HYUNDAI ELEVATOR CO LTD v LIFTRONIC PTY LTD and ORS;HYUNDAI CORPORATION and ANOR v LIFTRONIC PTY LTD [1994] NSWCA 143

HYUNDAI ELEVATOR CO LTD v LIFTRONIC PTY LTD and ORS;HYUNDAI CORPORATION and ANOR v LIFTRONIC PTY LTD [1994] NSWCA 143

The Court of Appeal held that any collateral promises or representations made by Hyundai Australia Pty Ltd in 1986 had lapsed and were not operative when the contracts were entered in April 1988; thus, no collateral contract or liability attached to Hyundai Australia Pty Ltd. On damages, the Court found that the effect of the recession had not been sufficiently allowed for in the assessment below and that damages for loss of profits must be reduced to account for this. The appeals by Hyundai Elevator Co Ltd and Hyundai Corporation succeeded in part to the extent of reducing damages for loss of profits from $3,670,000 to $2,238,063. The appeal by Hyundai Australia Pty Ltd succeeded in...

Parties
Appellant: Hyundai Elevator Co Ltd; Appellant: Hyundai Corporation; Appellant: Hyundai Australia Pty Ltd; Respondent: Liftronic Pty Ltd
Jurisdiction
Australia
Judgment Date
09 December 1994
Procedural Posture
Appeal / Judgment
Outcome
Appeal by Hyundai Australia Pty Ltd allowed; appeals by Hyundai Elevator Co Ltd and Hyundai Corporation allowed in part.
Legal Topics
Breach of Contract, Collateral Contract, Damages, Causation, Representations During Negotiations
Contract Breach of Contract Collateral Contract Damages Causation Representations During Negotiations

Case Brief

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Parties

Hyundai Elevator Co Ltd

Appellant

Hyundai Corporation

Appellant

Hyundai Australia Pty Ltd

Appellant

Liftronic Pty Ltd

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether collateral contracts arose from representations made in 1986 and were enforceable upon contracts of purchase entered in 1988.
  2. 2 Whether damages for loss of profits were correctly calculated and causally linked to breaches by the defendants, including proper allowance for the effects of recession.
  3. 3 Whether wages paid to Mr Kong were recoverable as damages.

Ratio Decidendi

The Court of Appeal held that any collateral promises or representations made by Hyundai Australia Pty Ltd in 1986 had lapsed and were not operative when the contracts were entered in April 1988; thus, no collateral contract or liability attached to Hyundai Australia Pty Ltd. On damages, the Court found that the effect of the recession had not been sufficiently allowed for in the assessment below and that damages for loss of profits must be reduced to account for this. The appeals by Hyundai Elevator Co Ltd and Hyundai Corporation succeeded in part to the extent of reducing damages for loss of profits from $3,670,000 to $2,238,063. The appeal by Hyundai Australia Pty Ltd succeeded in...

Court Disposition

Appeal by Hyundai Australia Pty Ltd allowed; appeals by Hyundai Elevator Co Ltd and Hyundai Corporation allowed in part.

Orders

  • Appeal by Hyundai Australia Pty Ltd allowed.
  • Judgment in favour of plaintiff against Hyundai Australia Pty Ltd set aside; judgment entered for that defendant.