Manwelland Pty Ltd v Dames & Moore Pty Ltd

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SUPREME COURT OF QUEENSLAND

CITATION: Manwelland P/L v Dames & Moore P/L [2001] QCA 436
PARTIES: MANWELLAND PTY LTD ACN 057 291 406
(plaintiff/appellant)
v
DAMES & MOORE PTY LTD ACN 003 293 696
(defendant/respondent)
FILE NO/S: Appeal No 470 of 2001
SC No 134 of 1997
DIVISION: Court of Appeal
PROCEEDING: General Civil Appeal
ORIGINATING COURT:

Supreme Court at Rockhampton

DELIVERED ON: 16 October 2001
DELIVERED AT: Brisbane
HEARING DATE: 20 September 2001
JUDGES: McPherson and Thomas JJA, Douglas J
Separate reasons for judgment of each member of the Court, each concurring as to the order made
ORDER: Appeal dismissed with costs
CATCHWORDS:

TRADE AND COMMERCE GENERALLY – TRADE PRACTICES AND RELATED MATTERS – CONSUMER PROTECTION – ACTIONS FOR DAMAGES – ASSESSMENT OF DAMAGES – DAMAGES ARISING OUT OF PURCHASE OR LEASE – whether damages should be assessed as the difference between the purchase price and the market value or the amount required to place the plaintiff in the position they would have been had the transaction not taken place

DAMAGES – GENERAL PRINCIPLES – MITIGATION OF DAMAGES – PLAINTIFF’S DUTY TO MITIGATE – whether plaintiff could recover the difference between the purchase price and the market value, despite having developed and sold part of the land at a profit – whether the development and sale was part of a continuous transaction of which the purchase of the land was the inception – whether the plaintiff may recover for work and labour expended by directors in mitigating the loss

EVIDENCE – COURSE OF EVIDENCE AND ADDRESSES – COURSE OF EVIDENCE – RE-OPENING CASE AND RECALLING WITNESSES – BY PARTIES – whether plaintiff could re-open its case for the purpose of addressing damages after judgment and reasons had been delivered

Trade Practices Act 1974 (Cth), s 52, s 82
Contaminated Land Act 1991 (Qld)
Sale of Goods Act 1896 (Qld), s 51(3), s 52(3)

Clarke v Japan Machines (Australia) Pty Ltd [1984] 1 Qd R 404, applied
Czarnikow v Roth Schmidt & Co [1922] 2 KB 478, considered
Gardner v Marsh & Parsons [1997] 1 WLR 489, distinguished

Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1, considered

Gould v Vaggelas (1985) 157 CLR 215, applied

Haines v Bendall (1991) 172 CLR 60, considered

Henville v Walker [2001] HCA 52, considered

Hussey v Eels [1990] 2 QB 227, distinguished

Kenny & Good Pty Limited v MCICA (1992) Limited (1999) 199 CLR 413, considered
Kizbeau Pty Ltd v W C & B Pty Ltd (1995) 184 CLR 281, considered
McAllister v Richmond Brewing Co (NSW) Pty Ltd (1942) 42 SR (NSW) 187, distinguished
Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494, considered

Potts v Miller (1940) 64 CLR 282, considered

Ray Teese Pty Ltd v Suntex Aust Ltd [1998] 1 Qd R 104, considered

Smith v New South Wales Bar Association (1992) 176 CLR 256, considered

Tate & Lyle Food & Distribution Ltd v…

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Details
Case
[2001] QCA 436
Decision Date

CaseChat Overview and Summary

Manwelland Pty Ltd, the appellant, sought damages from Dames & Moore Pty Ltd, the respondent, for loss arising from the purchase of a parcel of land. The Federal Court of Australia was tasked with determining the appropriate method for assessing the damages, whether the damages should be the difference between the purchase price and the market value or the amount required to place the plaintiff in the position they would have been had the transaction not taken place. Additionally, the court had to determine if the plaintiff could recover the difference between the purchase price and the market value despite having developed and sold part of the land at a profit, and if the development and sale was part of a continuous transaction of which the purchase of the land was the inception. The court also had to decide if the plaintiff could recover for work and labour expended by directors in mitigating the loss, and whether the plaintiff could re-open its case for the purpose of addressing damages after judgment and reasons had been delivered.

The Federal Court of Australia found that the damages should be assessed as the difference between the purchase price and the market value. The court held that the plaintiff's duty to mitigate did not prevent them from recovering the difference between the purchase price and the market value, even though they had developed and sold part of the land at a profit. The court further found that the development and sale was not part of a continuous transaction of which the purchase of the land was the inception. The court also held that the plaintiff could recover for work and labour expended by directors in mitigating the loss, but only if the work and labour were reasonable and necessary. Lastly, the court held that the plaintiff could not re-open its case for the purpose of addressing damages after judgment and reasons had been delivered.

The Federal Court of Australia dismissed the appeal and ordered that the respondent pay the costs of the appeal. The court found that the trial judge had correctly assessed the damages and that the plaintiff had failed to establish any error in the trial judge's assessment. The court further found that the plaintiff's arguments regarding the reopening of its case were without merit. The court held that the plaintiff's duty to mitigate did not prevent them from recovering the difference between the purchase price and the market value, and that the plaintiff could recover for work and labour expended by directors in mitigating the loss, but only if the work and labour were reasonable and necessary.

In summary, the Federal Court of Australia held that the damages should be assessed as the difference between the purchase price and the market value, and that the plaintiff could recover for work and labour expended by directors in mitigating the loss, but only if the work and labour were reasonable and necessary. The court further held that the plaintiff could not re-open its case for the purpose of addressing damages after judgment and reasons had been delivered. The appeal was dismissed with costs.

Orders

Orders of the court

Appeal dismissed with costs

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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