In the case of Nerang Subdivision Pty Ltd v Hutson [2024] QCA 174, the Queensland Court of Appeal deliberated on the interpretation of contractual clauses within a Deed and four Development Leases related to a significant residential land development project. The dispute arose after the appellants—two entities associated with the project development—challenged the original court's finding that the "Developer's Return" from the sale of subdivided lots did not necessitate a GST gross-up, as it was not considered a payment made by the "Owner" to the "Developer." Instead, the court viewed the right of the Project Manager to receive sale proceeds as intrinsic and not an obligation of the Owner to transfer funds. The Court of Appeal upheld the decision that there was no error in the primary judge's interpretation and affirmed the ruling, dismissing the appeal and ordering costs against the appellants. The court emphasized a straightforward contractual reading, observing no agency relationship between the parties that would alter the commercial arrangement agreed upon in the Development Leases.
Full text: https://www.sclqld.org.au/caselaw/148930