James Hardie and Co Pty Ltd v Seltsam Pty Ltd

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.