Oxley County Council v Macdonald

Case [1999] NSWCA 126


CITATION: OXLEY COUNTY COUNCIL v MACDONALD & ORS; BRAMBLES HOLDINGS LIMITED v MACDONALD & ORS [1999] NSWCA 126
FILE NUMBER(S): CA 40117/97; 40121/97
HEARING DATE(S): 13 April 1999
JUDGMENT DATE:
2 July 1999

PARTIES :


Oxley County Council
Ronier Godfrey MacDonald
Brambles Holdings Limited
Leslie Thomas Page
Rosalie Anne Page
Patuse Pty Limited
JUDGMENT OF: Priestley JA at 1; Sheller JA at 2; Powell JA at 80
LOWER COURT JURISDICTION: Supreme Court - Common Law Division
LOWER COURT FILE NUMBER(S) : 15000/88
LOWER COURT JUDICIAL OFFICER: Bruce J
COUNSEL:

Appeal 40117/97
J A Timbs QC/M L Williams - A
B H K Donovan QC/G R Graham - R1
D Nock SC/G M Gregg - R2
J D Hislop/I J McGillacuddy - R4

Appeal 40121/97
D Nock SC/G M Gregg - A
B H K Donovan QC/G R Graham - R1
J A Timbs QC/M L Williams - R2
J D Hislop QC/I J McGillacuddy - R3 R4 R5
SOLICITORS:

Appeal 40117/97
Sparke Helmore - A
T D Kelly & Co - R1
Colin Biggers & Paisley - R2
McLachlan Chilton - R4

Appeal 40121/97
Colin Biggers & Paisley - A
T D Kelly & Co - R1
Sparke Helmore - R2
J M Crestani - R3 R4
McLachlan Chilton - R5
CATCHWORDS: NEGLIGENCE - co-tortfeasors - apportionment of liability - whether unreasonable or plainly unjust; CONTRACT - implied term - breach - measure of damage - application of s5 (1) of Law Reform (Miscellaneous Provisions) Act 1946 - remoteness of damage; PRACTICE & PROCEDURE - costs - Bullock order
ACTS CITED: Workers Compensation Act 1987
Law Reform (Miscellaneous Provisions) Act 1965
Law Reform (Miscellaneous Provisions) Act 1946
CASES CITED:
Astley v Austrust Limited (1999) 73 ALJR 403
Goose v Wilson Sandford & Co (unreported) English Court of Appeal, 13 February 1998
Soulemezis v Dudley (Holdings) Pty Ltd (1987) 10 NSWLR 247
Lewis v G H Varley Pty Limited (unreported) 18 October 1996
Grljak v Trivan Pty Ltd (In Liquidation) (1994) 35 NSWLR 82
XL Petroleum (NSW) Pty Ltd v Caltex Oil (Australia) Pty Ltd (1985) 155 CLR 448
House v The King (1936) 55 CLR 499
Kondis v State Transport Authority ((1984) 154 CLR 672
Podrebersek v Australian Iron & Steel Pty Ltd (1985) 59 ALJR 492
Wynbergen v Hoyts Corporation Pty Ltd (1997) 72 ALJR 65
Alcatel Australia Ltd v Scarcella (1998) 44 NSWLR 349
Florida Hotels Pty Ltd v Mayo (1965) 113 CLR 588
Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145
Koufos v C Czarnikow Limited [1969] 1 AC 350 at 388;
Alexander v Cambridge Credit Corporation (1987) 9 NSWLR 310 at 363 and following
Wenham v Ella (1972) 127 CLR 454
Norwest Refrigeration Services Pty Ltd v Bain Dawes (WA) Pty Ltd (1984) 157 CLR 149
Gould v Vaggelas (1985) 157 CLR 215
Steppke v National Capital Development Commission (1978) 39 LGRA 94
DECISION: Appeals allowed

THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL
                          CA 40117/97; 40121/97
                          CL 15000/88

                              PRIESTLEY JA

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Oxley County Council v Macdonald [1999] NSWCA 126
Case
[1999] NSWCA 126
Decision Date

CaseChat Overview and Summary

Oxley County Council appealed against a judgment of the Supreme Court of New South Wales, which had found the Council liable in negligence to the respondent, Macdonald, and had also made orders regarding costs. The dispute arose from a contract for the supply and installation of certain electrical equipment by the Council to Macdonald. Macdonald alleged that the equipment was defective and that the Council had breached its contractual obligations and was also negligent in its performance.

The primary legal issues before the Court of Appeal were whether the trial judge had erred in apportioning liability between the Council and another party, and whether the measure of damages awarded for breach of contract was appropriate, particularly in light of the principles of remoteness and the application of s 5(1) of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW). The Court also considered the appropriateness of a *Bullock* order concerning costs.

The Court of Appeal found that the trial judge had erred in his assessment of the apportionment of liability between the Council and the other party, concluding that the apportionment was unreasonable and plainly unjust. Furthermore, the Court determined that the damages awarded for breach of contract were not properly calculated, as they did not adequately account for the principles of remoteness of damage. The Court also found that the *Bullock* order for costs was not justified in the circumstances.

Consequently, the appeals were allowed.

Orders

Orders of the court

Appeals allowed

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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