McMullin v ICI Australia

This case involves a claim for damages brought by the McMullin family and others against ICI Australia and related companies, as well as the States of New South Wales and Queensland, relating to the contamination of cattle by the insecticide Helix, which contained the active ingredient chlorfluazuron (CFZ). The applicants claim that ICI was negligent in the development and marketing of Helix, that ICI breached sections of the Trade Practices Act and Fair Trading Act, and that the States were negligent in approving the registration of Helix and making representations about the suitability of cotton gin trash as a stock feed.

The court held that ICI owed a duty of care to certain claimants whose cattle became contaminated by CFZ during their ownership, those who purchased contaminated cattle, meat processors and exporters who owned contaminated meat, and feed lot owners who incurred costs holding contaminated cattle. However, ICI did not owe a duty of care to others who suffered losses due to the contamination crisis but were not directly affected by it. The court found ICI breached its duty of care by marketing Helix without adequate research into its environmental impact and failure to warn of its risks. The claim for exemplary damages was rejected.

The court dismissed the applicants' negligence claims against New South Wales and Queensland, finding the decisions to grant clearance and register Helix were policy decisions unsuitable for judicial resolution. The court also dismissed the Fair Trading Act claim against New South Wales, finding the representations about cotton trash were not made in the course of carrying on a business.

The proceeding was dismissed as against the two States, along with all cross-claims filed by them. The case will continue against ICI in respect of the negligence claims. A further directions hearing was set for July 29, 1997.