Renown Corporation Pty Ltd v SEMF Pty Ltd [2022] NSWCA 233

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Renown Corporation Pty Ltd v SEMF Pty Ltd [2022] NSWCA 233 Hearing dates: 29 June 2022 Date of orders: 15 November 2022 Decision date: 15 November 2022 Before: Meagher JA at [1]; Brereton JA at [2]; Mitchelmore JA at [43]. Decision: Dismiss the appeal, with costs. Catchwords: CONTRACTS – Remedies – Damages – Time of assessment – Contract for supply and installation of software system – Where system delivered was defective – Whether primary judge erred in assessing damages as at date of hearing rather than date of breach – No contention that plaintiff unreasonably failed to mitigate its losses by delaying rectification or replacement – No error in assessing damages as at date of hearing CONTRACTS – Remedies – Damages – Measure of damages – Whether primary judge erred in assessing damages as costs of replacing defective system with new upgraded system, instead of costs of rectifying individual defects – Common ground that most efficient and cost-effective approach was replacement with newer system – Betterment – Onus on defendant to prove any amount saved by plaintiff due to upgrade – No error in primary judge's approach Legislation Cited: Nil Cases Cited: Bellgrove v Eldridge (1954) 90 CLR 613; [1954] HCA 36 Bevan Investments v Blackhall & Struthers (1978) 11 BLR 78 Brit Inns Ltd v BDW Trading Ltd [2012] EWHC 2143 (TCC) Cory & Son v Wingate Investments (1981) 17 BLR 104 East Ham Corp v Bernard Sunley [1966] AC 406 Imperial College of Science and Technology v Norman & Dawbarn (1986) 12 Constr LJ 280 Johnson v Perez (1988) 166 CLR 351; [1988] HCA 64 Radford v de Froberville [1977] 1 WLR 1262 Robinson v. Harman (1848) 1 Exch 850 Ruthol Pty Ltd v Tricon (Australia) Pty Ltd [2005] NSWCA 443 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 Tyco Australia Pty Ltd v Optus Networks Pty Ltd [2004] NSWCA 333 Texts Cited: The Hon Justice James Edelman, McGregor on Damages (21st ed, 2021, Sweet & Maxwell) Category: Principal judgment Parties: Renown Corporation Pty Ltd (First Appellant) Dialog Pty Ltd (Second Appellant) SEMF Pty Ltd (Respondent) Representation: Counsel: