Pinpar Development Pty Limited v TL Timber Development Pty Limited (1999) N1857

• Jurisdiction: Papua New Guinea
• Court: National Court
• Citation: [1999] PNGLR 139
• Date: 01 April 1999
• Year: 1999

Full Title: Pinpar Development Pty Limited v TL Timber Development Pty Limited (1999) N1857

National Court: Kapi DCJ

Judgment Delivered: 1 April 1999

1 Practice and procedure—Parties to action—adding crossdefendant—Principles to be applied—Proposed crossdefendant parent company of crossdefendant company—Lifting corporate veil.

2 CBS Inc v Ranu Investments Pty Ltd [1978] PNGLR 66, Jacob Luke v John Ralda [1992] PNGLR 549, Esther Pierce v MVIT [1988–89] PNGLR 480 referred to

___________________________

Kapi DCJ: In a writ of summons (WS 1088 of 1996) Pinpar Development Pty Ltd (plaintiff) sued TL Timber Development Pty Ltd (defendant) for damages for breach of contract. The cause of action arises out of a logging and marketing agreement in respect of logs and sawn timber from Ormand Lako Timber Permit Area in the Central Province. In accordance with clause 34 of the agreement, the plaintiff agreed to finance and build a sawmill for the defendant. It was agreed that the defendant should repay the cost of construction of the sawmill within 3 years without any interest. The plaintiff claims that it built the sawmill at the cost of K751,280.00 and the defendant breached the contract by failing to repay the money.

The defendant (crossclaimant) has filed a defence and has brought a counterclaim against the plaintiff. The crossclaim is based on clause 14 of the agreement that the plaintiff (crossdefendant) failed to reimburse the earnings generated from the logging operations to the...