Mistral International Pty Ltd v Polstead Pty Ltd

Mistral International Pty Ltd (the appellant) appealed to the Court of Appeal of New South Wales against a judgment of Judge Naughton in the District Court. The dispute concerned the sale of goods, specifically whether the goods were of merchantable quality.

The primary legal issue before the Court of Appeal was whether Judge Naughton had erred in rejecting expert evidence tendered by the appellant. The court also considered whether the judge's reasons for rejecting the evidence were insufficient and whether there was an apprehension of bias in the judge's conduct.

The Court of Appeal found that Judge Naughton had failed to provide adequate reasons for rejecting the appellant's expert evidence. The court held that the judge's reasons were not sufficiently articulated to allow for proper appellate review. Furthermore, the court concluded that the circumstances surrounding the rejection of the evidence, coupled with certain remarks made by the judge, gave rise to a reasonable apprehension of bias. Consequently, the court allowed the appeal.

The Court of Appeal set aside the judgment and orders made by Judge Naughton on 14 December 2000 and directed a new trial before a different judge of the District Court. The costs of the first trial were left to the discretion of the judge hearing the new trial, and the respondent was ordered to pay the appellant's costs of the appeal.