Beevers & Anor v Port Phillip Sea Pilots Pty Ltd & Anor

[2007] VSC 556

Supreme Court of Victoria

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For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Expert determination
3. › Valuation by expert under contract
4. › Binding nature of expert valuation
5. › Grounds for setting aside
6. › Whether valuation vitiated by partiality and want of independence
7. › Whether valuation complied with terms of contract
1. Contract
2. › Expert determination
3. › Valuation by expert under contract
4. › Discretionary valuations distinguished from valuations based on fixed objective criteria
5. › Scope of judicial review of discretionary valuations
6. › Whether error of judgment or methodology reviewable
1. Contract
2. › Expert determination
3. › Valuation by expert under contract
4. › Remedy where valuation vitiated
5. › Whether court should fix price or remit to new expert
6. › Whether invalidity of valuation constitutes breach of contract
1. Contract
2. › Implied terms
3. › Expert valuation
4. › Whether term implied that valuation must be product of independent skill and judgment
5. › Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337

Quick Take

An expert valuation under a contract will be binding if it complies with the contractual terms, and errors of methodology or judgment in a discretionary valuation will not vitiate it. However, a term that the valuation be the product of independent skill and judgment is readily implied, and extensive involvement by one party's representatives in the preparation of the valuation may vitiate it for want of independence. The invalidity of an expert valuation does not constitute a breach of contract giving rise to damages; the proper remedy is remission to a new independent expert.