Savvy Vineyards 4334 Limited and Savvy Vineyards 3552 Limited v Weta Estate Limited and Tirosh Estate Limited - SC 114/2019

Media releases

Summary

Civil Appeal – Whether the Court of Appeal erred in interpreting the long-term supply contracts, particularly in respect of pre-contractual negotiations and post-contractual conduct – Whether the Court of Appeal erred in determining the elective right to purchase grapes under the contract.

Result

A The application for leave to appeal is granted on the question (Weta Estate Ltd v Savvy Vineyards 4334 Ltd [2019] NZCA 437) whether the Court of Appeal was correct as to:
(a) the effect on the parties’ legal positions of the two earlier judgments, referred to in [4] below, dealing with whether the contract had been terminated; and
(b) the interpretation of cl 2.2 and cl 2.4.

B The application is otherwise dismissed.
12 December 2019
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A The appeal is allowed. The judgment of the Court of Appeal is set aside. The respondents are liable to the appellants on the first and second causes of action in the first amended statement of claim.
B An order directing an inquiry into damages is made in relation to the first cause of action.
C The declaration and the order directing an inquiry into damages made by the High Court in relation to the second cause of action are restored.
D The first and second respondents must pay the first and second appellants one set of costs of $25,000 plus usual disbursements.
E The orders as to costs in the Court of Appeal and the orders as to costs in the High Court as they relate to the High Court’s dismissal of the first cause of action are quashed. Costs should be re-determined in those Courts in light of this judgment.
22 October 2020

Date of Hearing

26 May 2020

Judges

Winkelmann CJ, William Young, Glazebrook, O'Regan and Ellen France JJ

Hearing Transcripts

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