Bathurst Flashcards
what was the first of two issues that arose in Bathurst
- Meaning of the word ‘shipped’ - was the first performance payment, which is triggered when the first 25k tones are extracted and shipped triggered
what was the second of two issues that arose in Bathurst
- In the event that this payment was triggered, how does the third deed work
what was the substance of the third deed
a failure by [Bathurst] to make, when and as due, a Performance Payment is not an actionable breach of or default under this Agreement for so long as the relevant royalty payments continue to be made under the Royalty Deed
what is the first step of the two step test general - approach to evidence - used in Bathurst
- Prima Facie Relevance:
○ Question: Is the evidence prima facie relevant?
○ Outcome:
No: Inadmissible.
Yes: Proceed to the next stage.
what is the second step of the two step test general - approach to evidence - used in Bathurst
- Probative Value vs. Time Consideration:
○ Question: Does the probative value outweigh the time that admitting the evidence would add to the proceeding?
○ Outcome:
§ No: Inadmissible.
Yes: Admissible.
what is prima facie relevance
prima facie relevance means that, on the surface, the evidence appears to have some logical connection to the issues being decided in the case.
what does probative value outweighing the time admitting it would add to the proceeding MEAN
Probative value refers to the ability of the evidence to prove something important in the case.
The court weighs this value against practical concerns, like how much additional time the introduction of this evidence would require.
What was the role of the Definitive Feasibility Study (DFS) in the Bathurst contract?
The DFS was a condition that made the contract unconditional once Bathurst was satisfied with it.
Why was the DFS found admissible by the court?
The DFS was admissible because it clarified the commercial purpose of the transaction, though it did not favor Bathurst’s argument.
What was Bathurst’s argument regarding coal shipment?
Bathurst argued that coking coal needed to be shipped internationally to trigger performance payments.
How did the focus on thermal coal affect Bathurst’s argument?
If the focus was on selling thermal coal locally, it weakened Bathurst’s argument about shipment requirements for coking coal.
What other evidence was introduced by Bathurst and L&M?
Letters from L&M’s lawyer and Bathurst’s financial documents were introduced, showing mutual conduct and Bathurst’s initial agreement on the sale of thermal coaL
How did Bathurst’s financial documents affect their argument?
The documents suggested that Bathurst initially agreed that selling 25,000 tonnes of thermal coal locally would trigger performance payments, contradicting their later stance.
What was the court’s view on Bathurst’s change of position?
The Supreme Court found that Bathurst’s initial conduct supported L&M’s interpretation, weakening Bathurst’s later argument about shipment requirements.
WHAT ARE THE GENERAL FACTS OF Bathurst
Bathurst bought mining assets from L & M Coal for $120 million:
$40 million deposit
$40 million on delivery
Remaining $40 million through performance payments.
What happened?
Delays occurred for years.
The coal market dropped.
Coking coal (most valuable) was depleted.
The mine shut down, so no performance payments were made.
