Pfizer Australia Pty Ltd v Probiotec Pharma Pty Ltd

The case of Pfizer Australia Pty Ltd v Probiotec Pharma Pty Ltd involved a dispute between two companies, Pfizer Australia and Probiotec Pharma, concerning a breach of contract and the applicability of the statutory proportionate liability regime. The case was heard in the Federal Court of Australia. During the trial, Probiotec sought to amend its pleadings to include allegations of fraud against a third party, which was intended to strengthen its defence under the statutory proportionate liability regime. This amendment was sought after the close of evidence, raising the issue of whether such an amendment was permissible under the circumstances.

The central legal issue before the court was whether the statutory proportionate liability regime could apply to a claim for breach of a strict contractual performance duty. The court had to determine whether the amendment to Probiotec's pleadings, alleging fraud by a third party, was appropriate and if the statutory regime was applicable to the strict contractual duty in question. Additionally, the court examined whether Probiotec's failure to adduce evidence of the alleged fraud against the third party was a bar to relying on the proportionate liability defence.

The court held that the amendment to Probiotec's pleadings, alleging fraud against a third party, was not permissible as it was sought after the close of evidence. The court emphasised that the statutory proportionate liability regime was designed to address situations where multiple parties contribute to a loss, and the amendment in this case did not fall within that scope. Furthermore, the court concluded that the statutory regime did not apply to a strict contractual performance duty as it was not intended to cover breaches of such duties. Consequently, Probiotec's proportionate liability defence was not available to it. The court found in favour of Pfizer Australia, rejecting Probiotec's defence and holding it liable for the full extent of the damages claimed.

In light of the findings, the court ordered Probiotec Pharma Pty Ltd to pay Pfizer Australia Pty Ltd the full amount of damages claimed, along with interest and costs. The court's decision underscored the importance of adhering to procedural rules regarding amendments to pleadings and clarified the scope of the statutory proportionate liability regime in the context of contractual duties.