Santos Coffee Company Pty Limited v Direct Freight Express Pty Ltd (No 2)

Santos Coffee Company Pty Limited (Santos) appealed to the Court of Appeal of New South Wales against orders made by the District Court in favour of Direct Freight Express Pty Ltd (Direct). The dispute concerned claims arising from damage to goods transported by Direct for Santos, and cross-claims for unpaid freight charges.

The Court of Appeal was required to determine whether the District Court had erred in its assessment of damages and the application of relevant legal principles, particularly concerning the apportionment of liability and the calculation of amounts due between the parties. The appeal also involved consideration of the costs orders made by the District Court.

The Court of Appeal found that the District Court had made errors in its calculations and application of the law. It determined that Santos was entitled to recover a sum for damaged goods, while Direct was entitled to recover unpaid freight charges. The Court applied principles of set-off to reconcile these competing claims. The Court allowed the appeal, setting aside the District Court's orders and substituting new judgments for each party, which were then to be set off. The costs orders were also varied to reflect the outcome of the appeal.