Dovuro Pty Ltd v Wilkins [2000] FCA 1902

FEDERAL COURT OF AUSTRALIA

Dovuro Pty Ltd v Wilkins [2000] FCA 1902

NEGLIGENCE – duty of care – economic loss – absence of physical injury – risk of physical injury – cost of avoiding or minimising risk – standard of care – forseeability – existence of statutory scheme regulating conduct – compliance with statutory scheme – whether liability can be greater than arising under contract

CONTRACT – construction and interpretation – "undesirable species" – trade meaning – incorporated by conduct – custom or usage – how established – exclusion clause – causation

SALE OF GOODS – implied terms – whether purchaser relied on seller's skill and judgment – whether goods of merchantable conduct

PRACTICE & PROCEDURE – appeal – point not argued at trial Federal Court of Australia Act 1976 (Cth) ss 4, 24 Quarantine Act 1908 (Cth) Sale of Goods Act 1908 (NZ) s 16 Trade Practices Act 1974 (Cth) Perre v Apand Pty Ltd (1999) 198 CLR 180, discussed Ward v McMaster [1988] IR 337, cited Dynasty Pty Ltd v Coombs (1995) 59 FCR 122, cited White v Minister for Immigration & Multicultural Affairs [2000] FCA 232, cited Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission (2000) 74 ALJR 1348, cited Multicon Engineering Pty Ltd v Federal Airports Corporation (1997) 47 NSWLR 631, applied Winnipeg Condominium Corporation No 36 v Bird Construction Co (1995) 121 DLR (4th) 193, referred to Leigh and Sillivan Ltd v Aliakmon Shipping Co Ltd [1985] QB 350, cited DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423, distinguished Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982)149 CLR 337, distinguished FAI Traders Insurance Co Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343, cited Henry Kendall & Sons v William Lillico & Sons Ltd [1969] 2 AC 31, cited Donoghue v Stevenson [1932] AC 562, discussed Winterbottom v Wright (1842) 152 ER 402, cited Langridge v Levy (1837) 150 ER 863, cited Haseldine v C A Daw & Son Ltd [1941] 2 KB 343, cited Stennett v Hancock & Peters [1939] 2 All ER 578, cited Maindonald v Marlborough Aero Club & New Zealand Airways Ltd [1935] NZLR 371, cited Howard v Furness Houlder Argentine Lines Ltd [1936] 2 All ER 781, cited Malfroot v Noxal Ltd (1935) 51 TLR 551, cited Watson v Buckley, Osborne, Garnett & Co Ltd [1940] 1 All ER 174, cited Pack v County of Warner (1964) 44 DLR (2d) 215, cited Fraser Henleins Pty Ltd v Cody (1944) 70 CLR 100, cited Harris v Macquarie Distributors Pty Ltd [1967] VR 257, cited Bourhill v Young [1943] AC 92, cited Anns v Merton London Borough Council [1978] AC 728, referred to South Pacific Manufacturing Co Ltd v New Zealand Security Consultants & Investigations Ltd [1992] 2 NZLR 282, cited Caparo Industries plc v Dickman [1990] 2 AC 605, cited Reeman v Department of Transport [1997] 2 Lloyds Rep 648, cited Sutherland Shire Council v Heyman (1985) 157 CLR 424, cited Pyrenees Shire Council v Day (1998) 192 CLR 330, cited Romeo v Conservation Commission of the Northern Territory (1998) 192 CLR 431, cited Graham Barclay Oysters Pty Ltd v Ryan [2000] FCA 1099, referred to Wyong Shire Council v Shirt (1980) 146 CLR 40, applied United States v Carroll Towing Co 159 F2d 169 (1947), cited Thompson v Johnson & Johnson Pty Ltd [1991] 2 VR 449, considered Polemis and Furness, Withy & Co Ltd [1921] 3 KB 560, referred to Overseas Tankship (UK) Ltd v Morts Dock & Engineering Co Ltd [1961] AC 388, referred to Hughes v Lord Advocate [1963] AC 837, referred to Overseas Tankship (UK) Ltd v The Miller Steamship Co Pty Ltd [1967] AC 617 (The Wagon Mound (No 2), referred to Hughes v Lord Advocate [1963] AC 837, referred to Mount Isa Mines Ltd v Pusey (1970) 125 CLR 383, referred to Rae v Broken Hill Pty Co Ltd (1957) 97 CLR 419, referred to Hawkins v Coulsdon & Purley Urban District Council [1954] 1 QB 319, referred to Marshall v Lindsey County Council [1935] 1 KB 516, referred to Rogers v Whitaker (1992) 175 CLR 479, cited Austral Pacific Group Ltd (in liquidation) v Airservices Australia [2000] HCA 39, cited Suttor v Gundowda Pty Ltd (1950) 81 CLR 418, referred to O'Brien v Komesaroff (1982) 150 CLR 310, cited Coulton v Holcombe (1986) 162 CLR 1, applied University of Wollongong v Metwally (No. 2) (1985) 59 ALJR 481, applied Water Board v Moustakas (1988) 62 ALJR 209, referred to Banque Commerciale SA, en liquidation v Akhil Holdings Ltd (1990) 169 CLR 279, referred to Ultramares Corp v Touche 174 NE 441, referred to Football Club de Metz v Winoth, "Colmar", 20 April 1955, D, 1956, 723, cited Cattle v Stockton Waterworks Co (1875) LR 10 QB 453, cited Simpson & Co v Thompson (1877) 3 AppCas 279, cited Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465, cited Caltex Oil (Australia) Pty Ltd v The Dredge "Willemstad" (1976) 136 CLR 529, cited Hill v van Erp (1997) 188 CLR 159, cited Bryan v Maloney (1995) 182 CLR 609, applied Weller & Co v Foot & Mouth Disease Research Institute [1966] 1 QB 569, referred to S C M (United Kingdom) Ltd v W J Whittal & Son Ltd [1971] 1 QB 337, referred to D & F Estates Ltd v Church Commissioners for England [1989] AC 177, cited Murphy v Brentwood District Council [1991] 1 AC 398, cited Rivtow Marine Ltd v Washington Iron Works (1973) 40 DLR (3d) 530, discussed Attorney-General for Ontario v Fatehi (1981) 127 DLR (3d) 603, followed Canadian National Railway Co v Norsk Pacific Steamship Co Ltd (1992) 91 DLR (4th) 289, referred to Nelson v Dahl (1879) 12 ChD 568, applied Majeau Carrying Co Pty Ltd v Coastal Rutile Ltd (1973) 129 CLR 48, applied Appleby v Pursell [1973] 2 NSWLR 879, cited Homestake Australia Ltd v Metana Minerals NL (1991) 11 WAR 435, cited Lord Forres v Scottish Flax Co Ltd [1943] 2 All ER 366, applied Strand Music Hall Co Ltd (1865) 35 Beav 153, referred to SA Maritime et Commerciale of Geneva v Anglo Iranian Oil Co Ltd [1954] 1 WLR 492, cited Tea Trade Properties Ltd v CIN Properties Ltd [1990] 1 EGLR 155, cited Smith Hogg & Co Ltd v Black Sea & Baltic General Insurance Co Ltd [1940] AC 997, referred to Leyland Shipping Co Ltd v Norwich Union Fire Insurance Society Ltd [1918] AC 350, cited Monarch Steamship Co Ltd v Karlshamns Oljefabriker [1949] AC 196, cited March v E & MH Stramare Pty Ltd (1991) 171 CLR 506, cited Warren v Coombes (1979) 142 CLR 531, followed Fangrove Pty Ltd v Tod Group Holdings Pty Ltd [1999] 2 QdR 236, cited Woollahra Corporation v Sved (1996) 40 NSWLR 101, cited Zumpano v Montagnese [1997] 2 VR 525, cited Bow Valley Husky (Bermuda) Ltd v Saint John Shipbuilding Ltd [1997] 3 SCR 1210, considered Seely v White Motor Co 403 P 2nd 145 [1965], cited Duffin v Idaho Crop Improvement Association 895 P 2nd 1195 (Idaho 1995), cited Pioneer Hi-Bred International Inc v Talley 493 SW 2nd 602 (1973), cited Miller v United States Steel Corporation 902 F 2nd 573 (1990), cited State of Louisana ex rel Guste v M/V Testbank 752 F 2nd 1019 (1985), cited East River Steamship Corporation v Transamerica Delaval Inc (1986) 476 US 858, cited State Rail Authority v Earthline Pty Ltd (in liq) (1999) 73 ALJR 306, followed Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520, cited Unity Insurance Brokers Pty Ltd v Pezzano (1998) 192 CLR 603, cited Fleming, The Law of Torts, 9th ed, p 238 Linden, Canadian Tort Law, 5th ed, pp 380-398 Feldthusen B, Pure Economic Loss in the High Court of Australia: Reinventing the Square Wheel? (2000) 8 (1) Tort Law Review 33 American Law Institute, Restatement of the Law, Torts 2nd Ch 14 Prosser & Keeton on The Law of Torts, 5th ed, (1984) Mason A, The Recovery & Calculation of Economic Loss at 22-24 in Mulleny NJ (ed), Torts in the Nineties (1997)