Marvoe Management Pty Ltd t/as the Sweet Life v Plantation Management Services (WA) Pty Ltd (No 5)

Case [2017] NSWSC 1167


Supreme Court


New South Wales

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Medium Neutral Citation: Marvoe Management Pty Ltd t/as The Sweet Life v Plantation Management Services (WA) Pty Ltd (No 5) [2017] NSWSC 1167
Hearing dates:5-9, 12, 16, 19-20 September 2016
Date of orders: 01 September 2017
Decision date: 01 September 2017
Jurisdiction:Common Law
Before: Campbell J
Decision:

Judgment for the plaintiff in the sum of $1,112,825;
The first and second defendants to pay the plaintiff’s costs;
I direct the parties to bring short minutes of order calculating pre-judgment interest to be added to the judgment by arrangement with my associate;
Liberty to apply in respect of arithmetical errors.

Catchwords:

CONTRACTS – Whether contract for sale of goods or bailment for labour and works – Where plaintiff supplied watermelon seeds and defendant supplied seedlings – Where watermelon plants developed “Fusarium wilt” infection – Held to be contract for sale of goods

CONTRACTS – Breach of contract – Forms of breach – Breach of conditions implied under Sale of Goods Act 1972 (NT)

CONTRACTS – Implied terms – Terms implied – Fitness for purpose – Merchantable quality

CONTRACTS – Remedies – Damages for breach of contract – Held that plaintiff took reasonable steps to mitigate its loss
Legislation Cited: Civil Procedure Act 2005 (NSW)
Sale of Goods Act 1923 (NSW)
Sale of Goods Act 1972 (NT)
Sale of Goods Act 1979 (UK)
The Sale of Goods Act 1893 (56 & 57 Vict. c.71)
Cases Cited: Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd (1976) 1 WLR 676; [1976] 2 All ER 552
Angel v Hawkesbury City Council [2008] NSWCA 130; (2008) Aust Torts Reports ¶81 – 955
Associated Alloys Pty Ltd v Metropolitan Engineering and Fabrication Pty Ltd & anor (1996) 20 ACSR 205
Associated Alloys Pty Ltd v Metropolitan Engineering and Fabrication Pty Ltd & anor (1998) 16 ACLC 1633
Associated Alloys Pty Limited v CAN 001 452 106 Pty Ltd (2000) 202 CLR 588; [2000] HCA 25
Blacktown City Council v Hocking [2008] NSWCA 144
Borden (UK) Limited v Scottish Timber Products Limited [1981] Ch 25; [1979] 3 All ER 961
BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266
Bradshaw v McEwans Pty Ltd (Unreported, 27 April 1951)
C. Van Der Lely N.V. v Bamfords Limited [1963] RPC 61
Caltex Oil (Australia) Pty Ltd v The Dredge “Willemstad” (1976) 136 CLR 529
Cammell Laird & Co Ltd v The Manganese Bronze and Brass Co Ltd [1934] AC 402
Chapman Bros v Verco Bros & Co Ltd (1933) 49 CLR 306
Christopher Hill Ltd v Ashington Piggeries Ltd [1972] AC 441
Clough Mill Ltd v Martin [1985] 1 WLR 111
Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337
Entores Limited v Miles Far East Corporation [1955] 2 QB 327
GK Serigraphics v Dispro Limited (Unreported, EWCA Civ, Cumming-Bruce LJ, 15 December 1980)
Grant v Australian Knitting Mills Limited [1936] AC 85
Holloway v McFeeters (1956)…
Details
AGLC
Marvoe Management Pty Ltd t/as the Sweet Life v Plantation Management Services (WA) Pty Ltd (No 5) [2017] NSWSC 1167
Case
[2017] NSWSC 1167
Decision Date

CaseChat Overview and Summary

The case involved a dispute between Marvoe Management Pty Ltd, trading as the Sweet Life, and Plantation Management Services (WA) Pty Ltd. The plaintiff claimed that the defendant had breached a contract for the sale of watermelon seedlings, which subsequently developed a "Fusarium wilt" infection. The dispute was heard and determined by the Northern Territory Magistrates Court. The primary legal issues that the court needed to address were whether the agreement between the parties constituted a contract for the sale of goods or a bailment for labour and works, and if the defendant had breached the contract, what remedies were available to the plaintiff.

The court first considered whether the agreement between the parties was a contract for the sale of goods or a bailment for labour and works. It held that the transaction was a contract for the sale of goods, as the plaintiff supplied watermelon seeds and the defendant supplied seedlings. The court further found that the defendant breached the contract by supplying seedlings that were not of merchantable quality and not fit for the purpose for which they were sold. The court considered that the implied terms of fitness for purpose and merchantable quality under the Sale of Goods Act 1972 (NT) had been breached. The court also noted that the plaintiff had taken reasonable steps to mitigate its loss, which was a relevant factor in determining the damages to be awarded.

The court held that the defendant was liable for breach of contract and ordered it to pay damages to the plaintiff. The court assessed the amount of damages based on the loss suffered by the plaintiff due to the breach. The court considered the costs incurred by the plaintiff in attempting to mitigate its loss and the profits lost due to the breach. The court awarded damages to the plaintiff, which included the costs of replacing the infected seedlings and the lost profits. The court also ordered the defendant to pay interest on the amount of damages from the date of the breach until the date of judgment.

Orders

Orders of the court

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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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