Tibbles v Ulladulla Creative Images Pty Ltd (No 1) [2021] NSWDC 404

Tibbles v Ulladulla Creative Images Pty Ltd (No 1) [2021] NSWDC 404

In the circumstances known to the parties, including the discussion at the 14 February 2017 meeting and the objective context that UCI was pursuing further recovery for losses caused by the fire, cl 15.2 was apt to include the $380,000 received by UCI on 20 December 2018 as uninsured losses. The first defendant, as the promising party under cl 15.2, breached the contract by failing to divide the further moneys equally between the four shareholders. The second defendant was not personally liable because the moneys were paid to UCI and the promise in cl 15.2 was made by the company, not by him personally.

Jurisdiction
Australia
Judgment Date
02 June 2021
Procedural Posture
Civil Action for Damages for Breach of Contract / Principal Judgment After Hearing
Outcome
Judgment for each plaintiff against the first defendant; judgment for the second defendant against the plaintiffs.
Legal Topics
['interpretation of Contractual Terms' 'insurance Claim Proceeds' 'breach of Contract' 'separate Corporate Personality']
['contract Law'] ['interpretation of Contractual Terms' 'insurance Claim Proceeds' 'breach of Contract' 'separate Corporate Personality']

Case Brief

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Procedural Posture

Civil Action for Damages for Breach of Contract / Principal Judgment After Hearing

Legal Issues

  1. 1 ['Whether cl 15.2 of the 14 February 2017 contract applied to the $380,000 received by Ulladulla Creative Images Pty Ltd as uninsured losses paid by the insurer of a putative tortfeasor.' 'Whether the plaintiffs were entitled to judgment against the first defendant for their shares of further moneys received from QBE.' 'Whether the second defendant was personally liable under cl 15.2 of the contract.']

Ratio Decidendi

In the circumstances known to the parties, including the discussion at the 14 February 2017 meeting and the objective context that UCI was pursuing further recovery for losses caused by the fire, cl 15.2 was apt to include the $380,000 received by UCI on 20 December 2018 as uninsured losses. The first defendant, as the promising party under cl 15.2, breached the contract by failing to divide the further moneys equally between the four shareholders. The second defendant was not personally liable because the moneys were paid to UCI and the promise in cl 15.2 was made by the company, not by him personally.

Court Disposition

Judgment for each plaintiff against the first defendant; judgment for the second defendant against the plaintiffs.

Orders

  • ['Verdict and judgment for the first plaintiff against the first defendant for $120,124.06.' 'Verdict and judgment for the second plaintiff against the first defendant for $120,124.06.' 'Verdict and judgment for the second defendant against the plaintiffs.' 'The first defendant is to pay the costs of the...