Bennett v Goodwin

Bennett v Goodwin involved a dispute concerning the measure of damages for conversion of goods. The plaintiff, Bennett, claimed that the defendant, Goodwin, had converted his goods by selling them. The case was heard in the Supreme Court of Victoria. The plaintiff sought to recover the full sale price of the goods, minus any selling agent's commission and GST, as the measure of his damages. The defendant argued that only the net proceeds after deducting these costs should be considered in assessing the damages.

The central legal issues before the court were whether the selling agent's commission and GST payable on the sale should be deducted from the sale price in determining the measure of damages for conversion. Additionally, the court had to decide at what point in time the damages should be assessed. The plaintiff argued for the full sale price at the time of conversion, while the defendant contended for the net proceeds after deducting costs and taxes at the time of sale.

In its reasoning, the court held that the measure of damages for conversion is the market value of the goods at the time and place of conversion. The court found that neither the selling agent's commission nor the GST should be deducted from the sale price in assessing the damages. The court emphasised that the purpose of damages in conversion is to place the plaintiff in the same position as if the conversion had not occurred, and this required the full sale price to be considered. Furthermore, the court ruled that the damages should be assessed as at the time of conversion, not the time of sale. The court concluded that Bennett was entitled to recover the full sale price of the goods at the time of conversion.

The final orders of the court were that Bennett was to receive damages equal to the full sale price of the goods at the time of conversion, without any deductions for selling agent's commission or GST. The damages were to be assessed as of the date the goods were converted.