A1 Chemicals Pty Limited v Loremo Pty Limited

A1 Chemicals Pty Limited appealed to the Court of Appeal of New South Wales against findings of fact made by a primary judge in proceedings brought by Loremo Pty Limited. The dispute concerned a claim by Loremo against A1.

The Court of Appeal was required to determine whether the primary judge had erred in accepting witness evidence that was not supported by primary documents, and whether the appeal should be allowed on points not taken below or in written submissions.

The Court of Appeal found that the primary judge had impermissibly relied on unchallenged witness evidence that lacked corroboration from primary documents. The Court held that while unchallenged evidence could be accepted, it must be rationally accepted, and in this instance, the evidence was not capable of being rationally accepted without documentary support. The Court also considered the submissions made on appeal that had not been raised in the court below, noting that such submissions could be entertained in exceptional circumstances.

The appeal was allowed, the primary judge's order was set aside, and judgment was entered for Loremo in the sum of $199,923.59. A1 was ordered to pay the costs of the appeal.