Military Road Island Pty Ltd v Priority Plus Capital Pty Ltd; Priority Plus Capital Pty Ltd v Military Road Island Pty Ltd [2008] NSWDC 268

Military Road Island Pty Ltd v Priority Plus Capital Pty Ltd; Priority Plus Capital Pty Ltd v Military Road Island Pty Ltd [2008] NSWDC 268

Clause 4.9(b) of the agreement was triggered when Priority Plus Capital Pty Ltd assigned the development (including the know-how) to a third party without prior communication of any opinion that the development was uncommercial or unviable to the plaintiff, and thus Military Road Island Pty Ltd is entitled to the $200,000 success fee plus interest. There was no total failure of consideration regarding the know-how fee paid by PP, as substantial benefit was received; thus, the cross-claim is dismissed.

Jurisdiction
Australia
Judgment Date
22 December 2008
Procedural Posture
Civil / Judgment
Outcome
Judgment for the plaintiff. Cross-claim dismissed.
Legal Topics
['total Failure of Consideration' 'interpretation']
['contracts'] ['total Failure of Consideration' 'interpretation']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ["Whether Military Road Island Pty Ltd (MRI) is entitled to recover $200,000 'success fee' from Priority Plus Capital Pty Ltd (PP) under the contract" "Whether Priority Plus Capital Pty Ltd (PP) is entitled to a refund of a $267,000 'know-how' fee due to alleged failure of consideration"]

Ratio Decidendi

Clause 4.9(b) of the agreement was triggered when Priority Plus Capital Pty Ltd assigned the development (including the know-how) to a third party without prior communication of any opinion that the development was uncommercial or unviable to the plaintiff, and thus Military Road Island Pty Ltd is entitled to the $200,000 success fee plus interest. There was no total failure of consideration regarding the know-how fee paid by PP, as substantial benefit was received; thus, the cross-claim is dismissed.

Court Disposition

Judgment for the plaintiff. Cross-claim dismissed.

Orders

  • ['Verdict for the plaintiff against the defendants for $200,000 plus interest to the date of judgment.' 'Dismiss cross claim.']