| IN THE COURT OF APPEAL OF NEW ZEALAND |
| CA645/2015 [2017] NZCA 12 |
| BETWEEN | BDM GRANGE LTD |
| AND | TRIMEX PTY LTD |
| Hearing: | 4 August 2016 |
Court: | Kós P, Harrison and Venning JJ |
Counsel: | L J Turner for Appellant |
Judgment: | 17 February 2017 at 10:00am |
JUDGMENT OF THE COURT
A The appeal is allowed in part:
(a)by setting aside judgment for the respondent for special damages of $1,537,643 and substituting judgment for $1,419,297; and
(b)setting aside judgment for the respondent for general damages of $150,000.
BAny issue as to practical implementation of the revised calculation of permissible deductions by the appellant is to be dealt with in the High Court, as is costs in that Court.
CThe appellant will have costs in this Court for a standard appeal on a Band A basis, together with usual disbursements.
____________________________________________________________________
REASONS OF THE COURT
(Given by Kós P)
Trimex Pty Ltd held the Australasian distribution rights to a number of leading cosmetics brands, such as Clarins. BDM Grange Ltd was its long term New Zealand distributor, remunerated by a profit share arrangement. A dispute arose about costs BDM was entitled to deduct. In 2012 Trimex terminated the distribution arrangement.
In the High Court, Duffy J found costs deductions made by BDM were impermissible. Partly as a result of this, BDM had underpaid Trimex its net profit entitlement. On that basis she entered judgment against BDM for $1,537,643.[1]
[1]BDM Grange Ltd v Trimex Pty Ltd [2015] NZHC 2469 (“HC Judgment”).
Duffy J also found BDM had committed the tort of injurious falsehood by sending three emails to customers of Trimex in 2013. For that she awarded general damages to Trimex of $150,000.
BDM appeals. The issues on appeal have narrowed from those before the High Court. They are:
(a)Issue 1: did the Judge err in finding BDM had made impermissible deductions for advertising and promotions costs (A&P costs) for the 2011 and 2012 financial years?[2]
(b)Issue 2: did the Judge err in quantifying damages at $150,000 for injurious falsehood?
[2]The parties adopted a financial year that ran from 1 October to 30 September of the next year.
The amount in dispute in Issue 1 is $702,746. It comprises $590,866 for the Clarins line, $92,771 for the RoC line and $19,109 for Swarovski.[3]
Facts
[3]A table setting these figures out is shown at [22].
Trimex is an Australian company that holds distribution rights in Australasia from certain brand principals for high quality cosmetics. Its main business was distributing cosmetics produced by the French group Clarins.
In 1984 Trimex agreed with BDM that the latter act as its wholesaler in New Zealand. BDM would store the products in its warehouses and distribute them to retailers. This arrangement was informal, flexible, ill-defined and not ultimately governed by the written joint venture contract they entered at that time. No such joint venture actually occurred. The parties at trial approached the task of defining the…
Keep reading for free
Create a free CaseChat account to read BDM Grange Ltd v Trimex Pty Ltd and more:
- Read every judgment in full
- Ask AI and get answers linked to paragraphs
- See how each paragraph was cited in later cases
- Download judgments as PDF or Word
One click creates your free account or signs you in.
By continuing you agree to the Terms and Privacy Policy.
- Case
- [2017] NZCA 12
- Decision Date
CaseChat Overview and Summary
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Full text does not contain this section.
Ratio Decidendi
Legal Principle Established
Full text does not contain this section.