Oneflare Pty Ltd v Chernih

Oneflare Pty Ltd brought an action against Chernih seeking damages for alleged breaches of contract and common law duties during the provision of search engine optimisation services. The primary dispute centred on the scope and terms of the retainer between the parties, and whether Chernih had fulfilled their obligations by using reasonable care and skill in performing the services. The case was heard in the Federal Court of Australia.

The court had to determine whether the defendants had a duty to warn the plaintiff of potential issues during the retainer, whether the scope and terms of the retainer were informed by the subsequent conduct and performance of the services, and whether the plaintiff or the defendants were responsible for designing the search engine optimisation strategy. Furthermore, the court needed to assess whether Chernih had used reasonable care and skill in the performance of the retainer, and whether the breach of contract or common law duty resulted in the plaintiff suffering pure economic loss.

The court held that there was an implied duty on Chernih to use reasonable care and skill in the performance of their services, but this did not extend to a duty to warn the plaintiff. The scope and terms of the retainer were informed by the subsequent conduct and performance of the services, and the court found that the plaintiff was responsible for designing the search engine optimisation strategy. The court concluded that Chernih had breached their contractual and common law duties by failing to use reasonable care and skill in the performance of the retainer. As a result, the plaintiff was entitled to damages for pure economic loss. The court assessed the expert evidence provided and determined that a discount should not be applied to the damages awarded.

The court ordered Chernih to pay Oneflare damages in the sum of $50,000, along with interest and costs.