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 as a result of contaminated potato seed supplied by Apand, which led to a bacterial wilt disease affecting their crops and preventing them from selling their produce to export markets due to quarantine restrictions. The matter proceeded to the High Court of Australia.

The High Court was required to determine whether Apand owed a duty of care to the growers in circumstances where the economic loss suffered was a consequence of the negligent supply of contaminated seed, and whether the growers could recover damages for this pure economic loss. Key legal issues included the scope of the duty of care in negligence, particularly in relation to economic loss, and the application of established principles concerning the recovery of such losses.

The Court, in a majority decision, found that Apand did owe a duty of care to the growers. The reasoning focused on the foreseeability of harm, the proximity between the parties, and the policy considerations relevant to imposing a duty of care. The majority distinguished the situation from cases where pure economic loss arises from negligent misstatement or damage to property of a third party, emphasizing the direct relationship between the supplier of the defective product and the ultimate consumers who rely on the product's fitness for purpose. The Court considered the vulnerability of the growers to the actions of the supplier and the commercial realities of the potato industry.

The High Court ultimately allowed the appeal, holding that Apand was liable for the economic loss suffered by the growers.