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Question1

Brian is the Managing Director of Computer Tech Pty Ltd “CTPL”. In November 2012, Brian arranged for a number of distinguished international guests to visit Newcastle early in 2013. The guests were representatives of various international computer companies who enjoyed attending overseas conferences at quality venues. Brian was to demonstrate to them his company’s ‘ground breaking’ computer programming technology. Brian was hopeful that the guests would be so impressed by their stay and his presentation that CTPL would as a result, secure a number of valuable contracts.

Brian decided that the venue for his presentation would be the prestigious Regis Plaza at Pokolbin in the Hunter Valley. In part, the Regis Plaza was chosen above other venues as its own computer network was the most compatible with that of the more recently developed programming technology of CTPL.

Back in November 2012, Brian signed a contract and paid the Regis Plaza $10,000 for the use of its fully equipped presentation room (located in its main building) for 14^th and 16^th January 2013. The cost also included a seafood lunch for the international guests on both days of the presentation. All the details were finalised.

The first day of the conference proceeded without incident but at 11:40pm on the evening of 14th January 2013, while Brian and his guests were sleeping at a nearby luxurious hotel, an earthquake rocked the Hunter Valley. The hotel at which Brian and his guests were staying was not affected but the Regis Plaza suffered significant structural damage. Authorities decide that due to safety concerns, the main building of the Regis Plaza had to be immediately closed for 2 weeks to allow the necessary repairs to be carried out. The next morning, Brian was informed by the Regis Plaza that they were sourcing a large portable building that would be transported to site, supplied with basic power from a mobile generator and furnished for use during the final day of his presentation. Brian was not satisfied with this alternative and told the Regis Plaza that he would find another venue.

After much effort and many phone calls, Brian was able to secure another venue nearby to host the second day of his presentation. This venue was called “the Golden Retreat" and was managed by Edwin.”

At lunch time on 15th January 2013, when Brian first contacted Edwin by telephone, he was told that the Golden Retreat’s corporate room (where Brian would conduct the presentation) seats 40 people. Brian told Edwin that having sufficient seating for his guests is vital and that he has 39 international guests attending his presentation. Edwin said “no problem then” and tells Brian that he can have use of the Golden Retreat’s corporate room for his presentation for $10,000. Brian is a little upset that the Golden Retreat’s corporate rate for a single day is so expensive but Edwin tells him that his venue is the only nearby venue that has a compatible computer network. Unbeknown to Edwin, there are two other suitable local venues that have just upgraded their computer networks that were available and would have only charged Brian a total cost of $5,000 to cater for the final day of his conference.

Later that morning, while in conversation with Edwin at the Golden Retreat, Brian asks Edwin some questions about the lunch menu that is included in the cost. Edwin tells Brian that the food at the Golden Retreat is the tastiest in the region and that in his opinion; Brian’s guests will love it. Brian then signs a contract and pays Edwin the asking price of $10,000. Unfortunately, the signed written contract does not mention that Brian and Edwin agreed that there would be 39 guests attending.

The next day (on 16/01/13), when Brian is half way through his presentation, the Golden Retreat has a visit from the local council inspector who informs Brian that due to occupational health and safety laws, the conference room has a seating capacity of only 30 people. The inspector tells Brian that this is the second infringement of this nature (ie, the second fine) he has issued to this venue in the past month. Nine of Brian’s guests are forced to leave the room and are understandably, demanding Brian immediately refund them the cost of the conference. To make matters worse, the other 30 international guests were not happy with the food delivered on the second day of the conference describing it as bland and tasteless. At the conclusion of the conference, they too demand a refund of their money from Brian.

The conference has now ended and the Regis Plaza is refusing to return Brian’s $10,000 explaining that the Regis Plaza and Brian had a binding contract and that the earthquake was simply an unfortunate event. The Regis Plaza is also arguing it was arranging a viable alternative that would have allowed Brian to present to his guests on the second day but that he unreasonably rejected this alternative arrangement.

 Edwin is also causing Brian grief and is refusing to refund Brian his money.

You are the lawyer for Brian and he seeks your advice on the question of whether or not, as a matter of law, he is able to insist upon the return of his money from:

a) the Regis Plaza and if so, on what basis?

b) Edwin at the Golden Retreat and if so, on what basis?

END OF ASSIGNMENT

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