Von Schoeler v ALAN TAYLOR and Company Ltd Trading as Boral Timber

In the District Court of New South Wales, the plaintiff, Von Schoeler, brought proceedings against the defendant, ALAN TAYLOR and Company Ltd trading as Boral Timber. The dispute concerned the supply and installation of timber flooring in the plaintiff's residence, with the plaintiff alleging that the timber supplied was defective and not of merchantable quality, leading to a claim for damages.

The central legal issue before the court was whether the timber flooring supplied by the defendant breached the implied condition of merchantable quality under the Sale of Goods Act 1923 (NSW). Specifically, the court had to determine if the timber, which exhibited significant warping and cupping, met the standard of quality that a reasonable buyer would expect for the purpose for which it was sold, namely, as flooring in a residential dwelling.

Judge Jarrett found that the timber supplied was not of merchantable quality. His Honour reasoned that the degree of warping and cupping observed in the timber was excessive and rendered it unfit for its intended purpose as flooring. The court applied the principles of the Sale of Goods Act, emphasizing that goods sold by description must correspond with that description and be of merchantable quality. The evidence presented, including expert testimony regarding the timber's condition and its deviation from acceptable standards, supported the conclusion that the defendant had breached its statutory obligations. The court ordered that the defendant pay damages to the plaintiff.