Narrow Fabric Manufacturing v Kahwajian

Narrow Fabric Manufacturing Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the District Court of New South Wales. The dispute concerned the appellant's claim for damages for breach of contract against Mr. Kahwajian (the respondent), who had been employed by the appellant as a sales representative. The appellant alleged that the respondent had breached his employment contract by failing to account for and pay over moneys received on behalf of the appellant.

The primary legal issue before the Court of Appeal was whether the District Court judge had erred in finding that the respondent had not breached his employment contract. This involved a determination of the terms of the employment contract, particularly concerning the respondent's obligations regarding the collection and remittance of payments from customers. The court also had to consider whether the evidence presented supported the District Court's conclusion that the respondent had acted in accordance with those contractual terms.

The Court of Appeal reviewed the evidence and the findings of the District Court. It was held that the District Court judge had made an error in interpreting the employment contract. The Court of Appeal found that the respondent was indeed in breach of his contractual obligations by failing to account for and pay over the moneys received. The appeal was therefore allowed, and the matter was remitted to the District Court for a new trial on the assessment of damages.