Australia, Sept. 9 -- New South Wales Land and Environment Court issued text of the following judgement on Aug. 8:

1. The plaintiff, Boral Resources (NSW) Pty Ltd (Boral), supplies construction material and building products. The defendant, Pacific National Services Pty Ltd (Pacific National), is a rail freight operator. Both are substantial corporations.

2. They entered into a suite of contracts under which Pacific National provided rail transport services to Boral, including making available the necessary rolling stock. One of the contracts, called the Services Contract Peppertree Quarry and Dunmore Quarry to Maldon, Enfield and St Peters (the Contract), gave Boral a call option to acquire from Pacific National a large number of freight railway carriages (Wagons) which had been designed and manufactured at the instance of Pacific National for the purpose of being used to carry Boral products.

3. The Contract also provided for Pacific National to give to Boral various categories of documentation relevant to the Wagons and a refuelling facility.

4. The Contract defines the Wagons Call Option as "the option granted by the Services Contractor to the Principal to purchase any or all of the Wagons on the terms set out in this [Services] Contract".

5. There is a definition of Wagons which covers the Wagons earlier referred to.

6. Boral exercised the option so as to acquire 114 Wagons.

7. Subsequently, the parties agreed that four Wagons should be excluded because they were damaged. Boral accepted that only 110 Wagons needed to be delivered. But Pacific National took the position that it was only going to deliver 98 Wagons on the basis that 12 Wagons were "spare wagons" (not a term to be found anywhere in the Contract) and therefore not covered by the Wagons Call Option (the Wagons Issue). There was no issue, it seems, that the spare wagons were Wagons as defined in the Contract. If there was a constructional choice to be made, it is not one which is readily apparent.

8. Boral also said that Pacific National had not delivered documentation it was obliged under the Contract to deliver (the Documentation Issue).

9. Boral started the proceedings claiming delivery of the Wagons and the documentation.

10. Shortly before the trial (on 1 August 2025) and no doubt properly advised, Pacific National capitulated and agreed to deliver 110 Wagons and undertook to provide all outstanding documentation.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/198831d3e338756ad07ec865)

Disclaimer: Curated by HT Syndication.