OneSteel Manufacturing Pty Ltd v BlueScope Steel (AIS) Pty Ltd

The appeal in *OneSteel Manufacturing Pty Ltd v BlueScope Steel (AIS) Pty Ltd* concerned the construction of a commercial contract for the sale of iron ore and a wrongful refusal to take delivery. The case was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were the correct measure of damages for the seller's loss arising from the buyer's breach, particularly in relation to the denomination of damages and the appropriate time for conversion of a foreign currency amount into Australian dollars. The Court also considered the importance of clearly articulating the issues for determination at trial.

The Court of Appeal allowed the appeal, finding that the Supreme Court had erred in its assessment of damages. The Court reasoned that the damages should be calculated by reference to the market price of iron ore at the time of the breach, and that the conversion from US dollars to Australian dollars should occur at the date of judgment, not at an earlier date as determined by the primary judge. This approach was consistent with the principles governing the assessment of damages for breach of contract, including the application of section 52 of the *Sale of Goods Act 1923* (NSW).

Consequently, the Court of Appeal set aside the orders of the Supreme Court and entered judgment for the plaintiff, OneSteel Manufacturing Pty Ltd, in a sum calculated in accordance with its reasons, including pre-judgment interest. The Court also ordered that the defendant, BlueScope Steel (AIS) Pty Ltd, pay the plaintiff's costs both at trial and on appeal.