Jacap Low Loaders v Lindores Plant and Equipment

Jacap Low Loaders Pty Ltd (Jacap) appealed to the New South Wales Court of Appeal against a decision of the primary judge that found it liable for damage to a trailer it had bailed from Lindores Plant and Equipment Pty Ltd (Lindores). The dispute concerned the extent of Jacap's liability for damage that occurred to the trailer while it was in Jacap's possession.

The central legal issue before the Court of Appeal was whether Jacap, as a bailee, had discharged its onus of proving that the damage to the trailer occurred without its fault. Specifically, the court considered whether it was sufficient for Jacap to demonstrate that it was not negligent in relation to each of several possible causes of the damage individually, even if the precise cause of the damage remained unestablished.

The Court of Appeal affirmed the primary judge's finding that Jacap had failed to discharge its burden of proof. The court reasoned that where the cause of damage to bailed goods is not established, a bailee cannot discharge its onus by merely showing that it was not negligent in relation to each potential cause considered in isolation. Instead, the bailee must demonstrate that the damage occurred without its fault, which requires establishing a positive case that the damage arose from a cause for which it was not responsible. The court found that Jacap had not presented sufficient evidence to establish such a positive case, leaving the cause of the damage uncertain and therefore within the scope of Jacap's responsibility as bailee.

The appeal was dismissed, and Jacap was ordered to pay Lindores' costs.