Weston Aluminium Pty Limited v Alcoa Australia Rolled Products Pty Limited

The dispute in *Weston Aluminium Pty Limited v Alcoa Australia Rolled Products Pty Limited* concerned the interpretation of a contract for the supply of aluminium. Weston Aluminium Pty Limited (Weston) sought to recover damages from Alcoa Australia Rolled Products Pty Limited (Alcoa) for alleged breaches of a supply agreement. The case was heard by the High Court of Australia.

The central legal issue before the High Court was whether Alcoa was entitled to terminate the supply agreement on the grounds of force majeure. Specifically, the court had to determine whether the events relied upon by Alcoa, namely the imposition of a carbon tax by the Australian government, constituted a "force majeure event" as defined by the contract, thereby excusing Alcoa from its obligations to supply aluminium to Weston.

The High Court held that the carbon tax did not constitute a force majeure event under the contract. The court reasoned that the definition of force majeure in the agreement required an event that was beyond the reasonable control of the party seeking to rely on it, and which prevented or delayed the performance of its obligations. While the carbon tax was an external imposition, the court found that Alcoa had not demonstrated that it was beyond its reasonable control to mitigate the impact of such a tax, particularly given the commercial context and the nature of the agreement. The court applied principles of contractual interpretation, emphasizing the importance of the express wording of the force majeure clause and the need for a party to establish that all reasonable steps had been taken to avoid or overcome the event.

The High Court allowed Weston's appeal, finding that Alcoa had wrongfully repudiated the contract by purporting to terminate it under the force majeure clause.