Perre & Ors v Apand Pty Ltd

The case of *Perre & Ors v Apand Pty Ltd* involved a dispute between potato growers in South Australia and a potato seed supplier, Apand Pty Ltd. The growers alleged that they suffered economic loss due to the contamination of their crops with *Phytophthora infestans*, a fungus that causes late blight. This contamination was allegedly caused by the supply of infected seed potatoes by Apand. The matter was heard by the High Court of Australia, with judgments delivered by McHugh and Callinan JJ.

The central legal issue before the High Court was whether Apand owed a duty of care to the potato growers in circumstances where the alleged negligence in supplying infected seed potatoes resulted in economic loss, rather than direct physical injury. Specifically, the court had to consider the principles of negligence, particularly concerning the recovery of pure economic loss, and the scope of the duty of care owed by a supplier of goods to subsequent purchasers who might suffer financial harm.

McHugh J, applying established principles of negligence, found that Apand did owe a duty of care to the growers. His Honour reasoned that the growers were vulnerable to the actions of Apand, as they relied on the supplier for disease-free seed potatoes. The foreseeable risk of economic loss was significant, and the growers had no reasonable opportunity to protect themselves from the consequences of Apand's negligence. Callinan J, while agreeing with the outcome, expressed reservations about the broad application of negligence principles to pure economic loss claims, emphasizing the need for caution in extending liability. Both judges considered the proximity between the parties and the policy considerations relevant to imposing a duty of care in such a scenario.

The High Court ultimately found in favour of the growers, holding that Apand was liable for the economic loss suffered.