Recoveries Corporation Group Ltd v American Express Australia Ltd [2016] NSWSC 771

Recoveries Corporation Group Ltd v American Express Australia Ltd [2016] NSWSC 771

RCG is entitled to commission on payments received by AMEX from debtors after the contractual termination date, where those payments are made in accordance with arrangements made by RCG with the debtor on behalf of AMEX prior to termination and accepted by AMEX. The right to commission arises once payment is made and does not depend on further mutual performance under the contract; therefore, such rights accrue and survive the contract's termination. This applies to accounts referred both before and after the Master Agreement's effective date, as the final contractual arrangements were intended to govern all such referrals. An implied term was not necessary given the express regime, and a...

Parties
First Plaintiff: Recoveries Corporation Group Ltd; Second Plaintiff: Recoveries Corporation Pty Ltd; Defendant: American Express Australia Ltd
Jurisdiction
Australia
Judgment Date
15 June 2016
Procedural Posture
Contractual/commercial Dispute / Principal Judgment, Directions for Final Orders Pending Further Submissions
Outcome
Judgment for RCG against AMEX in respect of commission payable for post-termination debtor payments per arrangements made by RCG pre-termination; directions given for submission of orders and costs left open pending any further submissions.
Legal Topics
Termination of Contract, Commission Entitlement, Construction and Interpretation of Contracts, Implied Terms, Unjust Enrichment, Restitution
Contract Law Commercial Law Equity Termination of Contract Commission Entitlement Construction and Interpretation of Contracts Implied Terms Unjust Enrichment +1 more

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Parties

Recoveries Corporation Group Ltd

First Plaintiff

Recoveries Corporation Pty Ltd

Second Plaintiff

American Express Australia Ltd

Defendant

Procedural Posture

Contractual/commercial Dispute / Principal Judgment, Directions for Final Orders Pending Further Submissions

Legal Issues

  1. 1 Whether the plaintiff is entitled to payment of commission following termination of contract for payments made by debtors after the termination date in respect of arrangements made prior to termination
  2. 2 Whether entitlement arises as an express term or by necessary implication
  3. 3 Whether there is an effective cause requirement for payment

Ratio Decidendi

RCG is entitled to commission on payments received by AMEX from debtors after the contractual termination date, where those payments are made in accordance with arrangements made by RCG with the debtor on behalf of AMEX prior to termination and accepted by AMEX. The right to commission arises once payment is made and does not depend on further mutual performance under the contract; therefore, such rights accrue and survive the contract's termination. This applies to accounts referred both before and after the Master Agreement's effective date, as the final contractual arrangements were intended to govern all such referrals. An implied term was not necessary given the express regime, and a...

Court Disposition

Judgment for RCG against AMEX in respect of commission payable for post-termination debtor payments per arrangements made by RCG pre-termination; directions given for submission of orders and costs left open pending any further submissions.

Orders

  • Each party is to make any written submissions within 14 days regarding the reasons given.
  • If no submissions, plaintiffs to bring in short minutes of orders within 21 days.