Camide Pty Ltd v PGH Ltd

Camide Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's claim for damages arising from alleged breaches of contract by PGH Ltd (the respondent), relating to the supply of bricks.

The primary legal issues before the Court of Appeal were whether the respondent had breached its contractual obligations to supply bricks of a particular quality and whether the appellant had accepted the bricks supplied, thereby waiving any right to claim damages for non-conformity. The court also considered the proper measure of damages in the event of a breach.

The Court of Appeal, applying principles of contract law, found that the respondent had breached the contract by supplying bricks that did not conform to the agreed specifications. The court rejected the argument that the appellant had accepted the bricks, finding that the appellant had acted reasonably in attempting to use the bricks and had not waived its rights. The court affirmed that damages should be assessed on the basis of putting the appellant in the position it would have been in had the contract been performed, which included the cost of rectifying the defects.

The appeal was allowed, and the matter was remitted to the Supreme Court for assessment of damages.