Hill v Reglon Pty Ltd

The appeal concerned a dispute between the bailor, Hill, and the bailee, Reglon Pty Ltd, regarding the on-hire of goods. The primary issue was whether Reglon's actions constituted a breach of the bailment contract and, if so, what remedies were available to Hill.

The court was required to determine whether Reglon's actions in providing the bailed goods to a third party for on-hire were repugnant to the terms of the bailment agreement, thereby entitling Hill to immediate possession. Further, the court considered whether the goods had been mixed with those of a third party in a manner that would render them indistinguishable, and if so, how this affected ownership. The court also examined the principles of conversion in tort, specifically whether Reglon's dealings with the goods were inconsistent with Hill's rights and whether the damages for conversion should be the full value of the converted goods. Finally, the court addressed the procedural question of whether a cause of action that accrued after proceedings commenced could be substituted by amendment.

The court reasoned that the bailment contract did not exclude common law remedies, and that Reglon's act of providing the goods to a third party for on-hire was inconsistent with the terms of the bailment, entitling Hill to immediate possession. The court found that the goods had not been mixed in a way that would create a tenancy in common. Regarding conversion, the court held that dealing with goods inconsistently with the owner's rights, with the intention of denying those rights or asserting an inconsistent right, constituted conversion, and that the damages for conversion were ordinarily the full value of the goods. The court also confirmed that amendments to substitute a cause of action accruing after proceedings commenced were permissible under section 64 of the Civil Procedure Act 2005 (NSW).

The appeal was dismissed with costs, and the amended notice of cross-appeal was allowed in part, with costs. The parties were ordered to bring in short minutes of order within seven days to accord with the reasons.