Oxley County Council v Macdonald

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.