Rolfe v Katunga Lucerne Mill Pty Ltd [2005] NSWCA 252

New South Wales Court of Appeal

CITATION: Rolfe v Katunga Lucerne Mill Pty Ltd [2005] NSWCA 252

HEARING DATE(S): 13 May 2005

JUDGMENT DATE: 28 July 2005

JUDGMENT OF: Hodgson JA at 1; Santow JA at 2; McClellan AJA at 126

DECISION: (1) Judgment and orders in the court below in favour of the respondents/defendants to be set aside. ; (2) In lieu thereof judgment for the appellant/plaintiff against the second respondent/defendant on the issue of liability, damages to be assessed. ; (3) Matter to be remitted to the District Court of New South Wales for: ; (a) a new trial on the issue of damages; ; (b) a determination of the cross-claim brought by the cross-claimant, Robank Farm Supplies Pty Limited, against the cross-defendant, Katunga Lucerne Mill Pty Limited. ; (4) The respondents/defendants to pay 80% of the appellant's costs of the appeal and of the trial in the court below.

CATCHWORDS: PRODUCT LIABILITY - Sale of Goods - Merchantable quality - causation - no novus actus interveniens when plaintiff's horses poisoned by contaminated chaff from supplier in circumstances where plaintiff aware of rumours of possibility of contaminated product but not notified - Whether proper inference drawn from facts - Admissibility of evidence.

LEGISLATION CITED: Sale of Goods Act 1923 (NSW) ss19(1) and (2)

Alexander v Cambridge Credit Corporation Ltd (1987) 9 NSWLR 310 Annikin v Sierra (2004) 79 ALJR 452 Mahoney v J Kruschich (Demolitions) Pty Ltd (1985) 156 CLR 522 March v E & M H Stramare Pty Ltd (1991) 171 CLR 506 CASES CITED: Hadley v Baxendale [1854] 9 Ex 341 at 354; 156 ER 145 Lexmead (Basingstoke) Ltd v Lewis (1982) AC 225 State Rail Authority of New South Wales v Earthline Constructions Pty Ltd (in liq) (1999) 73 ALJR 306 Warren v Coombes (1979) 142 CLR 531