Bartonvale Management Services Pty Ltd v International Linen Services Pty Ltd

Bartonvale Management Services Pty Ltd, the plaintiff, sued International Linen Services Pty Ltd, the defendant, for breach of contract. The plaintiff supplied laundry services to the defendant's nursing home under a contract that ran from December 1996 to December 1999. The defendant terminated the contract early, and the plaintiff claimed damages for the early termination. The District Court found in favour of the plaintiff and awarded damages of $122,600.

The appeal before the court focused on the quantum of damages awarded to the plaintiff. The court needed to decide whether the District Court's approach to calculating the damages was correct and whether the amount awarded was appropriate. The court also needed to consider whether the plaintiff's evidence about the lost gross profit and interest was sufficient to support the award of damages.

The court found that the District Court's approach to calculating damages was broadly correct, but that the estimate of revenue lost should be reduced by 20%. The court considered that a reduction of 5% was a reasonable allowance to cover both items considered under this head. The court concluded that the appropriate amount of damages, before allowing for interest, was approximately $90,000. The court allowed the appeal, set aside the judgment for the plaintiff, and ordered that there be substituted a judgment for the plaintiff in the sum of $96,000 inclusive of interest.