Vector Gas Limited v Bay of Plenty Electricity Limited - SC 65/2008

Civil appeal – contract interpretation – interpretation of an Interim agreement to preserve gas supply until decision made as to the validity of a termination of gas distribution agreement between the Vector Gas Limited (“NGC”) and Bay of Plenty Energy Limited (“BoPE” )– whether the Court of Appeal erroneously interpreted the terms of the interim agreement as meaning that the repeated phrase “6.50 per GJ” referred to a bundled price for not only the quantities of gas supplied but also transmission and network costs associated with delivery of such gas, rather than to a gas only price – whether the parties had given their own meaning to the phrase “6.50 per GJ” in prior correspondence – whether the Court of Appeal artificially excluded from consideration the bulk of relevant prior correspondence – whether the Court of Appeal disregarded the context of the agreement negotiations that the only other options for BoPE were cessation of gas supply or the giving of an undertaking as to market related damages – whether the Court of Appeal gave weight to unsupported and inherently implausible “reputational” speculation that NGC might not have pressed for a market comparable price in the interim agreement – whether the Court of Appeal was wrong to reach a decision whereby NGC was worse off than if BoPE had given an undertaking as to damages – whether the Court of Appeal’s decision  is contrary business common sense and fundamental principles of contractual interpretation. [2008] NZCA 338  CA 679/2008  1 September 2008