Lowering the Privity Bar: Explaining the Effect of Hobart International Airport Pty Ltd v Clarence City Council
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(Accepted version)
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2024
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Giancaspro, M.
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Journal article
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InHouse Counsel, 2024; 27(7-8):86-88
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Mark Giancaspro
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Abstract
n March 2022 the High Court delivered an important judgment with implications for the doctrine of privity. 'Hobart International Airport Pty Ltd v Clarence City Council' concerned a dispute between the appellant airports (based in Hobart and Launceston) and the local councils administering the municipal areas in which those airports were located. These areas were also located upon Commonwealth land. The appellants had entered into long-term leases with the Commonwealth, each commencing in mid-1998 and having 50-year terms. Several other airport operators had also entered into similar leases, the aim being to facilitate the eventual privatisation of Australia's federal airports. While the privity doctrine retains its fundamental importance in the law of contract, the High Court’s decision in 'Hobart International' makes clear that parties with a “sufficient” or “real” interest under a contract to which they are not privy can obtain declaratory relief regarding its interpretation or effect.
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