Narellan Pools Pty Ltd v Huntsman Chemical Company Australia Pty Ltd

Narellan Pools Pty Ltd was engaged in the business of manufacturing and supplying fibreglass swimming pools and filed a proceeding against Huntsman Chemical Company Australia Pty Ltd, a manufacturer of a vinyl ester resin used in the manufacture of such pools. The central issue was whether Huntsman's resin, Resin 942, was the cause of osmotic blistering in the pools Narellan manufactured, and whether Huntsman made misleading or deceptive representations about the suitability and quality of the resin. The court had to determine if Huntsman's conduct breached the Trade Practices Act and if there was a breach of contract concerning the fitness and merchantability of the supplied resin.

The court examined the evidence and found that the source of the contaminant causing the osmotic blistering was Huntsman's manufacturing process, not due to any fault by Narellan. The evidence indicated that the Resin 942 supplied by Huntsman was not fit for the specific purpose of producing fibreglass pools and did not meet the required merchantable quality. The court concluded that Huntsman's representations about the resin's suitability and quality were misleading or deceptive, thus contravening sections 52 and 53 of the Trade Practices Act. Furthermore, Huntsman's failure to supply resin that met the contractual conditions for fitness and merchantability constituted a breach of contract under the Sale of Goods Act.

The court ordered Huntsman Chemical Company Australia Pty Ltd to pay the costs of the proceeding.