Electricity Generation Corporation (ABN 58 673 830 106) t/as Verve Energy v. Woodside Energy Ltd (ABN 63 005 482 986) and Ors
Woodside Energy Ltd (ABN 63 005 482 986) and Ors v. Electricity Generation Corporation (ABN 58 673 830 106) t/as Verve Energy

Lower Court Judgment

20/02/2013 Supreme Court of Western Australia (Court of Appeal) (McLure P, Newnes JA, Murphy JA)

[2013] WASCA 36

Catchwords

Contract law – Proper construction of contractual terms – Breach of obligation under contract – Economic duress – Voidable contracts –Verve is a statutory corporation which supplies electricity to South Western Australia – Verve obtained gas from Woodside and third party pursuant to Gas Supply Agreement (the “Agreement”) – Clause 3.3 of the Agreement obliged Woodside to use reasonable endeavours to supply supplemental gas having regard to all relevant commercial, economic and operational matters – Third party’s plant shut down following fire – Woodside declined to supply supplemental gas but offered to supply same gas under separate short term agreement at higher price – Whether Woodside in breach of clause 3.3 of the Agreement – Whether short term agreement voidable for economic duress.

Contract law – Voidable contract – Unjust enrichment – Restitution – Whether restitution available where short term agreement not rescinded.

Short Particulars