Pacific Resources International Pty Ltd v Uti (Aust) Pty Ltd; Brackley Industries Pty Ltd v Uti (Aust) Pty Ltd

Pacific Resources International Pty Ltd and Brackley Industries Pty Ltd sued Uti (Aust) Pty Ltd for losses suffered due to a fire at Uti's warehouse which destroyed goods stored there. The plaintiffs claimed Uti was liable under the bailment agreement for the losses, arguing Uti breached its duties as a bailee. Uti argued it was not liable for the losses as it was not at fault for the fire, and sought to rely on standard terms and conditions which excluded its liability in the event of fire. The court was required to determine whether Uti breached its duties under the bailment agreement, whether the standard terms and conditions were incorporated into the contract, and whether those terms excluded Uti's liability.

The court found that Uti had breached its duties as a bailee by not taking reasonable care to prevent the fire and its consequences. While Uti was not found to be at fault for the fire, the court held that it was still liable for the losses. The court found that the standard terms and conditions were not incorporated into the contract, as there was no evidence of Uti drawing the plaintiffs' attention to them. Furthermore, the court found that even if the terms were incorporated, they did not exclude Uti's liability, as the exclusion clause was not sufficiently clear and specific. The court found that Uti was liable for the losses suffered by the plaintiffs.

The court ordered Uti to pay damages to Pacific Resources International Pty Ltd and Brackley Industries Pty Ltd for the losses suffered due to the fire. The court also found that Uti was liable for the costs of the proceeding.