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James Hardie and Co Pty Ltd v Seltsam Pty Ltd

James Hardie and Co Pty Ltd v Seltsam Pty Ltd

Case [1997] NSWCA 164 26 September 1997

Negligence & Tort

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Court of Appeal

Supreme Court

New South Wales

Medium Neutral Citation: JAMES HARDIE AND CO PTY LTD v SELTSAM PTY LTD [1997] NSWCA 164
Decision date: 26 September 1997

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AGLC: James Hardie and Co Pty Ltd v Seltsam Pty Ltd [1997] NSWCA 164
Case: [1997] NSWCA 164
Decision Date: 26 September 1997

CaseChat Overview and Summary

In *James Hardie and Co Pty Ltd v Seltsam Pty Ltd* [1997] NSWCA 164, the New South Wales Court of Appeal considered an appeal concerning the liability of James Hardie and Co Pty Ltd (James Hardie) to Seltsam Pty Ltd (Seltsam) for contribution or indemnity. The dispute arose from a previous judgment where Seltsam was found liable to a third party for damages caused by asbestos products manufactured by James Hardie. Seltsam sought to recover these losses from James Hardie.

The primary legal issues before the Court of Appeal were whether James Hardie owed Seltsam a duty of care in relation to the supply of asbestos products, and if so, whether James Hardie had breached that duty. The court also had to determine whether there was a causal link between any breach by James Hardie and the loss suffered by Seltsam, and whether Seltsam was entitled to an indemnity or contribution from James Hardie.

The Court of Appeal, applying principles of negligence and indemnity, found that James Hardie had a duty to warn Seltsam of the dangers associated with the asbestos products it supplied. This duty arose from the relationship between the parties and the knowledge James Hardie possessed regarding the health risks of asbestos. The court held that James Hardie breached this duty by failing to adequately warn Seltsam, and this breach was a cause of Seltsam's liability to the third party. Consequently, the court concluded that Seltsam was entitled to an indemnity from James Hardie.

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Citations

James Hardie and Co Pty Ltd v Seltsam Pty Ltd [1997] NSWCA 164

Most Recent Citation

Wintle v Stevedoring Industry Finance Committee (No 2) [2002] VSC 294

Cases Citing This Decision

137

WJT v Trustees of the Marist Brothers; WXC3 v Trustees of the Marist Brothers; GAC v Trustees of the Marist Brothers (No 4) [2025] NSWSC 1017
Citation 1 (Para 10)

…o as to preserve the second defendant’s entitlement to pursue its claim for contribution: James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78.…
Ventia Utility Services Pty Ltd (ACN 010 725 247) (Formerly Known as Thiess Services Limited) v Electricity Networks Corporation T/As Western Power [No 3] [2024] WASC 179
Citation 2 (Para 5)

…nd the purpose of the legislation of which this Act is largely a stereotype, have been fully explained in James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 per Gaudron and Gummow JJ at 57 ‑ 58; 59 ‑ 61; and 64 ‑ 67 and per Kirby J at 69 ‑ 70 and 75 ‑ 80. As those passages explain, at common law, as disti…
AIG Insurance Ltd v Hanna [2024] NSWCA 91
Citation 3 (Para 1)

…not proved that he was liable to Mr Hasan, or that the settlement was not objectively reasonable: [68]. James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78 distinguished.…
Grain Technology Australia Ltd v Rosewood Research Pty Ltd (No 4) [2023] NSWSC 822
Citation 4 (Para 103)

…Arguably, they would have had standing to keep it alive pending final resolution of the proceedings (cf James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at [20]). This question was not however raised in argument (or at least squarely so) and I do not need to determine it.…
Dopudj v FDC Construction and Fitout Pty Limited [2023] NSWSC 110
Citation 5 (Para 52)

…Ltd v Seltsam Pty Ltd, [1] as well as Port of Melbourne Authority v Anshun Pty Limited [2] and Tomlinson v Ramsey Food Processing Pty Limited. [3] 1. (1998) 196 CLR 53; [1998] HCA 78. 2. (1981) 147 CLR 589; [1981] HCA 45. 3. (2015) 256 CLR 507; [2015] HCA 28.…
Zheng v Ianni and Ors (No.3) [2021] NSWDC 521
Citation 6 (Para 6)

…t those defendants, which thereafter precludes the Builders from seeking contribution against the Owners [2] . 2. James Hardie & Co v Seltsam Pty Ltd (1998) 196 CLR 53…
Moffett v Robin [2021] NSWDC 211
Citation 7

…son v McDonald's Australia Ltd [2014] NSWCA 162 James Hardie & Coy Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 Jamsek v ZG Operations Australia Pty Ltd [2020] FCAFC 119 Jurox Pty Ltd v Fullick [2016] NSWCA 180 Kondis v State Transport Authority (1984) 154 CLR 672 Lister v Romford Ice & Cold Storage Co…
Robinson v Kentz Pty Ltd [2020] WADC 163
Citation 8 (Para 5)

…In particular, on the authority of James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53, CBI says that the dismissal of the plaintiff's claim against it means that it is not 'a tortfeasor who is or would if sued have been liable in respect of the same damage' for the purpose of s 7 of the Contribution Act.…
Levi Jake Saunders by his Next Friend Claire Marie Matthews v Turner [2020] WADC 133
Citation 9 (Para 17)

…Elliott v Diener (1978) 21 ACTR 21, 22 (Blackburn J); Sergi [40]. [92] See generally: James Hardie & Coy Limited v Seltsam Pty Limited [1998] HCA 78; (1998) 196 CLR 53, 62 Gaudron & Gummow JJ); Wintle v Stevedoring Industry Finance Committee [2002] VSC 369 [10] - [23] (Ashley J).…
The Owners - Strata Plan No 87231 v 3A Composites GmbH (No 3) [2020] FCA 748
Citation 10 (Para 20)

…211) and as being “notorious for the conceptual and practical difficulties it engenders”: James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78 at [7]; see Rahul Arora, ‘Contribution between wrongdoers of mixed liability: Discerning the role of equity and statute’ (2018) 45 Australian Bar Re…
ML and BK Bush v Tyrepower Limited [2020] NSWDC 36
Citation 11 (Para 20)

…nd the mechanism for its enforcement are found in s5(2) LRMPA. The requirements should be kept distinct: James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at [24] per Gaudron and Gummow JJ.…
Wealth Psychology Pty Ltd at Trustee for the PRIVATE TRUST t/as Taxation Strategies & Accounting Services v Morhall [2019] WADC 149
Citation 12 (Para 2)

…aintiff's submissions at par 42 - par 42. [50] Plaintiff's submissions at par 44 - par 45, relying on James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53, 62.…
Zablotsky and Secretary, Department of Social Services (Social services second review) [2019] AATA 4367
Citation 13 (Para 14)

…en drawn to the defect. 87. Lord Diplock’s test has also been adopted in James Hardie & Coy Pty Ltd v Seltsam Pty Limited [1998] HCA 78 ; (1998) 196 CLR 53 at [73] (Kirby J) and Mills v Meeking [1990] HCA 6 ; (1990) 169 CLR 214 at 244 (McHugh J). It has many times been applied (directly or by application of McHugh J…
Masson v Parsons [2019] HCA 21
Citation 14 (Para 1)

…and Arbitration; Ex parte Barrett (1945) 70 CLR 141 at 165‑166 per Dixon J; [1945] HCA 50 and James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at 64‑65 [22]‑[24] per Gaudron and Gummow JJ; [1998] HCA 78. [28] Rizeq (2017) 262 CLR 1 at 36 [90] per Bell, Gageler, Keane, Nettle and Gordon JJ.…
CCA19 v Secretary, Department of Home Affairs [2019] FCA 946
Citation 15 (Para 6)

…on if its attention had been drawn to the defect. 87Lord Diplock’s test has also been adopted in James Hardie & Coy Pty Ltd v Seltsam Pty Limited (1998) 196 CLR 53 at [73] (Kirby J) and Mills v Meeking (1990) 169 CLR 214 at 244 (McHugh J). It has many times been applied (directly or by application of McHugh J in New…
Harford v Hallmark Construction Pty Ltd [2019] NSWSC 371
Citation 16 (Para 3)

…bility to prosecute its cross-claim against Copeland, thus avoiding the effect of the decision in James Hardie and Co v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78.…
Le v Brown, Nguyen v Brown; Tran v Brown; Monica v Brown; Huggett v Brown (No.2) [2019] NSWSC 88
Citation 17

…Mangarelli [2013] NSWCA 413; (2013) 65 MVR 480 Elbourne v Gibbs [2006] NSWCA 127 James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 Kondis v State Transport Authority [1984] HCA 61; (1984) 154 CLR 672 Le v Brown [2017] NSWSC 162 Le v Brown; Nguyen v Brown; Tran v Brown; Monica v Brown; Hugg…
Tanioria v Commonwealth of Australia (No 3) [2018] FCA 1623
Citation 18 (Para 30)

…(1)(c), with s 5(2), creates a claim for contribution which did not exist at common law – see: James Hardie & Coy Pty Limited v Seltsam Pty Limited (1998) 196 CLR 53. The claim for contribution is a cause of action which is independent of the cause of action which the injured party has or had against the tortfeasor…
Cuthbert v Moreton Bay Regional Council No. 2 [2018] QPEC 40
Citation 19

…3. Darwen & Anor v Pacific Reef Fisheries (Australia) Pty Ltd & Ors [2009] QPELR 262 James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53. Kingston v Keprose Pty Ltd (1987) 11 NSWLR 404. Loader v Moreton Bay Regional Council [2013] QCA 269. Newcastle City Council v GIO General Ltd (1997) 191 CLR 85. R v PL…
Damm v Coastwide Site Services Pty Ltd [2017] NSWSC 1361
Citation 20 (Para 51)

…In James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53, Callinan J at [98] describes the issue which in part falls for consideration on these Motions in this way:…
Credit Corp Services Pty Limited v Tang [2017] QDC 247
Citation 21 (Para 1)

…its widest sense ...”.[22] [20] Newcastle City Council v GIO General Ltd (1997) 191 CLR 85, 113; James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53, 82; R v Young (1999) 46 NSWLR 681, 687, 690, 740; R v PLV (2001) 51 NSWLR 736, 743-744; Ravenscroft v Nominal Defendant [2008] 2 Qd R 32, 51. [21] Alcan (NT…
Libra Collaroy Pty Ltd v Bhide [2017] NSWCA 196
Citation 22 (Para 279)

…authorities were cited for that submission nor, in response, did Elders address its legal merits. 122. James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78 (at [35]) per Gaudron and Gummow JJ; (at [80]) per Kirby J.…
Jaron Holdings Pty Limited v Amaca Pty Limited [2017] NSWDDT 4
Citation 23 (Para 37)

…fendant is just as effective to absolve it from liability as a judgment on the merits – James Hardie & Coy Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53.…
Gibbs v Haoma Mining NL [No 6] [2017] WADC 67
Citation 24 (Para 1)

…demnity against IAL had the effect of a formal judgment of the claim on its merits, citing James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 and Baxter v Obachelo Pty Ltd [2001] HCA 66. It was submitted that there were no grounds for setting aside the consent order and that the plaintiff w…
Power Rental Op Co Australia, LLC v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2017] NSWCA 8
Citation 25 (Para 87)

…ing as the determinative factor of whether regard may be had to extrinsic materials has been doubted (see James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53; [1998] HCA 78 at 76-7 (Kirby J in dissent, with whose judgment McHugh J agreed)). Basten JA in Shorten v David Hurst Constructions Pty Ltd (2008) 72…
DPP v Scheele [2016] ACTCA 23
Citation 26 (Para 1)

…McHugh JA); R v Young (1999) 46 NSWLR 681 at 687-688 [15]-[16] (per Spigelman CJ). As Kirby J put it in James Hardie and Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at 82 [73], “unless driven to the result by unyielding words, no judicial satisfaction is to be derived from concluding that the manifest target of l…
Teys Australia Beenleigh Pty Ltd v Australasian Meat Industry Employees Union (No 2) [2016] FCA 2
Citation 27

…ibution [2000] 1 WLR 586 at 592; [2000] 2 All ER 109 James Hardie & Coy Pty Ltd v Seltsam Pty Limited (1998) 196 CLR 53 Jones v Wrotham Park Estates [1980] AC 74 Kucks v CSR Limited (1996) 66 IR 182 Mills v Meeking (1990) 169 CLR 214 Newcastle City Council v GIO General Limited (1997) 191 CLR 85 Project Blue Sky Inc…
Ward v Butler T/as GUTTERSHIELD Australia [2015] WADC 66
Citation 28 (Para 3)

…that Monger House Pty Ltd is not a 'tortfeasor who is or would if sued have been liable': James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53.…
Kazas-Rogaris v Gaddam [2014] NSWSC 1465
Citation 29 (Para 1)

…This was not a situation such as was considered in James Hardie and Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 where another party was effectively shut out by entry of a judgment involving two other parties without the agreement of the affected party. Removing Mr Haj from the proceedings had no impact at all upo…
Allianz Australia Insurance Ltd v BlueScope Steel Ltd [2014] NSWCA 276
Citation 30

…East India Co (1787) 1 TR 638; 99 ER 1295 ICM Agriculture Pty Ltd v Perry [2002] NSWCA 257 James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 King v Caltex Petroleum Pty Ltd [2013] NSWDDT 4 Kodak (Australasia) Pty Ltd v Retail Traders Association [1942] SR (NSW) 231 Kweifio-Okai v RMIT Univ…
Smith v Marshall [2014] WASC 185
Citation 31

…NSWCA 38; (2003) 56 NSWLR 276 Harvey v John Fairfax Publications Pty Ltd [2005] NSWCA 255 James Hardie & Coy Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 Johnson v Gore Wood & Co (a firm) [2000] UKHL 65; [2002] 2 AC 1 Kenyon v Sabatino [2013] WASC 76 Lambert v Thomson [1937] OR 341 Lange v Australian B…
Prodanovich v Mukherjee [2013] NSWSC 1833
Citation 32 (Para 1)

…The High Court in James Hardie & Co v Seltsam Pty Ltd (1998) 196 CLR 53, made clear at [62] and [63], that another party to the proceedings was entitled to be notified and, if necessary, heard on any application for a judgment that would preclude that party from pursuing the Defendant against whom judgment was to be…
McMahon v Permanent Custodians Ltd [2013] NSWCA 275
Citation 33 (Para 18)

…islature with their own has been long recognised ( Thompson v Goold & Co [1910] AC 409 at 420 per Lord Mercy). In James Hardie & Co Pty Ltd v Seltsam (1998) 196 CLR 53 at [73] Kirby J said: In Jones v Wrotham Park Settled Estates [Lord Diplock] made it clear that, if the application of the literal or grammatical mea…
Bluescope Steel Limited v Allianz Australia Limited [2013] NSWDDT 3
Citation 34 (Para 1)

…Her views on this matter do not determine this issue, but the case of James Hardie v Seltsam (1998) 196 CLR 53 gives support to the view she expressed concerning the fact that there was no evidence to mount a cross claim.…
Perth Airport Pty Ltd v Ridgepoint Corporation Pty Ltd [2013] WASC 33
Citation 35

…ia Ltd v Metana Minerals NL (1991) 11 WAR 435 J C Williamson Ltd v Lukey (1931) 45 CLR 282 James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 Janssen‑Cilag Pty Ltd v Pfizer Pty Ltd (1992) 37 FCR 526 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; (2001) 210 CLR 181 McCourt v Cran…
Idameneo (No 123) Pty Ltd v Gross [2012] NSWCA 423
Citation 36 (Para 1)

…or did it found a right at general law). Campbell J's conclusion was supported by references to dicta in James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 and Austral Pacific Group Ltd (in liq) v Airservices Australia (2002) 203 CLR 136 (where it was observed that no right to contribution existed at com…
Newcrest Mining Ltd v Thornton [2012] HCA 60
Citation 37 (Para 6)

…[35][1971] 2 QB 651 at 657. [36][1962] NZLR 44. [37][1967] NILR 62 at 71 per Lord MacDermott LCJ, Curran LJ agreeing at 71, 79 per McVeigh LJ. [38](1998) 196 CLR 53; [1998] HCA 78. [39](1998) 196 CLR 53 at 65 [25] citing Brambles Construction Pty Ltd v Helmers (1966) 144 CLR 213 at 221; [1966] HCA 3.…
Mercedes Holdings Pty Ltd v Waters (No 6) [2012] FCA 1412
Citation 38 (Para 1)

…where the entry of the judgment would extinguish the claim of a remaining party against another party: see James Hardie Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at [19] – [20], [41] and [133]; see also Cockatoo Dockyards Pty Ltd v The Commonwealth of Australia [2001] NSWCA 468 at [23].…
Wardle v Agricultural and Rural Finance Pty Ltd (No 2) [2012] NSWCA 388
Citation 39 (Para 17)

…Consistency with James Hardie & Coy Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 would require, if an identical case were heard in New South Wales today, that the gas company have appealed against the judgment in favour of the mining company (at [20]). However, if that step were taken, it would be open…
Crump v New South Wales [2012] HCA 20
Citation 40 (Para 9)

…be seen as attracting the exercise of judicial power." [88](2004) 223 CLR 513 at 529 [32]‑[33]. [89] James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at 64‑65 [22]‑[24]; [1998] HCA 78.…
R v CB; MP v R [2011] NSWCCA 264
Citation 41

…ny v Pilbara Harbour Services Pty Limited (1986) 160 CLR 626, 670-2 per Brennan J and 679-80 per Deane J, James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53, 63 per Gaudron and Gummow JJ, Kelly v Newcastle Protective Coating Pty Ltd [1973] 2 NSWLR 45, 52-3, and Taren Point Bowling and Recreation Club v Sh…
Trust Co. Fiduciary Services Ltd v Hassarati [2011] NSWSC 577
Citation 42 (Para 1)

…hich, by virtue of the fact that it was by discontinuance, could not have been prevented by Mr Maait - Cf James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53) may only have been temporary. The issue is, therefore, whether as a matter of discretion, Mr Capogreco's expectation that he would no longer be a pa…
Shilkin v Homestead Furniture Nominees Pty Ltd [2011] WADC 7
Citation 43 (Para 2)

…d look at the impact of the default judgments on Mr Shilkin. Counsel refers to the High Court decision of James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53, a case involving consent judgments, to support its submission. Counsel for Mr Shilkin submits that when the Magistrates Court entered default judgme…
Orcher v Bowcliff Pty Ltd [2010] NSWSC 1346
Citation 44 (Para 4)

…mmence proceedings against it upon the basis of the principles most notably considered in James Hardie & Coy Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53. For the reasons that follow, I consider that the applications to join QBE are ill founded and should be dismissed with costs.…
Ward v Keet [No 4] [2010] WASC 268
Citation 45 (Para 1)

…hat the second defendant is not liable as a tortfeasor or otherwise in terms of s 7(1)(c): James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53.…
R v Byerley [2010] SASCFC 3
Citation 46 (Para 7)

…ach that a court should take to reading words into an Act.[22] [21] (1988) 15 NSWLR 292 at 302D-E. [22] James Hardie & Co Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 at 81-2 [73] per Kirby J.…
Nau v Kemp & Associates [2010] NSWCA 164
Citation 47

…) 69 James Hardie & Co Pty Ltd v Seltsam Pty Ltd [1998] HCA 78; (1998) 196 CLR 53 Jameson v Central Electricity Generating Board [1998] QB 323 Jameson v Central Electricity Generating Board [2000] 1 AC 455 John Holland (Constructions) Pty Ltd v Jordin (1985) 36 NTR 1 King v Hoare (1844) 13 M & W 494; 153 ER 206 Maho…
The Owners Strata Plan No. 64970 v Austruc Constructions Limited (No. 4) [2010] NSWSC 212
Citation 48

…Overseas Airways Corporation [1955] AC 169 Hart v Hall & Pickles Ltd [1969] 1 QB 405 James Hardie & Coy Pty Ltd v Seltsam Pty Limited [1998] HCA 78; (1998) 196 CLR 53 Kioa v West (1985) 159 CLR 550 Nicita v Owners of Strata Plan 64837 [2010] NSWSC 68 Seiwa Pty Ltd v Owners Strata Plan 35042 [2006] NSWSC 1157 The Ow…
Ahrens Engineering Pty Ltd v Leroy Palmer & Associates [2010] SASC 36
Citation 49 (Para 14)

…ion have been diminished by the later course of authority which admits of the sufficiency of at least some of those methods[7]. [3] (1998) 196 CLR 53 at [25]-[26]. [4] Brambles Constructions Pty Ltd v Helmers (1966) 114 CLR 213 at 221. [5] Brambles Constructions (1966) 114 CLR 213 at 221. [6] (1955) 92 CLR 200 at 21…
(re Jackson) BlueScope Steel Limited v Allianz Australia Limited [2010] NSWDDT 1
Citation 50

…flict; held that they were on a prima facie basis; this ground of defence held to be good CASES CITED: James Hardie & Coy Pty Ltd v Seltsam Pty Ltd (1998) 196 CLR 53 DATES OF HEARING: 15/02/2010 DATE OF JUDGMENT: 17 February 2010 LEGAL REPRESENTATIVES: Mr T G R Parker SC, instructed by Piper Alderman, appeared for t…

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