Renown Corporation Pty Ltd v SEMF Pty Ltd

Renown Corporation Pty Ltd (Renown) appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning damages awarded to SEMF Pty Ltd (SEMF) for breach of contract. The dispute arose from a contract for the supply and installation of a software system by Renown to SEMF, which SEMF alleged was defective.

The Court of Appeal was required to determine two principal legal issues. First, whether the primary judge erred in assessing SEMF's damages as at the date of the hearing, rather than the date of Renown's breach. Second, whether the primary judge erred in assessing damages as the costs of replacing the defective system with a new, upgraded system, instead of the costs of rectifying the individual defects within the original system.

On the first issue, the Court of Appeal held that there was no error in assessing damages as at the date of the hearing. It noted that there was no contention that SEMF had unreasonably failed to mitigate its losses by delaying rectification or replacement of the defective system. Regarding the second issue, the Court found no error in the primary judge's approach to the measure of damages. It was common ground between the parties that the most efficient and cost-effective approach for SEMF was to replace the defective system with a newer, upgraded system. The Court affirmed that the onus was on Renown, as the defendant, to prove any amount saved by SEMF due to this upgrade, which it had failed to do.

The Court of Appeal dismissed the appeal, with costs awarded to SEMF.