[2023] NTSC 1
General information, not legal advice.
Supreme Court of the NT
2023-01-09
Original judgment source is linked above.
Practice and procedure - Application for summary judgment - Contract - Construction of clause in lease - Whether appropriate case for summary disposal - complex legal argument - application dismissed
Supreme Court Amendment (Miscellaneous) Rules 2018 (NT)
Supreme Court Rules 1987 (NT) O 22, 24, 47
Australian & New Zealand Banking Group v David [1991] NTSC 74; (1991) 1 NTLR 93
Australian Securities and Investment Commission v Cassimatis [2013] FCA 641
Civil & Civic Pty Ltd v Pioneer Concrete (NT) Pty Ltd [1991] NTSC 3; (1991) 1 NTLR 43
Cole Sopov v Kane Constructions Pty Ltd [2007] VSCA 257
DTR Nominees Pty Ltd v Mona Homes Pty Ltd [1978] HCA 12; (1978) 138 CLR 423
Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640
Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104
Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118
Sportsbet Pty Ltd v Moraitis [2010] NTSC 24
McCasker v Omad (NT) Pty Ltd [2023] NTSC 1
The Tenant will at the expiration or sooner determination of the Lease do all acts and things necessary to enable the Landlord or any person authorised by the Landlord to obtain the renewal of the Licence and any other licence or permit or a new Licence or any other new licence or permit the transfer of the Licence or any other licence or permit then existing and in force to any person or corporation nominated by the Landlord to enable the Business to continue uninterrupted at the Premises.
(a) Upon termination of this lease by expiry of the term or for any other reason the Landlord may elect by notice in writing to the Tenant to purchase the stock-in-trade and plant and equipment of the Tenant in the Premises and used for the Business. The election may be made at any time prior to the termination of this Lease.
(b) Upon the election being made by the Landlord an inventory of the good and saleable stock-in-trade and the plant and equipment in a condition for use in the Business will be made by the Landlord and Tenant.
(c) The sale price of the stock-in-trade will be the landed cost price and the sale price of the plant and equipment will be market value for sale as part of a business.
(d) The sale price less any moneys owed by the Tenant to the Landlord under the terms of the Lease will be paid to the Tenant on the day which is 14 days after the sale price has been agreed or otherwise determined in exchange for possession and evidence that the stock-in-trade and plant and equipment are owned by the Tenant free from encumbrances.
(e) If any dispute arises as to the completion of the inventory or the sale price of the stock-in-trade and plant and equipment the dispute will be determined by a person acting as an expert and not as an arbitrator to be appointed by the President for the time being or next most senior officer available of the Law Society Northern Territory on the application of either Party.
The terms "Licence" and "Business" are defined in the lease and those definitions are also relevant.
...the determination of a summary dismissal application therefore does not require a mini-trial based upon incomplete evidence to decide whether the proceedings are likely to succeed or fail at trial. Instead, it requires a critical examination of the available materials to determine whether there is a real question of law or fact that should be decided at trial. Each application for summary judgment or summary dismissal has to be determined according to its particular circumstances. What is required is a practical judgment of the case at hand. The relevant circumstances will partly depend upon the stage which the proceedings have reached.[8]
(1) Unless the plaintiff makes a proper affidavit the defendant is not required to answer the application for judgment.
(2) The court will give the plaintiff judgment unless the defendant shows cause against the application to the satisfaction of the Court. Cause may be shown by affidavit or otherwise.
(3) The Court will normally require an affidavit by or on behalf of a defendant before a defendant will be granted leave to defend. The defendant is required to use such diligence as is reasonable in the circumstances to put before the Court in a summary form all of the evidence relied on by the defendant in defence of the plaintiff's claim.
(4) The affidavit material relied upon by a defendant may contain statements of fact based on information and belief provided the source of the evidence is identified and the grounds of belief are set out. A defendant may also obtain leave to defend if the defendant tenders evidence which, though not evidence of the facts, shows such evidence exists and will be available at the trial.
(5) A defendant should condescend into particulars. The evidence of the defendant must deal specifically with the facts relied upon by the plaintiff in support of its application. The affidavit of the defendant should state clearly and concisely what facts are relied on as supporting the defence.
(6) The defendant must point to some material, legal or factual, that provides an arguable response to the claim and not leave it to the judicial officer hearing the application to trawl through the material to find an answer to the plaintiff's claim.
(7) The evidence of the defendant should show that there is a real case to be investigated either on the facts or in law.
(8) A defendant will be granted leave to defend if there are facts which, if true, would constitute a defence to the plaintiff's claim. The Court is reluctant to try a case on affidavit where there are facts in dispute.
(9) An important issue is whether the defendant's account of the facts has sufficient prima facie plausibility to merit further investigation. [footnotes omitted]
The argument about the purchase of the gaming machines
[1] Subject to approval of the Director-General of Licensing. In relation to the gaming machine licence, the defendant applied for and received a new licence as a transfer was not possible at that time.
[2] "Elect" is the term used in the lease. There is a dispute as to whether the plaintiff made an election under the lease or exercised an option. Subsequently, the parties agreed that the stock-in-trade would not be included in the purchase. There is no dispute about that.
[3] Statement of claim, paragraph [29].
[4] Supreme Court Amendment (Miscellaneous) Rules 2018 (NT).
[5] Rule 22.01(4) of the SCR does not appear in the Commonwealth legislation.
[6] Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118. There were two joint judgments, that of French CJ and Gummow J and of Hayne, Crennan, Kiefel and Bell JJ. Heydon J, while in agreement with both joint judgments as to the result in that case, did not consider it necessary to address s 31A.
[7] Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118, 138-141, [50]-[60] (Hayne, Crennan, Kiefel and Bell JJ); see also Australian Securities and Investment Commission v Cassimatis [2013] FCA 641, [46] (Reeves J). As explained by Reeves J in Cassimatis at [19], the separate joint judgments in Spencer take different views as to the relevance of earlier decisions, in particular Dey v Victorian Railways Commissioners (1949) 78 CLR 62 and General Steel Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125, which were decided upon earlier forms of words. Reeves J noted that the differences are "quite confined".
[8] [2013] FCA 641, [46].
[9] Spencer v The Commonwealth [2010] HCA 28; (2010) 241 CLR 118, 131 [24] (French CJ and Gummow J), 141 [60] (Hayne, Crennan, Kiefel and Bell JJ).
[10] The provisions remain almost identical to rr 22.03-22.06 of the Supreme Court (General Civil Procedure) Rules 2005 (Vic).
[11] ANZ v David [1991] NTSC 74; (1991) 1 NTLR 93, 95-96, cited with approval in Territory Loans Management v Turner [1992] NTSC 82; (1992) 110 FLR 341, 348.
[12] Supreme Court Rules 1987 (NT) r 22.06(1)(b) ('SCR'); ANZ v David, (n 11) 95.
[13] Sportsbet Pty Ltd v Moraitis [2010] NTSC 24, [12], cited with approval in Proud v Arkell [2019] NTSC 35, [14].
[14] Civil & Civic Pty Ltd v Pioneer Concrete (NT) Pty Ltd [1991] NTSC 3; (1991) 1 NTLR 43, 50-51; see also ASIC v Cassimatis (n 8) 686 [50].
[15] Plaintiff's written submissions 7 November 2022, at [9] and [12].
[17] Above n 15, at [11] and [12].
[20] Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; (2014) 251 CLR 640, 656 [35] (French CJ, Hayne, Crennan and Kiefel JJ).
[21] Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37; (2015) 256 CLR 104, 117 [46]-[51] (French CJ, Nettle and Gordon JJ).
[22] Annexures DDS 6 and DDS 7 affidavit of David De Silva 16/8/22.
[23] Annexure DDS 8 affidavit of David De Silva 16/8/22.
[24] Annexure DDS 9, affidavit David De Silva 16/8/22.
[25] Annexures JT 1 affidavit of John Tsoukalis 7 November 2022.
[26] DTR Nominees Pty Ltd v Mona Homes Pty Ltd [1978] HCA 12; (1978) 138 CLR 423, 431-2.
[27] Cole Sopov v Kane Constructions Pty Ltd [2007] VSCA 257, [15]-[16] (Maxwell P and Kellam JA).
[29] J W Carter, Carter's Breach of Contract (LexisNexis, 2nd ed, 2018) 369-371 [8-26].
[31] Annexures DDS 11, affidavit of David De Silva 16 August 2022.
[32] Annexure DDS 14, affidavit David De Silva 16 August 2022.
[33] Affidavit Damian O'Brien 20 October 2022, [37].
[35] Annexures DDS 6 and 8 of affidavit of David De Silva of 16/8/22 and annexure 16 of affidavit of Damian O'Brien of 20 October 2022.
McCasker
Omad
(1991) 1 NTLR 93
(1991) 1 NTLR 43
(1978) 138 CLR 423
(2014) 251 CLR 640
(2015) 256 CLR 104
(2010) 241 CLR 118
(1949) 78 CLR 62
(1964) 112 CLR 125
(1992) 110 FLR 341