Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd; TWT Property Group Pty Limited v Cenric Group Pty Limited [2019] NSWCA 87

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd; TWT Property Group Pty Limited v Cenric Group Pty Limited [2019] NSWCA 87 Hearing dates: 5 March 2019 Date of orders: 30 April 2019 Decision date: 30 April 2019 Before: Meagher JA at [1]; Gleeson JA at [2]; McCallum JA at [179]. Decision: (1) Appeal dismissed with costs.

(2) Cross-appeal dismissed.

(3) The cross-appellant, TWT, pay the first cross-respondent, Cenric's, costs of the cross-appeal. Catchwords: APPEAL – contract – where parties entered into various contractual arrangements to undertake excavation works including harvesting natural sandstone – whether the primary judge erred in finding the parties formed a concluded agreement to vary the terms of the head contract and the sub-contract – where credit findings are challenged – importance of establishing a Fox v Percy type error

APPEAL – contract – whether the primary judge erred in finding the cross-appellant's show cause notice and termination of the head contract were invalid – effect of variation of the head contract – whether the primary judge erred in finding a breach of an implied term of good faith and reasonableness

APPEAL – contract – where parties entitled to share in royalties from sale of sandstone – whether the primary judge's construction of the term capping the contractor's share of the royalties was wrong Legislation Cited: Environmental Planning and Assessment Act 1979 (NSW), s 96 Uniform Civil Procedure Rules 2005 (NSW), r 42.1, Pt 51.36(2) Cases Cited: Adventure World Travel Pty Ltd v Newsom (2014) 86 NSWLR 515; [2014] NSWCA 174 Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349 Australian Broadcasting Corporation v Roman XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 Barrier Wharfs Ltd v W Scott Fell & Co Ltd (1908) 5 CLR 647 Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622 Beatty v Guggenheim Exploration Company (1919) 225 NY 380 B Seppelt & Sons Ltd v Commissioner for Main Roads (1975) 1 BPR 9,147 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Burger King Corp v Hungry Jack's Pty Ltd (2001) 69 NSWLR 558; [2001] NSWCA 187 Codelfa Constructions Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Esso Australia Resources Pty Ltd v Southern Pacific Petroleum NL [2005] VSCA 228 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9,251 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Garry Rodgers Motors (Aust) Pty Ltd v Subaru (Aust) Pty Ltd [1999] FCA 903; ATPR 41-703 GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd (2003) 128 FCR 1; [2003] FCA 50 G R Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 Hawcroft General Trading Co Pty Ltd v Hawcroft [2017] NSWCA 91 Howard Smith & Co Ltd v Varawa (1907) 5 CLR 68 Johnston v Brightstars Holding Company Pty Ltd [2014] NSWCA 150 Kuru v New South Wales (2008) 236 CLR 1; [2008] HCA 26 Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2010] NSWCA 268 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181; [2201] HCA 70 Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72 M W B Business Exchange Centres Ltd v Rock Advertising Ltd [2018] 2 WLR 1603 Overlook Management (BV) v Foxtel Management Pty Ltd [2002] NSWSC 17 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451; [2004] HCA 35 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Sagacious v Procurement Pty Ltd v Symbion Health Ltd [2008] NSWCA 149 Sinclair, Scott & Co v Naughton (1929) 43 CLR 310 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 615; [HCA] 52 Specialist Diagnostic Services Pty Ltd v Healthscope Ltd [2012] VSC 175 United Group Rail Services Ltd v Rail Corporation New South Wales (2009) 74 NSWLR 618; [2009] NSWCA 177 Category: Principal judgment Parties: Bundanoon's Appeal Bundanoon Sandstone Pty Ltd (Appellant) Cenric Group Pty Ltd (First Respondent) TWT Property Group Pty Ltd (Second Respondent)