Australian Timber and Trusses Pty Ltd v T&M Buckley Pty Ltd

Australian Timber and Trusses Pty Ltd brought an action against T&M Buckley Pty Ltd, alleging that T&M Buckley Pty Ltd had breached a contract for the supply of timber trusses and frames for residential housing. Australian Timber and Trusses sought the total of unpaid invoices together with associated storage and handling costs as damages for breach of contract. T&M Buckley argued that it had not repudiated the contract but merely suspended performance, and that Australian Timber and Trusses had not mitigated its losses by finding another buyer for the undelivered trusses and frames. T&M Buckley also argued that Australian Timber and Trusses had supplied defective timber trusses and frames and that it was not liable to pay for unlicensed building work performed by Australian Timber and Trusses.

The court found that T&M Buckley had repudiated the contract by instructing Australian Timber and Trusses to cease deliveries of trusses and frames, and that the contracts between the parties did not contain a suspension clause. The court found that Australian Timber and Trusses had not failed to mitigate its losses by failing to find another buyer for the undelivered trusses and frames. The court found that the defects in the trusses and frames were more likely caused by defective timber supplied by Australian Timber and Trusses rather than poor installation. The court found that the second defendant was liable for some or all of the amounts claimed by Australian Timber and Trusses under the guarantee.

The court ordered that T&M Buckley pay Australian Timber and Trusses $605,881.20, that the second defendant pay Australian Timber and Trusses $360,384.74, that the counterclaim be dismissed, and that Australian Timber and Trusses be entitled to a charge over any real property of T&M Buckley to secure the debt under the plaintiff’s judgement against T&M Buckley.