Kewside Pty Ltd v Warman International Ltd

Kewside Pty Ltd, the applicant, appealed against the assessment of damages awarded by French J in proceedings based on s.52 of the Trade Practices Act, 1974. Kewside alleged that Warman International Ltd made false representations regarding the use and condition of a compressor, leading Kewside to purchase it for use in drilling operations. The trial judge found liability established, a finding not contested by Warman. Kewside claimed damages based on lost profit opportunities and actual losses, which the trial judge assessed differently.

The court had to decide whether the trial judge's approach to assessing Kewside's damages was correct. Kewside argued that the trial judge did not adequately consider the impact of the faulty compressor on its operations and profitability. The court reviewed the trial judge's assessment of Kewside's lost profit opportunities and actual losses, considering other contributing factors to Kewside's financial difficulties.

The court found that the trial judge's assessment of Kewside's lost profit opportunity was too low, given the significant impact of the faulty compressor on Kewside's operations. The court increased the damages for lost profit opportunities to $133,347.50. For Kewside's actual operating loss, the court upheld the trial judge's assessment of $3,707. Regarding Kewside's claim for the value of items rendered useless or disposed of, the court awarded 15% of the claimed amount, amounting to $8,229.70. The court also adjusted the interest period and rate for the awarded damages. The court found no merit in Kewside's complaints about the cross-claim and adjusted the costs order accordingly.

The court allowed the appeal in part, amended the damages award to $191,738, adjusted the costs order, and ordered Warman to pay Kewside's costs of the appeal.