Canvas Graphics Pty Ltd v Kodak (Australasia) Pty Ltd [1995] FCA 470

CATCHWORDS Damages - contract - leasing of equipment - breach - difficulties in assessing measure of damages in claim for loss of profit having regard to commercial and other uncertainties. Accord and Satisfaction - whether party has accepted in place of a cause of action an executory promise or the performance of the promise - question of fact. Costs - discretion - substantive offer of settlement - lengthy litigation - whether trial judge correctly penalised in costs applicant succeeding partially after making exaggerated claim. Cases Considered: Damages: The Commonwealth of Australia v Amann Aviation Pty Ltd (1991) 174 CLR 64 Accord and Satisfaction: McDermott v Black (1940) 63 CLR 161 Fraser v Elgen Travel Pty Ltd (1982) VR 398 British Russian Gazette and Trade Outlook Ltd v Associated Newspapers Ltd (1933) 2 KB 616 Costs: Smallacombe v Lockyer Investment Co. Pty Ltd (1993) 42 FCR 97 Cummings v Lewis (1993) 41 FCR 559

Matter No. SG 45 of 1994 CANVAS GRAPHICS PTY LTD v KODAK (AUSTRALASIA) PTY LTD BEAUMONT, LEE AND VON DOUSSA JJ ADELAIDE 30 JUNE 1995

IN THE FEDERAL COURT OF AUSTRALIA ) ) SOUTH AUSTRALIAN DISTRICT REGISTRY ) ) GENERAL DIVISION ) No. SG 45 of 1994 BETWEEN: CANVAS GRAPHICS PTY LTD Appellant AND: KODAK (AUSTRALASIA) PTY LTD Respondent MINUTES OF ORDER THE COURT : BEAUMONT, LEE AND VON DOUSSA JJ DATE OF ORDER : 30 JUNE 1995 WHERE MADE : ADELAIDE THE COURT ORDERS THAT: 1. The appeal be allowed in part. 2. The orders made at first instance on 19 May 1994 be varied by increasing the amount of the judgment for the applicant, Canvas Graphics Pty Ltd, against the respondent, Kodak (Australasia) Pty Ltd, from the sum of $171,053 to $273,591. 3. The cross-appeal be dismissed. 4. The respondent pay the appellant's costs of the appeal and the cross-appeal. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.