Sanda v PTTEP Australasia (Ashmore Cartier) Pty Ltd (No 7)

Sanda, a seaweed farmer, brought a representative proceeding on behalf of himself and a group of other seaweed farmers against PTTEP Australasia (Ashmore Cartier) Pty Ltd, the holder of a petroleum production licence for the Montara oil field, in relation to an oil spill. The proceedings sought a declaration that the respondent owed the applicants a duty of care, that it breached that duty of care, and that the applicants suffered loss and damage as a result of the oil spill. The applicants further sought damages for their loss and damage. The court had to determine whether the respondent owed the applicants a duty of care, whether it breached that duty of care, and if the applicants suffered loss and damage as a result of the oil spill.

The court found that the respondent owed the applicants a duty of care, which it breached by failing to exercise reasonable care in the operation of the well, leading to the oil spill. The court also found that oil from the spill reached the coastal areas of the Regencies of Kupang and Rote in Indonesia and caused or materially contributed to the death of seaweed crops in those areas, leading to loss and damage for the applicants. The court assessed the applicants' damages based on the evidence provided by the experts, taking into account the severity and duration of the impact on the seaweed industry, as well as the loss of income and other economic losses suffered by the applicants.

The court ordered that the proceeding be listed for the purpose of receiving further submissions on Common Questions 3 and 4 referred to in the reasons for judgment published today, and on the question of interest up to judgment in relation to the damages to be awarded to the applicant, if that question is in dispute. The court also noted that entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.