The Mount Bruce Case in Short

The Mount Bruce case involved the interpretation of a clause in a commercial contract. Under the contract Mount Bruce Mining Pty Ltd was obliged to pay Wright Prospecting Pty Ltd royalties for the iron ore won from the “MBM area”.

The issue before the High Court that led the court to its discourse on interpreting commercial contracts was what the “MBM area” meant in the contract. The Court held that:

  • determining the meaning of that term must start with consideration of the language that the parties used in the contract;
  • the “MBM area” meant a physical area;
  • this was the natural and ordinary meaning of the language used in the contract; and
  • that meaning was consistent with the commercial context and the objective of the contract.

The KLD Legal advantage

Kerry Davis, the Principal of KLD Legal, had 5 years of experience in representing a major landlord who owned a number of multi-level buildings in the CBD of Auckland that were fully tenanted. She had primary responsibility for drafting, reviewing, advising on and enforcing all of the landlord’s leases.

Contact KLD Legal today for advice on any or all of the terms and conditions in your lease or whether you have an enforceable agreement to lease. We have the advantage of being able to give you commercial advice and enforcing that advice, if necessary.

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