Proctor & Gamble Pty Ltd v Australian Slatwall Industries Pty Ltd

Proctor & Gamble Pty Ltd brought an action against Australian Slatwall Industries Pty Ltd, seeking damages for a series of alleged breaches of duty of care in the design and manufacture of shelving units. The case was heard in the Supreme Court of New South Wales. The crux of the dispute revolved around the extent of the duty of care owed by the manufacturer to the end user of the product and whether the manufacturer was liable for the injuries sustained by Proctor & Gamble's employees as a result of the alleged defects in the shelving units.

The legal issues before the court included whether a designer or manufacturer could be held liable for negligence where the main proceedings had settled and a consent judgment was entered, and whether a cross-claimant could claim costs from a cross-defendant who had not entered an appearance to defend the claim. Additionally, the court had to determine if the cross-defendant could claim contribution from the cross-claimant in respect of the liability in the main proceedings.

The court found that the designer or manufacturer owed a duty of care to the end user of the product, which extended to the reasonable foreseeability of harm. However, the court also held that a cross-claim against a designer who was not a party to the main proceedings was not permissible if the main proceedings had settled and a consent judgment was entered, and if the cross-defendant did not file an appearance to defend the claim. Furthermore, the court ruled that the cross-claimant could not claim costs from the cross-defendant for defending the plaintiff's case against it. Finally, the court determined that the cross-defendant could not claim contribution from the cross-claimant in respect of the liability in the main proceedings. The case was dismissed in its entirety.