Ringrow Pty Ltd v BP Australia Pty Ltd

HIGH COURT OF AUSTRALIAGLEESON CJ,GUMMOW, KIRBY, HAYNE, CALLINAN AND HEYDON JJMatter No S291/2005RINGROW PTY LTD  APPELLANTANDBP AUSTRALIA PTY LTD  RESPONDENTMatter No S292/2005ULTIMATE FUEL PTY LIMITED  APPELLANTANDBP AUSTRALIA PTY LTD  RESPONDENTMatter No S293/2005NADER-ONE PTY LIMITED  APPELLANTANDBP AUSTRALIA PTY LTD  RESPONDENTRingrow Pty Ltd v BP Australia Pty LtdUltimate Fuel Pty Limited v BP Australia Pty LtdNader-One Pty Limited v BP Australia Pty Ltd[2005] HCA 7117 November 2005S291/2005, S292/2005 and S293/2005ORDERAppeals dismissed with costs.On appeal from the Federal Court of AustraliaRepresentation:T E F Hughes QC with T D F Hughes for the appellants (instructed by Stojanovic Solicitors)B W Walker SC with M Walton SC and D R Sibtain for the respondents (instructed by Corrs Chambers Westgarth)Notice:  This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.CATCHWORDSRingrow Pty Ltd v BP Australia Pty LtdContract – Penalty – Agreement to purchase service station from distributor of fuel – Collateral agreement requiring fuel to be purchased exclusively from distributor – Breach of collateral agreement – Termination of collateral agreement by distributor pursuant to contractual power – Option to buy back service station exercisable by distributor on termination of collateral agreement – Whether option void and unenforceable as a penalty – Whether exercise of option oppressive or extravagant and unconscionable compared with genuine pre-estimate of damage – Relevance of proportionality to penalty questions.GLEESON CJ, GUMMOW, KIRBY, HAYNE, CALLINAN AND HEYDON JJ.   These appeals concern the effect of contracts by which each of Ringrow Pty Ltd, Ultimate...