is based that are not otherwise before the Court. Catchwords: APPEAL – question of law – construction of clause in commercial contract – principles of construction – ambiguity – decision below concluded no meaning to clause – appeal allowed; CONTRACT – guarantee or indemnity – strictissimi juris – principles of construction of surety contract – common sense, commercial construction – appeal allowed. Legislation Cited: Suitors Fund Act 1951 Cases Cited: Allcott Hire Pty Limited v Silk (District Court (NSW), Bradd LCM, 26 June 2015, unrep) Andar Transport Pty Ltd v Brambles Ltd [2004] HCA 28; (2004) 217 CLR 424 Anderson v Fitzgerald (1853) 4 HLC 484, (1853) 10 ER 551 Ankar Pty Ltd v National Westminster Finance (Australia) Ltd [1987] HCA 15; (1987) 162 CLR Associated Alloys v ACN 001 452 106 Pty Ltd [2000] HCA 25; (2000) 202 CLR 588 Atco Controls Pty Ltd (In Liq) v Newtronics Pty Ltd (Receivers and Managers Appointed) (In Liq) [2009] VSCA 238; (2009) 25 VR 411 Berghoff Trading Ltd v Swinbrook Developments Ltd [2009] EWCA Civ 413 Codelfa Construction Pty Ltd v State Rail Authority of NSW [1982] HCA 24; (1982) 149 CLR 337 Concut Pty Ltd v Worrell [2000] HCA 64; (2000) 75 ALJR 312 Cooper & Dysart Pty Ltd v Sargon [1991] 4 ACSR 649 Esso Petroleum Co. Ltd v Commissioners of Customs and Excise [1976] 1 All ER 117 Guardian Assurance Co Ltd v Condogianis [1919] HCA 33; (1919) 26 CLR 231 Hortico (Australia) Pty Ltd v Energy Equipment Co (Australia) Pty Ltd (1985) 1 NSWLR 545 Houssein v Under Secretary of Industrial Relations & Technology (NSW) [1982] HCA 2; (1982) 148 CLR 88 Hunter Douglas Australia Pty Ltd v Perma Blinds [1970] HCA 63; (1970) 122 CLR 49 Jennings Construction Ltd v QH & M Birt Pty Ltd (1986) 8 NSWLR 18 Jowitt v Callaghan (1938) 38 SR (NSW) 512 Lakeman v Mountstephen (1874) 7 App Cas 17 Marston v Charles H Griffith & Co Pty Ltd (1985) 3 NSWLR 294 McRae v Commonwealth Disposals Commission [1951] HCA 79; (1951) 84 CLR 377 Moschi v Lep Air Services Ltd; Lep Air Services Ltd v Rolloswin [1973] AC 331 Muller v Dalgety & Co Ltd [1909] HCA 67; (1909) 9 CLR 693 Nissho Iwai Australia Ltd v Malaysian International Shipping Corporation [1989] HCA 32; (1989) 167 CLR 219 Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 Provincial Insurance Australia Pty Ltd v Consolidated Wood Products Pty Ltd (1991) 25 NSWLR 541 Rose and Frank Co v JR Crompton & Bros Ltd [1923] 2 KB 261 Royal Botanic Gardens and Domain Trust v South Sydney City Council [2002] HCA 5; (2002) 186 ALR 289 Snook v. London & West Riding Investments Ltd [1967] 2 QB 786 St. Aubyn v Attorney-General [1952] A.C. 15 Stramit Industries Limited v Reinhardt [1985] 1 Qd R 562 Sunbird Plaza Pty Ltd v Maloney [1988] HCA 11; (1989) 166 CLR 245 The Mahkutai [1996] A.C. 650 Total Oil Products (Australia) Pty Ltd v Robinson (1970) 1 NSWR 701 Upper Hunter County District Council v Australian Chilling & Freezing Co Ltd [1968] HCA 8; (1968) 118 CLR 429 Texts Cited: JW Carter, The Construction of Commercial Contracts (2013, Oxford) R W Burchfield, The New Fowler's Modern English Usage (3rd ed, 1996, Oxford) Category: Principal judgment Parties: Allcott Hire Pty Ltd (Plaintiff) Thomas John Silk (Defendant) Representation: Counsel: C Alexander (Plaintiff) I G Roberts SC/J Malouf (Defendant)