Santos Coffee Company Pty Limited v Direct Freight Express Pty Ltd (No 2) [2010] NSWCA 77

Santos Coffee Company Pty Limited v Direct Freight Express Pty Ltd (No 2) [2010] NSWCA 77

Clause 4 of the contract is clear and unambiguous; it does not wholly negate clause 3 nor render the contract unworkable. Both terms can operate without contradiction. The Appellant is entitled to judgment in a small amount, and set-off should occur with the sum owing to the Respondent. Costs orders are adjusted to...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
30 April 2010
Procedural Posture
Appeal / Consequential Orders Following Appeal Judgment
Outcome
Appeal allowed; District Court orders set aside and new orders made for set-off of judgments and adjusted costs.
Legal Topics
['construction of Contract Terms' 'costs' 'judgment Set Off']
['civil Procedure' 'contract'] ['construction of Contract Terms' 'costs' 'judgment Set Off']

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Procedural Posture

Appeal / Consequential Orders Following Appeal Judgment

Legal Issues

  1. 1 ['Whether the construction of clauses 3 and 4 of the contract allowed both to operate without contradiction or ambiguity' 'Whether clause 4 was fundamentally contradictory to clause 3 or ambiguous' 'Entitlement and calculation of costs upon appeal and in the court below']

Ratio Decidendi

Clause 4 of the contract is clear and unambiguous; it does not wholly negate clause 3 nor render the contract unworkable. Both terms can operate without contradiction. The Appellant is entitled to judgment in a small amount, and set-off should occur with the sum owing to the Respondent. Costs orders are adjusted to reflect partial success and offers made prior to trial.

Court Disposition

Appeal allowed; District Court orders set aside and new orders made for set-off of judgments and adjusted costs.

Orders

  • ['Appeal allowed.' 'District Court orders of 31 October 2008 and 7 November 2008 set aside.' 'Judgment for Santos against Direct to take effect as at 5 March 2010 in the sum of $1,664.74 including interest up to 5 March 2010 and judgment for Direct against Santos to take effect as at 5 March 2010 in the sum of...