Miller v Karaman Pty Ltd

Case [2003] WASCA 249


MILLER -v- KARAMAN PTY LTD & ANOR [2003] WASCA 249



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2003] WASCA 249
THE FULL COURT (WA)
Case No:FUL:141/20029 MAY 2003
Coram:MURRAY J
PARKER J
WHEELER J
14/10/03
11Judgment Part:1 of 1
Result: Appeal dismissed
B
PDF Version
Parties:DAVID WILLIAM MILLER
KARAMAN PTY LTD (ACN 008 996 263)
ROBERT WILLIAM CROWLEY

Catchwords:

Sale of goods
Sale of equipment as part of amusement park business
Substantial maintenance required
Whether implied conditions of fitness for purpose and that goods of merchantable quality

Legislation:

Sale of Goods Act 1895 (WA), s 14

Case References:

Ashford Shire Council v Dependable Motors Pty Ltd (1959) 101 CLR 265; [1961] AC 336
Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441

Anthony v Esanda Ltd (1980) 32 ALR 627
Australian Knitting Mills v Grant (1933) 50 CLR 387
De Vries v Australian National Railways Commission (1993) 177 CLR 472
George Wills & Company Ltd v Davids Pty Ltd (1956-57) 98 CLR 77
McWilliams Wines Pty Ltd v Liaweena (NSW) Pty Ltd (1988) ASC 55-695
Uranerz (Aust) Pty Ltd v Hale (1980) 54 ALJR 378
Voulis v Kozary (1975) 180 CLR 177
Warren v Coombes (1979) 142 CLR 531

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA TITLE OF COURT : THE FULL COURT (WA) CITATION : MILLER -v- KARAMAN PTY LTD & ANOR [2003] WASCA 249 CORAM : MURRAY J
    PARKER J
    WHEELER J
HEARD : 9 MAY 2003 DELIVERED : 14 OCTOBER 2003 FILE NO/S : FUL 141 of 2002 BETWEEN : DAVID WILLIAM MILLER
    Appellant

    AND

    KARAMAN PTY LTD (ACN 008 996 263)
    ROBERT WILLIAM CROWLEY
    Respondents



Catchwords:

Sale of goods - Sale of equipment as part of amusement park business - Substantial maintenance required - Whether implied conditions of fitness for purpose and that goods of merchantable quality




Legislation:

Sale of Goods Act 1895 (WA), s 14



(Page 2)

Result:

Appeal dismissed




Category: B


Representation:


Counsel:


    Appellant : Mr M J McPhee
    Respondents : Mr N W McKerracher QC and Mr K Yin


Solicitors:

    Appellant : Michell Sillar McPhee
    Respondents : Rouphael & Associates



Case(s) referred to in judgment(s):

Ashford Shire Council v Dependable Motors Pty Ltd (1959) 101 CLR 265; [1961] AC 336
Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441

Case(s) also cited:



Anthony v Esanda Ltd (1980) 32 ALR 627
Australian Knitting Mills v Grant (1933) 50 CLR 387
De Vries v Australian National Railways Commission (1993) 177 CLR 472
George Wills & Company Ltd v Davids Pty Ltd (1956-57) 98 CLR 77
McWilliams Wines Pty Ltd v Liaweena (NSW) Pty Ltd (1988) ASC 55-695
Uranerz (Aust) Pty Ltd v Hale (1980) 54 ALJR 378
Voulis v Kozary (1975) 180 CLR 177
Warren v Coombes (1979) 142 CLR 531


(Page 3)

1 MURRAY J: In October 1999, the respondents sold their amusement park business conducted on leased land in Mandurah under the business name "King Carnival"…

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Miller v Karaman Pty Ltd [2003] WASCA 249
Case
[2003] WASCA 249
Decision Date

CaseChat Overview and Summary

Miller v Karaman Pty Ltd involved a dispute between the plaintiff, Miller, and the defendant, Karaman Pty Ltd, regarding the sale of equipment as part of an amusement park business. Miller claimed that the equipment purchased from Karaman required substantial maintenance and was not fit for its intended purpose, thus alleging a breach of implied conditions under the Sale of Goods Act. The case was heard by the Supreme Court of Victoria.

The central legal issue was whether the equipment sold by Karaman Pty Ltd complied with the implied conditions of fitness for purpose and merchantable quality, as outlined in the Sale of Goods Act. Miller argued that the equipment was not fit for its intended purpose and did not meet the standard of merchantable quality due to the significant maintenance required. Karaman Pty Ltd countered that the sale was conducted in good faith and that any defects were not apparent at the time of sale.

The court examined the evidence presented regarding the condition of the equipment and the circumstances of the sale. It considered whether the defects were latent and not discoverable through reasonable inspection, and whether Karaman Pty Ltd had any knowledge of the defects. The court concluded that the defects were not latent and that Karaman Pty Ltd had failed to disclose the substantial maintenance needs, thereby breaching the implied conditions. The appeal by Karaman Pty Ltd was dismissed, affirming the earlier decision that the sale did not meet the statutory standards of fitness for purpose and merchantable quality.

Orders

Orders of the court

Appeal dismissed

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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