Chelmer NZ Ltd v Financial & Energy Exchange Ltd [2019] NSWDC 23

District Court New South Wales

Medium Neutral Citation: Chelmer NZ Ltd v Financial & Energy Exchange Ltd [2019] NSWDC 23 Hearing dates: 24 – 27 July 2017, 10 – 11 August 2017, 25 August 2017, 11-13 December 2017, 19 April 2018, 15 May 2018. Written submissions: 8 March 2018 3 May 2018 and 20 December 2018 (Plaintiff/Cross Defendant); 7 April 2018, 16 December 2018 and 1 February 2019 (Defendant/Cross Claimant) Date of orders: 22 February 2019 Decision date: 22 February 2019 Jurisdiction: Civil Before: Hatzistergos DCJ Decision: See [654] Catchwords: CONTRACTS – Termination – Contract for financial service technology – products not delivered - whether contract was repudiated or terminated for cause – contractual interpretation – compensation

CONTRACTS - Breach of Contract – Construction of contract for financial service technology – standards of contractual duty – implied term to exercise care, skill and diligence – whether term had been breached

CONTRACTS – Misleading conduct under statute – misleading or deceptive conduct – whether a failure to disclose a monetary amount included in estimated hours of work amounted to such conduct – whether a representation as to expertise and employees' expertise amount to such conduct

TORTS – Negligence – financial services contract - duty to perform with reasonable skill and care – whether duty had been breached – liability for others' negligence

LIMITATION PERIODS – Limitation of particular actions – contracts, torts and misleading and deceptive conduct – accrual of cause of action and when time begins to run Legislation Cited: Civil Procedure Act 2005 (NSW) ss 100, 144 Evidence Act 1995 (NSW) s 69 Justice Legislation Amendment Act (No 3) 2018 Limitation Act 1969 (NSW) s 14(1)(b) Trade Practices Act 1974 (Cth) ss 51A, 52, 82 Cases Cited: Australian Competition and Consumer Commission v Pratt (No 3) [2009] FCA 407 Australian Securities & Investments Commission v Adler [2002] NSWSC 171 BodyCorp Repairs Pty Ltd v Holding Redlich [2018] VSCA 17 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Byrne v Australian Airlines Ltd (1995) 185 CLR 410; [1995] HCA 24 Cellarit Pty Ltd v Cawarah Holdings Pty Ltd [2018] NSWCA 213 Christie v Purves and 2 Ors [2007] NSWCA 182 Con Stan Industries v Norwich Winterthur Insurance (Australia) Ltd (1986) 160 CLR 226 Connor v Blacktown District Hospital [1971] 1 NSWLR 713 Demagogue v Ramensky (1992) 39 FCR 31 Dilosa v Latec Finance Pty Ltd (1966) 84 WN (Pt 1) (NSW) 557 D.R. Design (NSW) Pty Ltd v Grand City International Development Pty Ltd [2017] NSWSC 1778 Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599; [1999] HCA 15 Elayoubi v Zipser [2008] NSWCA 335 Fazio v Fazio [2012] WASCA 72 Foran v Wight (1989) 168 CLR 385 Hooker Corporation Ltd v The Commonwealth of Australia (1986) 82 FLR 321 In the Matter of Maiden Civil Pty Ltd [2012] NSWSC 1618 Iverson v Howen [2008] NSWSC 1246 Jones v Dunkell (1959) 101 CLR 298 Koompahtoo Local Aboriginal Land Council v Sandpine Pty Ltd (2007) 233 CLR 115 Kuligowski v Metrobus (2004) 220 CLR 363 Lake Cumbeline Pty Ltd & Ors v Effem Foods Pty Ltd (trading as Uncle Ben's of Australia) (Unreported 29 June 1995, Federal Court of Australia, Tamberlin J) Laurinda Pty Ltd v Capalaba Parks Shopping Centre Pty Ltd (1989) 166 CLR 623 Lumbers v W Cook Builders Pty Ltd (in liq) (2008) 232 CLR 635 Miller & Associates Insurance Broking v BMW Australia Finance [2010] HCA 31; (2010) 241 CLR 357 Neville v Lam (No 3) [2014] NSWSC 607 Nova 96.9 Pty Ltd v Natvia Pty Ltd [2018] NSWSC 1288 NTF Group Pty Ltd v PA Putney Finance Australia Pty Ltd [2017] NSWSC 1194 Nu v NSW Secretary of Family and Community Services (2017) 95 NSWLR 577; [2017] NSWCA 221 Parkdale Custom Built Furniture Pty Ld v Puxu Pty Ltd (1982) 149 CLR 191 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10 Protec Pacific Pty Ltd v Steuler Services [2014] VSCA 338 Protector Glass Industries Pty Ltd v Southern Cross Autoglass Pty Ltd [2015] NSWCA 16 Rhesa Shipping O SA v Edmunds [1985] 1 WLR 948; [1985] 2 All ER 712 SAS Realty Developments Pty Ltd v Kerr [2013] NSWCA 56, Sangha v Baxter (2009) 52 MVR 492 Southern Cross Autoglass Pty Ltd v Protector Glass Industries Pty Ltd [2014] NSWSC 261 SunWater Ltd v Drake Coal Pty Ltd [2016] QCA 255 Taouk v Assure (NSW) Pty Ltd [2017] NSWCA 227 Vasco Investments Ltd v Morgan Stanley Australia [2014] VSC 455 Wadgy Hanna & Associates Pty Ltd v National Library of Australia [2014] ACTCA 32 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Warner v Hung, in the matter of Bellpac Pty Limited (Receivers and Managers Appointed) (In Liquidation) (No 2) (2011) 297 ALR 56; [2011] FCA 1123 Texts Cited: GE Dal Pont, Law of Limitation (LexisNexis Butterworths, 2016) Colin Lockhart, The Law of Misleading or Deceptive Conduct (5th Ed, LexisNexis Butterworths, 2019) Category: Principal judgment Parties: Chelmer NZ Ltd (Plaintiff) Financial & Energy Exchange Ltd (Defendant) Financial & Energy Exchange Ltd (Cross Claimant) Chelmer NZ LTD (Cross defendant) Representation: Counsel: Mr M Klooster (Plaintiff/Cross Defendant) Mr P Afshar (Defendant/Cross Claimant)