Hellyer Drilling Co v Macdonald Hamilton & Co Pty Ltd

Re: HELLYER DRILLING COMPANY
And: MACDONALD HAMILTON & CO. PTY. LIMITED
No. QLD. G37 of 1981
Trade Practices

COURT

IN THE FEDERAL COURT OF AUSTRALIA

QUEENSLAND DISTRICT REGISTRY
GENERAL DIVISION
Fitzgerald J.

CATCHWORDS

TRADE PRACTICES - statements made by respondent concerning a drilling rig's capacity material to applicant's decision as to the rig's suitability - applicant caused a company to purchase the rig from the respondent - applicant leased the rig from the company - certain statements inaccurate and in the circumstances were misleading or deceptive when made (sub-s. 52(1) of the Trade Practices Act) - claim under s.82 of the Act to recover loss or damage suffered - claim for damages for alleged breach of contract - assessment of damages under s.82 of the Act.

Trade Practices Act, ss. 52(1), 53(a) and (c), 82

HEARING

BRISBANE

#DATE 13:10:1983

ORDER

1. There be judgment for the applicant against the respondent for $36,000.00.

JUDGE1

The applicant claims under s.82 of the Trade Practices Act 1974 ("the Act") to recover loss or damage allegedly suffered by conduct of the respondent in contravention of ss. 52(1), 53(a) and 53(c) of the Act. Damages are also sought for alleged breach of contract. Interest is also claimed.

The applicant, which is a firm consisting of two companies controlled by Arthur Patrick Hellyer, carries on business in Australia as a drilling contractor. The respondent is a corporation within the meaning of the Act and carries on business in Australia as a supplier of drilling rigs and equipment under the name Seismic Supply International. The respondent is the agent in Australia for the distribution of Midway rotary drilling rigs and equipment manufactured by Midway Manufacturing and Supply Inc. of Odessa, Texas, U.S.A.

In 1980, the applicant's business consisted principally of coal exploration drilling but also included exploration drilling for other minerals and for water, and water bore drilling. In August or September 1980, the applicant had obtained a quote from the respondent for the supply of a Midway 10M drilling rig but had not purchased the rig. In late September 1980, a drilling rig owned by the applicant, a Bourne 1000R drilling rig, was destroyed by fire. At that time, a large amount of work was available in the drilling industry and suitable equipment was in heavy demand. The applicant required another drilling rig urgently. There was no suitable and suitably priced drilling rig available in Australia within an acceptable period. However, a Midway 13M drilling rig was in transit by sea to the respondent from the United States of America.

A Midway 13M drilling rig consists of items manufactured by Midway Manufacturing and Supply Inc., such as the frame, the mast, the rotary table, the draw works, and the chain case, and components made by other specialist manufacturers, for example, the compressor, the mud pump, and the clutches. Such drilling rigs are truck mounted for exploration drilling. The truck both is the vehicle for transportation of the rig and provides power for the operation of the…