M and a Pharmachem Limited v Laderma Pty Ltd

The case involved a dispute between M and a Pharmachem Limited, the plaintiff, and Laderma Pty Ltd, the first defendant, with an additional involvement from Derma Pty Ltd, the second defendant. The central issue arose from a terminated distribution agreement, wherein the plaintiff sought the return of a 50% advance for two orders that were cancelled following the termination. The first defendant argued that the plaintiff had consented to the assignment of the contract to the second defendant, into whose bank account the advance payments were made. The dispute turned on whether the plaintiff's contract was with the first or second defendant at the time of termination, whether the payments were made under a mistake of fact, and whether there was consent to the assignment. Additionally, there were arguments regarding express or implied novation, conventional estoppel, and total failure of consideration.

The court examined the nature of the contractual relationship and whether there was an express or implied consent to the assignment of the contract from the first to the second defendant. The court found that the plaintiff's contract was with the first defendant and not the second, and that there was no valid assignment or consent to the assignment. The payments were made under a mistake of fact, and there was no implied novation or estoppel. The court also dismissed the defendants' cross-claim for loss of profits, finding issues with causation and the plaintiff's alleged failure to provide a complete inventory of unsold goods.

The judgment ruled in favour of the plaintiff, awarding €99,607.44 plus interest. The cross-claim by the defendants was dismissed, and they were ordered to pay the plaintiff's costs. The court also granted liberty to the parties to bring in Short Minutes of Order for the agreed judgment sum and interest, and to apply for costs within 28 days. Exhibits were to be retained for 28 days. Applications to amend the pleadings by both parties were refused, as was an application by the defendants to amend the defence and cross-claim during the hearing and submissions.