Southern Oil Refining Pty Ltd v Hydrodec Australia Pty Ltd [2021] NSWSC 24

Southern Oil Refining Pty Ltd v Hydrodec Australia Pty Ltd [2021] NSWSC 24

SOR was entitled to the outstanding monthly capital charges and tolling fees and the capital payment due on termination, as HA’s and HG’s arguments regarding informal variation, record-keeping, co-operation, or failure to remove equipment lacked merit. The driveway costs were validly included pursuant to agreement between the CEOs and Operating Committee. The expert’s valuation of infrastructure assets was binding, and SOR’s actions regarding storage/mixing of oil did not breach the contract. SOR did not frustrate removal of Hydrotreater, and there was no conversion. HA was obliged to remove the receiving tanks; SOR was entitled to a mandatory injunction as damages were not adequate. HG,...

Jurisdiction
Australia
Judgment Date
29 January 2021
Procedural Posture
Commercial Dispute / Principal Judgment
Legal Topics
['contract Construction' 'breach of Contract' 'co Location of Refinery Plant' 'obligation to Maintain Records and Audit' 'expert Determination' 'removal of Plant/equipment' 'trespass' 'conversion' 'equitable Remedies' 'guarantee Discharge' 'tendency Evidence']
['contracts' 'torts' 'equity' 'guarantee and Indemnity' 'evidence'] ['contract Construction' 'breach of Contract' 'co Location of Refinery Plant' 'obligation to Maintain Records and Audit' 'expert Determination' 'removal of Plant/equipment' 'trespass' 'conversion' 'equitable Remedies' 'guarantee Discharge' 'tendency Evidence']

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Procedural Posture

Commercial Dispute / Principal Judgment

Legal Issues

  1. 1 ['Whether SOR is owed capital charges and tolling fees by HA and HG under the Co-location Agreement' 'Whether the construction of the rear driveway was part of reimbursable capital expenditure' 'Whether SOR or Hydrodec was responsible for plant shutdown and maintenance failures' 'Whether Hydrodec was entitled to leave plant/equipment (especially receiving tanks) on SOR’s land or obliged to remove it' 'Whether SOR’s storage and mixing of PCB-contaminated oil breached contract or caused damages to HA' 'Whether the expert valuation of infrastructure was binding' 'Whether HG is discharged as surety for variations or SOR’s alleged breaches']

Ratio Decidendi

SOR was entitled to the outstanding monthly capital charges and tolling fees and the capital payment due on termination, as HA’s and HG’s arguments regarding informal variation, record-keeping, co-operation, or failure to remove equipment lacked merit. The driveway costs were validly included pursuant to agreement between the CEOs and Operating Committee. The expert’s valuation of infrastructure assets was binding, and SOR’s actions regarding storage/mixing of oil did not breach the contract. SOR did not frustrate removal of Hydrotreater, and there was no conversion. HA was obliged to remove the receiving tanks; SOR was entitled to a mandatory injunction as damages were not adequate. HG,...

Court Disposition

Orders

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