Big Screen Video Pty Ltd v Pyramid Circle Holdings Pty Ltd T/a LED Sign Supply

Big Screen Video Pty Ltd (the plaintiff) brought proceedings against Pyramid Circle Holdings Pty Ltd T/a LED Sign Supply (the defendant) in the Supreme Court of Queensland. The dispute concerned the plaintiff's claim for damages for breach of contract, arising from the defendant's alleged failure to supply and install a large LED screen in accordance with the terms of an agreement between the parties. The plaintiff sought to recover the costs it incurred in engaging a third party to rectify defects in the screen and for consequential losses.

The central legal issues before the Court were whether the defendant had breached the contract by failing to supply an LED screen that was fit for its intended purpose and of merchantable quality, and if so, what damages were recoverable by the plaintiff. Specifically, the Court had to determine if the defects in the screen were substantial enough to constitute a breach of the implied warranties under the *Sale of Goods Act 1896* (Qld), and whether the plaintiff had adequately mitigated its losses.

Justice Thompson found that the defendant had breached the contract. His Honour held that the LED screen supplied was not of merchantable quality nor fit for the particular purpose for which it was required, as evidenced by the numerous defects that rendered it unusable for its intended display functions. The Court applied the principles of contract law regarding implied warranties of quality and fitness for purpose, as well as the duty of a plaintiff to mitigate its damages. His Honour concluded that the plaintiff had acted reasonably in engaging a third party to rectify the defects and was entitled to recover the costs associated with these repairs, along with certain consequential losses. The Court ordered that the defendant pay the plaintiff damages to be assessed.