OneSteel Trading Pty Limited v Capital Steel & Pipe Pty Limited (Judgment 3) [2007] NSWDC 201

New South Wales District Court

CITATION: OneSteel Trading Pty Limited v Capital Steel & Pipe Pty Limited (Judgment 3) [2007] NSWDC 201

HEARING DATE(S): 28/5/07-31/5/07, 4/6/07, 7/6/07, 13/6/07, 9/8/07

JUDGMENT DATE: 5 October 2007

JURISDICTION: Civil

JUDGMENT OF: Rolfe DCJ

DECISION: See paragraphs 274-277.

CATCHWORDS: PART I: - CONTRACT - CONCENSUS - CONDITION PRECEDENT - TIME OF THE ESSENCE - VARIATION - BREACH - FRUSTRATION - UNCONSCIONABLE CONDUCT - DAMAGES INCLUDING ELEMENT OF SETTLEMENT OF THIRD PARTY CLAIM - PART II: - CONTRACT - TERMS - FURTHER CONTRACT - TERMS - TIME OF THE ESSENCE & RESERVATION OF RIGHTS - BREACH & TERMINATION - MITIGATION - ACCORD & SATISFACTION - FRUSTRATION - UNCONSCIONABLE CONDUCT - ASSESSMENT OF DAMAGES UNDER SALE OF GOODS ACT LEGISLATION

Sale of Goods Act 1923 (NSW) LEGISLATION CITED: Sales of Goods Act 1972 (NT) Trade Practices Act 1974 (Cth)

Ormwave Pty Ltd v Smith (2007) NSWCA 210 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Integrated Computer Services Pty Ltd v Digital Equipment Corp (Aust) Pty Ltd (1988) 5 BPR [97326] at 11,117-11,178 Meares v Attorney-General (1983) NZLR 308 at 377 Vroon BV v Foster's Brewing Group (1994) 2 VR 32 Branir Pty Ltd v Owston Nominees (No. 2) Pty Ltd (2001) 117 FCR 424 at 525 Pagnan S.p.A. v Feed Products Ltd (1987) 2 Lloyds REP 601 Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 Air Great Lakes Pty Limited v KS Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622 Magill v National Australia Bank (2001) NSWCA 221 Concrete Constructions Group v Litevale Pty Ltd & Ors (2002) NSWSC 670 Bowes v Challenger (1923) 32 CLR 159 Trans Trust S.P.R.L. v Danubian Trading Company Limited (1952) 1 Lloyds' Rep 348 Ficom SA v Sociedad Cadex Limitada (1980) 2 Lloyd's LR 118 at 131 W J Alan & Co Ltd v El Nasr Export and Import Co (1972) 2 QB 189 Satellite Estate Pty Ltd v Jaquet (1968) 71 SR (NSW) 126 at 150 Etablissements Chainbaux SARL v Harbormaster Ltd (1955) 1 Lloyds Rep 303 Amann Aviation Pty Ltd v Commonwealth (1988) 100 ALR 267 at 309 Davis Contractors Ltd v Fareham (1956) AC 696 at 729 Fairway Trading Pty Limited v Project Blue Moon Pty Ltd & Anor (1999) ACTSC 99 Gillett v Holt (2001) Ch 210 Hawker Pacific Pty Ltd v Helicopter Charter Pty Ltd (1991) 22 NSWLR 298 Yimin Zhang v Shanghai Wool and Jute Textile Co Ltd (2006) VSCA 133 Dominion Motors Ltd v Grieve (1936) NZLR 766 at 771 Reg Glass Pty Ltd v Rivers Locking Systems Pty Ltd (1968) 120 CLR 516 at 523 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd (1998) 192 CLR 603 Rowe v The Australian United Steam Navigation Company Ltd (1909) 9 CLR 1 at 18 & 27 CASES CITED: Jones v Dunkel (1959) 101 CLR 298 Nicolic & Anor v Oladenly Pty Ltd & Ors (2007) NSWCA 252 at [17] Insurance Commissioner v Joyce (1948) 77 CLR 39 at 49 British Railways Road v Harrington (1972) AC 877 Blatch v Archer (1774) 1 Cowp. 63 at 65 (98 ER 969 at 970) Russell v Aiello (2003) HCA 53 at [11] Payzu Ltd v Saunders (1919) 2KB 581 Kargotich v Mustica (1973) WAR 167 at 169 Osborne v McDermott (1998) 3 VR 1 at 10-11 GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd (2003) 128 FCR 1 at (356 & 359) Hollyburton UK Ltd v Irani (2006) VSC 403 Luna Park (NSW) Ltd v Tramways Advertising Pty Ltd (1938) 61 CLR 286 at 300 Wendt v Bruce (1931) 45 CLR 245 at 254 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1981) 149 CLR 337 Krell v Henry (1903) 2KB 740 International Paper Co v Rockefeller 161 N.Y. App. Div 180 Howell v Coupland (1876) 1 QBD 258 Herne Bay Steam Boat Co v Hutton (1903) 2KB 683 Scanlan's New Neon Ltd v Toohey's Ltd (1943) 67 CLR 169 El Rio Oils (Canada) Ltd v Pacifica Coast Asphalt Co 213 P 2d1 (1949) Canadian Industrial Alcohol Co Ltd v Dunbar Molasses Co 179 NE 383 (1932) Denmark Productions Ltd v Boscobel Productions (1969) 1QB 699 ACCC v Simply No-Knead (Franchising) Pty Ltd (2000) 104 FCR 253 at [51] ACCC v C G Berbatis Holdings Pty Ltd (2003) 214 CLR 51 Baltic Shipping Co v Dillon (1991) 22 NSWLR 1 (at 9) CIT Credit Pty Ltd v Blayn Norman Keable (2006) NSWCA 130 Elders Ltd v Incitec Ltd & Anor (2006) SASC 99 at [233] Wertheim v Chicoutimi Pulp Co (1911) AC 301 Franke v CIC General Insurance Ltd ("The Coral") (1994) 33 NSWLR 373 ABD Metals v Anglo Chemical (1955) 2 Lloyd's Rep 456