Midcoast Petroleum Pty Ltd v Keldros Pty Ltd [2019] NSWSC 970

Midcoast Petroleum Pty Ltd v Keldros Pty Ltd [2019] NSWSC 970

Keldros was liable to Midcoast under the lease for the costs associated with a 2011 Council clean-up notice (Past Remediation Claim), limited future remediation costs regarding the deployment of an ORC sock in MW12 and a proportion of investigation costs for the north-western portion of Lot 7 (Future Remediation Claim), and $150 make good. The major remediation claims for Lot 8, regulatory claims, and most make good damages failed, notably due to limited causation, lack of proven quantum, no substantial loss from regulatory breaches, and s 133A of the Conveyancing Act due to post-lease renovations. The fuel debt was fully set off by the bank guarantee application. Mr Plant, as guarantor,...

Parties
Plaintiff: Midcoast Petroleum Pty Ltd; First Defendant: Keldros Pty Ltd; Second Defendant: Andrew Robert Plant
Jurisdiction
Australia
Judgment Date
01 August 2019
Procedural Posture
Civil (contract/lease/environmental) / Final Judgment
Outcome
Judgment partly for plaintiff; majority of claims dismissed; substantial costs awarded to defendants.
Legal Topics
Lease Obligations, Remediation of Contamination, Make Good Obligations, Damages, Guarantor Liability, Statutory Compliance, Interpretation of Contract
Contract Law Property Law Environmental Law Lease Obligations Remediation of Contamination Make Good Obligations Damages Guarantor Liability +2 more

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 6 Authorities cited 16 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Midcoast Petroleum Pty Ltd

Plaintiff

Keldros Pty Ltd

First Defendant

Andrew Robert Plant

Second Defendant

Procedural Posture

Civil (contract/lease/environmental) / Final Judgment

Legal Issues

  1. 1 Whether Keldros Pty Ltd breached lease and fuel supply agreement in respect of contamination and make good obligations
  2. 2 Whether Keldros liable for past and future remediation costs under lease and/or fuel supply agreement
  3. 3 Extent of liability for regulatory non-compliance

Ratio Decidendi

Keldros was liable to Midcoast under the lease for the costs associated with a 2011 Council clean-up notice (Past Remediation Claim), limited future remediation costs regarding the deployment of an ORC sock in MW12 and a proportion of investigation costs for the north-western portion of Lot 7 (Future Remediation Claim), and $150 make good. The major remediation claims for Lot 8, regulatory claims, and most make good damages failed, notably due to limited causation, lack of proven quantum, no substantial loss from regulatory breaches, and s 133A of the Conveyancing Act due to post-lease renovations. The fuel debt was fully set off by the bank guarantee application. Mr Plant, as guarantor,...

Court Disposition

Judgment partly for plaintiff; majority of claims dismissed; substantial costs awarded to defendants.

Orders

  • Judgment for the plaintiff against the first and second defendants for: (i) Past Remediation Claim: $8,249.75; (ii) Future Remediation Claim: $162 (one-quarter of cost for ORC sock in MW12 in 2016), plus agreed proportion of environmental assessment report costs for north-west Lot 7; (iii) Make Good Claim: $150;...
  • Plaintiff’s other claims dismissed.