HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: HP Mercantile Pty Ltd v Hartnett [2016] NSWCA 342 Hearing dates: 8 September 2016 Decision date: 08 December 2016 Before: Bathurst CJ at [1]; Leeming JA at [58]; Payne JA [186] Decision: The orders in respect of all respondents except the 39th respondent Mr Foletti are: 1. Appeal dismissed. 2. Appellant to pay the costs of the respondents as agreed or assessed. Catchwords: CONTRACT – construction and interpretation – agricultural investment scheme – suite of related contracts between investors, representative and manager – loan agreements to facilitate investment – construction of limited recourse provision

PRACTICE – facts agreed for purpose of separate question – where defendants reserved right to contend for different facts if question resolved unfavourably to them – whether appropriate to answer questions Legislation Cited: Bankruptcy Act 1966 (Cth), s 111 Income Tax Assessment Act 1936 (Cth) s 98, Part IV Supreme Court Act 1970 (NSW), s 101(2)(r) Taxation Administration Act 1953 (Cth), Sch 1 Subdiv 388-B Taxation Laws Amendment Act 1986 (Cth) Trustee Act 1925 (NSW), s 59(4) Cases Cited: Agusta Pty Ltd v Provident Capital Ltd [2012] NSWCA 26; (2012) 16 BPR 30,397 Atwells v Jackson Lalic Lawyers Pty Ltd [2016] HCA 16; (2016) 90 ALJR 572 Bass v Permanent Trustee Company Ltd (1999) 198 CLR 334; [1999] HCA 9 Beaufort Developments (NI) Ltd v Gilbert-Ash (NI) Ltd [1998] UKHL 19; [1999] 1 AC 266 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 Collector of Customs v Agfa-Gevaert Ltd (1996) 186 CLR 389 Director of Public Prosecutions (Cth) v JM (2013) 250 CLR 135; [2013] HCA 30 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Fitness First Australia Pty Ltd v Fenshaw Pty Ltd [2016] NSWCA 207 Gosling v McCombie (1972) 126 CLR 487 Guo Hui Cai v Ciao Yan Guo (No 2) [2014] NSWSC 1416 HP Mercantile Pty Ltd v Clements [2014] NSWSC 509 HP Mercantile Pty Ltd v Kym and Paul Clements [2015] NSWCA 212 International Air Transport Association v Ansett Australia Holdings Ltd (2008) 234 CLR 151; [2008] HCA 3 Life Insurance Company of Australia Ltd v Phillips (1925) 36 CLR 60 Lindsay (WN) & Co Ltd v European Grain & Shipping Agency Ltd [1963] 1 Lloyd's Rep 437 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 R (Evans) v Attorney General [2015] AC 1787; [2015] UKSC 21 R v Brown [1996] AC 543 R v Clowes (No 2) [1994] 2 All ER 316 Rainy Sky SA v Kookmin Bank [2011] UKSC 50; [2011] 1 WLR 2900 Re Sigma Finance Corp (in administrative receivership) [2009] UKSC 2; [2010] 1 All ER 571 Richmond v Moore Stephens Adelaide Pty Ltd [2015] SASCFC 147 Robbins v Federal Commissioner of Taxation (1974) 129 CLR 332 Shell UK Ltd v Total UK Ltd [2010] 3 All ER 793; [2010] EWCA Civ 180 Simic v New South Wales Land and Housing Corporation [2016] HCA 47 Thompson v Smith (1976) 135 CLR 102 Tyrrell v The Owners Corporation Strata Scheme 40022 [2007] NSWCA 8 Undershaft (No 1) Ltd v Commissioner of Taxation (2009) 175 FCR 150; [2009] FCA 41 Universal Music Australia Pty Ltd v Sharman Networks Ltd (2006) 150 FCR 110; [2006] FCAFC 41 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 Wardle v Agricultural and Rural Finance Pty Ltd [2012] NSWCA 107 Wasa International Insurance Co Ltd v Lexington Insurance Co [2010] AC 180 Wilkie v Gordian Runoff Ltd (2005) 221 CLR 522; [2005] HCA 17 Yarraburn Nominees v Alliance Engineering Pty Ltd [2010] NSWSC 1081 Zhu v Treasurer of the State of New South Wales (2004) 218 CLR 530; [2004] HCA 56 Texts Cited: Lord Grabiner "The iterative process of contractual interpretation" (2012) 128 Law Quarterly Review 41 Category: Principal judgment Parties: HP Mercantile Pty Limited (Appellant) Gerard Hartnett (Respondent) Gary Robert Wilson (Respondent) Attila Bodonyi (Respondent) Oliver Fonda (Respondent) Anthony William Andrew (Respondent) Ross Alexander Mars (Respondent) Frank Alexander Watkins (Respondent) Campbell Faulds (Respondent) John Luies (Respondent) Peter James Christie (Respondent) Bacroy Pty Limited Trading As John Jansen Family Trust (Respondent) Cathrine Lesley Stewart (Respondent) Robert Scolaro (Respondent) Stephen John Noblett (Defendant) Peter David Chapman (Respondent) Donald James Duncan (Respondent) Alastair Roderick Hood (Respondent) Nicholas Rossetti (Respondent) Gary Groth-Marnat (Respondent) Alexander Leslie Alan Holmes (Respondent) Simon Gregory Pritchard (Respondent) Mark Venables (Respondent) Ronald Anthony Baldini (Defendant) Ross Douglas Jose (Respondent) Alan John Bradshaw (Respondent) Helen Marie Creaser (Respondent) Keith Alexander Wallis (Respondent) Wayne James Spindler (Respondent) Richard William Sutton (Respondent) Antonio Bartuccio (Respondent) Robin Clifford James O'Neill (Respondent) Jean-Michel Dominique Seneque (Respondent) Guilbert John Percival (Respondent) Anthony Kubicki (Respondent) Gregory Plevey (Respondent) Thomas McIntyre (Respondent) Matthew Christopher Wenke (Respondent) Christopher Michailidis (Respondent) Michael Foletti (Respondent) John Fitzpatrick (Respondent) David George Gourley (Respondent) John Jeffreys (Respondent) Sharon Kell (Respondent) Heather Kelly (Respondent) John William Dunn (Respondent) Robert John Terry (Respondent) Ross Jeffrey Smith (Respondent) Paul William McDermott (Respondent) Jonathon Sidney Lowe (Respondent) Arthur Jones (Respondent) Sean Hogan (Respondent) Holly Bryant (Respondent) Audrey Chang (Respondent) Paul Burke (Respondent) Neville Vernon Deague (Respondent) Graham Ellender (Respondent) Paul Anthony McCluskie (Respondent) Laurence Mitchell (Respondent) Valentine Vargassoff (Respondent) Kevin Raymond Vaughan (Respondent) John Anthony Van De Ven (Respondent) Jeremy Dale Simpson (Respondent) Douglas Roach (Respondent) David Ralph (Respondent) Noel Edward Quick (Respondent) Randall Kenneth Perry (Respondent) Graham Ronald Paterson (Respondent) Roberta O'Sullivan (Respondent) John Michael Fisher (Respondent) Steven Doyle (Respondent) James Noel Brickwood (Respondent) Sigrid Birzer (Respondent) Robert Arthur Handley Bailey (Respondent) Shane Allard (Respondent) Gregory Raymond Smith (Respondent) Andrew Norris (Respondent) Russell John Hawkins (Respondent) Craig Randall Hawkins (Respondent) Brian Walter Gray (Respondent) Peter Michael Deed (Respondent) Alexander Rex Cameron (Respondent) Paul Benbow (Respondent) Edmund Lawrence Woods (Respondent) Joe Galante (Respondent) David John Gray (Respondent) Ralph Young (Respondent) Sean Patrick O'Donovan (Respondent) Representation: Counsel: B Walker SC, P Knowles (HPM) CRC Newlinds SC, A D'Arville (respondents represented by Jonathon Eastoe Lawyers and/or Tiernan Lawyers) A Leopold SC, E Holmes (respondents represented by Gandhi & Shaw)