Hurford Hardwood Kempsey Pty Ltd v Kempsey Timbers (Sawmilling) Pty Ltd

The parties involved in this case were Hurford Hardwood Kempsey Pty Ltd, the purchaser, and Kempsey Timbers (Sawmilling) Pty Ltd, the vendor. The dispute centred around the sale of a timber mill, specifically regarding the volume of unprocessed stock present and the purchaser's liability for the long service leave entitlements of the mill employees. The case was heard in the Supreme Court of New South Wales. The court was tasked with determining whether there had been a breach of contract and, if so, what the consequences of that breach would be, including the right to damages.

The central legal issues the court had to resolve were whether the contract had been varied to postpone the date on which the purchase price adjustment was to be made, the actual volume of unprocessed stock present at the time of sale, and whether the vendor had agreed to account for the difference in the long service leave entitlements. Additionally, the court needed to decide whether the vendor had suffered damage due to the purchaser's denial of access to information on a server at the mill for a week after completion.

The court found that there had been a breach of contract by the purchaser, as the contract had not been varied to postpone the date for the purchase price adjustment. The court determined the actual volume of unprocessed stock and found that the purchaser had understated the long service leave liabilities. The court also found that the vendor had not agreed to account for the difference in these liabilities. Finally, the court concluded that the vendor had suffered damage due to the purchaser's denial of access to the server. The court awarded damages to the vendor for the breach of contract.

In conclusion, the court ordered Hurford Hardwood Kempsey Pty Ltd to pay damages to Kempsey Timbers (Sawmilling) Pty Ltd for the breach of contract. The precise amount of damages was not specified in the text, but it was determined that the purchaser had breached the contract in several respects, including the purchase price adjustment, the volume of unprocessed stock, and the long service leave liabilities. The court also found that the purchaser's denial of access to the server caused damage to the vendor.