Atlas International Travel Pty Ltd & Anor v Bennet & Ors [1999] NSWSC 877

Atlas International Travel Pty Ltd & Anor v Bennet & Ors [1999] NSWSC 877

The acknowledgment in the agreement that legal costs 'shall be payable by the business' is not enforceable against the plaintiff companies, as they were not parties to the contract and privity of contract was not established; the Magistrate’s determination to the contrary was an error of law.

Parties
First Plaintiff: Atlas International Travel Pty Ltd; Second Plaintiff: Pacific and International Travel Company Pty Ltd; First Defendant: Warwick Donald Bennet; Second Defendant: Alan Graham Smith; Third Defendant: Shirley Margaret Smith; Fourth Defendant: Warwick Bennet Pty Ltd
Jurisdiction
Australia
Judgment Date
02 September 1999
Procedural Posture
Appeal / Final Judgment
Outcome
appeal allowed
Legal Topics
Privity of Contract, Agreement for Sale of Shares, Liability for Legal Costs
Contract Law Privity of Contract Agreement for Sale of Shares Liability for Legal Costs

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 2 Authorities cited 4 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Atlas International Travel Pty Ltd

First Plaintiff

Pacific and International Travel Company Pty Ltd

Second Plaintiff

Warwick Donald Bennet

First Defendant

Alan Graham Smith

Second Defendant

Shirley Margaret Smith

Third Defendant

Warwick Bennet Pty Ltd

Fourth Defendant

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether plaintiff companies are liable for defendants' legal costs under an agreement to which they were not parties
  2. 2 Whether clause acknowledging legal fees to be 'payable by the business' is enforceable against the company

Ratio Decidendi

The acknowledgment in the agreement that legal costs 'shall be payable by the business' is not enforceable against the plaintiff companies, as they were not parties to the contract and privity of contract was not established; the Magistrate’s determination to the contrary was an error of law.

Court Disposition

appeal allowed

Orders

  • Decision of the Magistrate given on 20 April 1999 set aside
  • Statement of Claim filed by defendants dismissed