Cherry v Steele-Park [2017] NSWCA 295

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Cherry v Steele-Park [2017] NSWCA 295 Hearing dates: 8 September 2017 Decision date: 22 November 2017 Before: Gleeson JA at [1]; Leeming JA at [2]; White JA at [119] Decision: Appeal dismissed, with costs Catchwords: CONTRACTS – construction – evidence of surrounding circumstances – "true rule" in Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24 – no requirement of ambiguity before regard is had to surrounding circumstances – evidence of surrounding circumstances admissible but insufficient to displace width of contractual language

EVIDENCE – admissibility – distinction between admissibility and use – distinction between objection to documentary evidence on ground of relevance and limiting order under Evidence Act 1995 (NSW) s 136 – distinction between evidence of subjective intention and evidence of objective background facts

GUARANTEE – scope of guaranteed obligation – whether guaranteed obligation extended to vendors' loss of bargain following uncompleted contract for sale of land Legislation Cited: Corporations Act 2001 (Cth), s 127 District Court Act 1973 (NSW), s 134 Evidence Act 1995 (NSW), ss 9, 55, 77, 95, 97, 98, 136 Gaming Machine Control Act 1991 (Vic) Law Reform (Law and Equity) Act 1972 (NSW), s 7 Uniform Civil Procedure Rules 2005 (NSW), r 36.16 Cases Cited: 260 Oxford Street Pty Ltd v Premetis [2006] NSWCA 96 Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 218 CLR 570; [2008] HCA 57 Angas Securities Ltd v Small Business Consortium Lloyds Consortium No. 9056 [2016] NSWCA 182 Australian Broadcasting Commission v Australasian Performing Right Association Ltd (1973) 129 CLR 99 at 109; [1973] HCA 36 Australian Handsets Pty Ltd (In Creditor's Voluntary Liquidation) v Alvarez [2011] NSWSC 160 Australian Medic-Care Company Ltd v Hamilton Pharmaceutical Pty Ltd [2009] FCA 1220; 261 ALR 501 B & B Constructions (Aust) Pty Ltd v Brian A Cheeseman & Associates Pty Ltd (NSW Supreme Court, Young J, 31 August 1995, unreported BC9505386) Bank of Credit and Commerce International SA v Ali [2002] 1 AC 251; [2001] UKHL 8 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Boreland v Docker [2007] NSWCA 94 Calvo v Ellimark Pty Ltd [2016] NSWCA 136 Chartbrook Ltd v Persimmon Homes Ltd [2009] AC 1101; [2009] UKHL 38 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337; [1982] HCA 24 CSR Ltd v Adecco (Australia) Pty Ltd [2017] NSWCA 121 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd [2017] HCA 12; 91 ALJR 486 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 El-Haddad v R (2015) 88 NSWLR 93; [2015] NSWCCA 10 Fitness First Australia Pty Ltd v Fenshaw Pty Ltd (2016) 92 NSWLR 128; [2016] NSWCA 207 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 Gibbons Holdings Ltd v Wholesale Distributors Ltd [2008] 1 NZLR 277 International Air Transport Association v Ansett Australia Holdings Ltd (2008) 234 CLR 151; [2008] HCA 3 Kimberley Securities Limited v Esber [2008] NSWCA 301 Lahoud v Lahoud [2009] NSWSC 623 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 McDonalds v Dennys Lascelles Ltd (1933) 48 CLR 457; [1933] HCA 25 McGrath v Sturesteps; Sturesteps v HIH Overseas Holdings Ltd (in liq) (2011) 81 NSWLR 690; [2011] NSWCA 315 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Newey v Westpac Banking Corporation [2014] NSWCA 319 Pavlis v Wetherill Park Market Town Pty Ltd [2014] NSWCA 292 Phoenix Commercial Enterprises Pty Ltd v City of Canada Bay Council [2010] NSWCA 64 Photo Production Ltd v Securicor Transport Ltd [1980] AC 827 Prenn v Simonds [1971] 1 WLR 1381 Rava v Logan Wines Pty Ltd [2007] NSWCA 62 Reardon Smith Line Ltd v Hansen Tangen [1976] 3 All ER 570 Righi v Kissane Family Pty Ltd [2015] NSWCA 238 Ryledar Pty Ltd v Euphoric Pty Ltd (2007) 69 NSWLR 603; [2007] NSWCA 65 Seven Network Ltd v News Ltd (No 8) [2005] FCA 1348; (2005) 224 ALR 317 Simic v New South Wales Land and Housing Corporation [2016] HCA 47; (2016) 91 ALJR 108 Singh v De Castro; Dhaliwal v De Castro; Brar v De Castro [2017] NSWCA 241 Steak Plains Olive Farm Pty Ltd v Australian Executor Trustees Ltd [2015] NSWSC 289; (2015) 18 BPR 35,471 Steiner v Strang [2015] NSWCA 203 Stratton Finance Pty Ltd v Webb [2014] FCAFC 110; 314 ALR 166 Taouk v Assure (NSW) Pty Ltd [2017] NSWCA 227 Technomin Australia Pty Ltd v Xstrata Nickel Australasia Operations Pty Ltd (2014) 48 WAR 261; [2014] WASCA 164 The Queen v Khazaal (2012) 246 CLR 601; [2012] HCA 26 Tim Barr Pty Ltd v Narui Gold Coast Pty Ltd [2008] NSWSC 654 Todd v Alterra at Lloyds Ltd (2016) 239 FCR 12; [2016] FCAFC 15 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165; [2004] HCA 52 Vector Gas Ltd v Bay of Plenty Energy Ltd (2010) 2 NZLR 444; [2010] NZSC 5 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 WIN Corporation Pty Ltd v Nine Network Australia Pty Ltd [2016] NSWCA 297 Zhang v ROC Services (NSW) Pty Ltd; National Transport Insurance by its manager NTI Ltd v Zhang (2016) 93 NSWLR 561; [2016] NSWCA 370 Zhu v Treasurer of the State of New South Wales (2004) 218 CLR 530; [2004] HCA 56 Zickar v MGH Plastic Industries Pty Ltd (1996) 187 CLR 310; [1996] HCA 31 Texts Cited: R Calnan, Principles of Contractual Interpretation (Oxford University Press, 2nd ed 2017) K Lindgren, "The ambiguity of 'ambiguity' in the construction of contracts" (2014) 38 Aust Bar Rev 153. C Moustaka, "The Admissibility and Use of Evidence of Prior Negotiations in Modern Contract Interpretation" (2016) 41 UWALR 203. R McDougall "Construction of Contracts: The High Court's Approach" (paper delivered at the Commercial Law Association Judges' Series, 26 June 2015) D W McLauchlan, "Contract Interpretation: What is it about?" (2009) 31(1) SydLR 5 D W McLauchlan, "Objectivity in Contract" [2005] UQ Law JL 28; (2005) 24(2) UQLJ 479 D W McLauchlan, "Plain Meaning and Commercial Construction: Has Australia Adopted the ICS Principles?" (2009) 25 JCL 7 Donald Nicholls, "My kingdom for a horse: the meaning of words" (2005) 121 LQR 577 D Reynolds, "Construction of contracts after Mount Bruce Mining v Wright Prospecting" (2016) 90 ALJ 190 N Williams et al, Uniform Evidence in Australia (LexisNexis Butterworths 2015) Category: Principal judgment Parties: David Leon Cherry (First Appellant) Richard Sharpe (Second Appellant) Jock Gordon Steele-Park (Respondent) Representation: Counsel: D Krochmalik (Appellants) D Neggo (Respondent)