Beryl Sturesteps v HIH Overseas Holdings Ltd

Court of Appeal

Supreme Court

New South Wales

Medium Neutral Citation: Beryl Sturesteps v HIH Overseas Holdings Ltd [2011] NSWCA 314
Hearing dates: 8 August 2011
Decision date: 30 September 2011
Before: Bathurst CJ at [1]; Macfarlan JA at [6]; Sackville AJA at [7]
Decision:
Appeal dismissed with costs.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: CONTRACT - oral contract - evidence of contract - whether evidence that liability for employee's spouse's loan discharged
Category: Principal judgment
Parties: Beryl Sturesteps (Appellant)
HIH Overseas Holdings Ltd (In Liquidation) (Respondent)
Representation: Counsel
B W Rayment QC / A Metcalfe (Appellant)
F Gleeson SC / R Foreman (Respondent)
Solicitors
Benjamin & Khoury Solicitors (Appellant)
Blake Dawson (Respondent)

File Number(s): CA 2003/82973
Decision under appeal

Citation:

[2010] NSWSC 169
[2010] NSWSC 903

Before:

Brereton J

File Number(s):

SC 258096/2006

Judgment

BATHURST CJ: This is an appeal from a judgment of Brereton J in which his Honour ordered that the appellant pay to the respondent the sum of $576,497.43. The judgment was in respect of a loan made by C E Heath Holdings (United States) Inc (HeathCal) to the respondent on or about 16 March 1988 in the sum of US$200,000. The loan and all rights thereunder were assigned by HeathCal to the respondent on 27 December 1994. Judgment is in respect of the loan and interest thereon.

The proceedings were heard by the primary judge at the same time as proceedings between George Osvald Sturesteps as plaintiff and Anthony Gregory McGrath, Christopher John Honey and HIH Casualty & General Insurance Limited (in liquidation) as defendants, SC 258096/2006.

The appeals in each set of proceedings were heard together.

The appeal in these proceedings deals with what I have described as the United States Apartment Issue in my judgment in the proceedings between Messrs McGrath, Honey and HIH Casualty & General Insurance Limited (in liquidation) and Mr Sturesteps. For the reasons given in pars [88]-[99] of that judgment the appeal in these proceedings must fail.

Accordingly, I would order that the appeal be dismissed with costs.

MACFARLAN JA: I agree with Bathurst CJ.

SACKVILLE AJA: I agree with Bathurst CJ.

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CaseChat Overview and Summary

The New South Wales Court of Appeal considered an appeal by Beryl Sturesteps against HIH Overseas Holdings Ltd. The central dispute concerned whether an oral contract had been established, and if so, whether that contract operated to discharge HIH's liability for a loan made to an employee.

The Court was required to determine whether the primary judge erred in finding that no oral contract existed between the parties. Specifically, the appeal raised questions about the sufficiency of the evidence presented to establish the terms and existence of such a contract, and whether the alleged oral agreement effectively discharged HIH's pre-existing liability.

In dismissing the appeal, the Court of Appeal affirmed the primary judge's finding that the evidence did not support the existence of an oral contract. The judges reasoned that the appellant had failed to discharge the onus of proving the necessary elements of an oral contract, including its terms and the intention of the parties to be legally bound. Consequently, HIH's liability for the loan remained undischarged. The appeal was dismissed with costs.

Orders of the court

Appeal dismissed with costs.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

Medium Neutral Citation:	Beryl Sturesteps v HIH Overseas Holdings Ltd [2011] NSWCA 314
Hearing dates:	8 August 2011
Decision date:	30 September 2011
Before:	Bathurst CJ at [1]; Macfarlan JA at [6]; Sackville AJA at [7]
Decision:	Appeal dismissed with costs. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]
Catchwords:	CONTRACT - oral contract - evidence of contract - whether evidence that liability for employee's spouse's loan discharged
Category:	Principal judgment
Parties:	Beryl Sturesteps (Appellant) HIH Overseas Holdings Ltd (In Liquidation) (Respondent)
Representation:	Counsel B W Rayment QC / A Metcalfe (Appellant) F Gleeson SC / R Foreman (Respondent) Solicitors Benjamin & Khoury Solicitors (Appellant) Blake Dawson (Respondent)
File Number(s):	CA 2003/82973
Decision under appeal	Citation: [2010] NSWSC 169 [2010] NSWSC 903 Before: Brereton J File Number(s): SC 258096/2006