RPR Maintenance Pty Ltd v Marmax Investments Pty Ltd [2014] FCA 514

RPR Maintenance Pty Ltd v Marmax Investments Pty Ltd [2014] FCA 514

The Court held that the Bultitude job was to be included because the primary judgment found it involved a breach of RPR's exclusivity and the relevant variation to contract was dated before termination of the sub-franchise agreement. The Court declined to gross up damages for tax because RPR claimed gross profit, tax consequences were uncertain and contingent, and finality weighed against uncertain future liability. Marmax's indemnity was held to extend to RPR's costs and expenses of bringing the proceedings, including the interlocutory application, because those costs were incurred as a consequence of Marmax's breach. Spanline's damages calculation was to include the additional jobs done...

Jurisdiction
Australia
Judgment Date
22 May 2014
Procedural Posture
Relief; Assessment of Quantum of Damages and Final Orders Following Substantive Proceedings / Post Judgment Determination of Disputed Proposed Final Orders, Disposed of on the Papers
Outcome
The parties were ordered to seek agreement within 7 days on precise costs and expenses figures; if they could not agree, final orders would be made in the proposed terms with the relevant costs referred to as assessed.
Legal Topics
['breach of Contract' 'pre Judgment Interest' 'grossing Up Damages for Tax' 'indemnity for Costs and Expenses' 'interlocutory Costs' 'franchise Agreement Option' 'invalid Termination Notice' 'cross Claim']
['contract Law' 'damages' 'civil Procedure' 'franchising'] ['breach of Contract' 'pre Judgment Interest' 'grossing Up Damages for Tax' 'indemnity for Costs and Expenses' 'interlocutory Costs' 'franchise Agreement Option' 'invalid Termination Notice' 'cross Claim']

Case Brief

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Procedural Posture

Relief; Assessment of Quantum of Damages and Final Orders Following Substantive Proceedings / Post Judgment Determination of Disputed Proposed Final Orders, Disposed of on the Papers

Legal Issues

  1. 1 ['Whether the Bultitude job should be included in the calculation of damages payable by Marmax and Spanline.' 'Whether damages awarded to RPR against Marmax and Spanline should be grossed up for tax.' "Whether Marmax's indemnity to RPR extended to costs and expenses of bringing the proceedings, including the interlocutory application filed on 8 June 2012." "Whether Spanline's damages liability should include jobs done by Marmax in RPR's territory before RPR first told Spanline about Marmax's activities." 'What final orders should be made following the substantive judgment.']

Ratio Decidendi

The Court held that the Bultitude job was to be included because the primary judgment found it involved a breach of RPR's exclusivity and the relevant variation to contract was dated before termination of the sub-franchise agreement. The Court declined to gross up damages for tax because RPR claimed gross profit, tax consequences were uncertain and contingent, and finality weighed against uncertain future liability. Marmax's indemnity was held to extend to RPR's costs and expenses of bringing the proceedings, including the interlocutory application, because those costs were incurred as a consequence of Marmax's breach. Spanline's damages calculation was to include the additional jobs done...

Court Disposition

The parties were ordered to seek agreement within 7 days on precise costs and expenses figures; if they could not agree, final orders would be made in the proposed terms with the relevant costs referred to as assessed.

Orders

  • ["Within 7 days hereof the parties are to seek to agree the precise amounts of the applicant's costs and expenses to be included in proposed orders 2, 3(c) and 11 and the cross respondent's costs in proposed order 12." 'If the parties are unable to reach agreement, final orders will be made in the terms of the...