Litynski v Albion Steel Pty Ltd

In the Supreme Court of New South Wales Court of Appeal, Mr Litynski (the appellant) brought proceedings against Albion Steel Pty Ltd (the respondent) concerning a dispute arising from a contract for the supply of steel.

The primary legal issue before the Court of Appeal was whether the respondent had breached the contract by failing to supply steel of the specified quality and, if so, what damages were recoverable by the appellant. The court also considered whether the appellant had accepted the steel despite its alleged non-conformity with the contract.

The Court of Appeal found that the respondent had breached the contract by supplying steel that did not conform to the agreed specifications. However, the court held that the appellant had, by its conduct, accepted the non-conforming steel. Consequently, the appellant was not entitled to reject the goods or claim damages for breach of contract. The court applied principles of contract law relating to acceptance of goods and the consequences of such acceptance, including the loss of the right to reject.

The appeal was dismissed.