Recent Cases

Stellar Vision Operations Pty Ltd v Hills Health Solutions Pty Ltd [2023] NSWCA 102 (18 May 2023) (Bell CJ, Hammerschlag CJ in Eq and Adamson JA)


CONTRACTS – intention to create binding relations – written agreement between the parties in the form of a letter in which they mutually acknowledge and agree in relation to future supply contracts under which they might supply to third parties patient entertainment systems that they will honour the intent of previous discussions in specifically identified ways including by each contributing 50% of costs and by splitting gross profits 50/50 – where the agreement includes an undertaking to commence negotiations in good faith, to draft an agreement that suits both parties for a long-term relationship – whether their agreement with respect to future contracts is binding – HELD – it is binding

EQUITY – fiduciary duties – whether the parties’ relationship was fiduciary in nature – whether their relationship was one of mutual confidence – whether one party undertook and agreed to exercise a discretion which would affect the interests of the other party, both in a legal and practical sense – HELD – agreement binding and the parties’ relationship was fiduciary

DAMAGES – quantification – discounted cash flow method – where calculation adopted by primary judge included a deduction for future costs of particular items based on a model not agreed between the parties’ experts and based entirely on a party’s guesswork – where respondent was in a better position than the appellant to provide evidence supporting the deduction – HELD – deduction should not be included