Aqua-Marine Marketing Pty Ltd v Pacific Reef Fisheries (Australia) Pty Ltd (No 5) [2012] FCA 908

FEDERAL COURT OF AUSTRALIA

Aqua-Marine Marketing Pty Ltd v Pacific Reef Fisheries (Australia) Pty Ltd (No 5) [2012] FCA 908 Citation: Aqua-Marine Marketing Pty Ltd v Pacific Reef Fisheries (Australia) Pty Ltd (No 5) [2012] FCA 908

Parties: AQUA-MARINE MARKETING PTY LTD (ACN 089 242 937) v PACIFIC REEF FISHERIES (AUSTRALIA) PTY LTD (ACN 084 456 931)

File number: QUD 195 of 2010

Judge: COLLIER J

Date of judgment: 24 August 2012

Catchwords: CONTRACTS – agreement for sale of frozen farmed cooked black tiger prawns – seller operated prawn farm in north Queensland – buyer a prawn wholesaler – agreement contemplated onsale of prawns by buyer to Woolworths Supermarkets – oral contract – no previous contractual arrangements between parties – significant proportion of prawns defective – significant proportion of prawns not suitable for retail sale to consumers – significant proportion of prawns did not comply with Woolworths Specifications – whether Woolworths Specifications incorporated into agreement – whether parties discussed Woolworths Specifications prior to conclusion of agreement – relevant principles concerning incorporation of written terms into oral agreement – whether prawns defective at time of processing – treatment of prawns by citric acid bath – effect of freezer storage on prawn quality – whether fluctuations in freezer temperatures – examination of prawns at farm by buyer's representative – whether superficial examination EVIDENCE – diseases and defects commonly afflicting farmed prawns – expert evidence as to cause of defects in relevant prawns – credit of witnesses – relevance of detailed quality control records SALE OF GOODS – implied terms under s 17(a) and s 17(c) Sale of Goods Act 1896 (Qld) – commercial parties transacting – fitness for purpose – whether reliance by buyer on skill and judgment of seller – whether examination of prawns by buyer's representative displaced reliance on seller's skill and judgment – merchantable quality – "unsaleable" – whether implied term of merchantable quality pleaded in Statement of Claim – conduct of trial – whether examination of prawns by buyer's representative would have disclosed latent defects TRADE PRACTICES – s 53 Trade Practices Act 1974 (Cth) – "falsely represent" – meaning of "representation"