OneSteel Manufacturing Pty Ltd -v- BlueScope Steel (AIS) Pty Ltd [2011] NSWSC 1450

Supreme Court New South Wales

Medium Neutral Citation: OneSteel Manufacturing Pty Ltd -v- BlueScope Steel (AIS) Pty Ltd [2011] NSWSC 1450 Hearing dates: 22 & 23 August and 17,18,19,20,25,26 & 27 October 2011 Decision date: 29 November 2011 Jurisdiction: Equity Division - Commercial List Before: Hammerschlag J Decision: Plaintiff's Summons is dismissed Catchwords: CONTRACT - ss 31, 40 and 50 Sale of Goods Act 1923 (NSW) - contract for the supply and purchase of iron ore - construction of provision entitling buyer to request seller not to load shipments - whether seller's concurrence required - whether buyer breached contract by refusing delivery - provision entitling buyer to reduce level of purchases where caused by requirement for buyer to reline its blast furnace and provided reduction was reasonably proportional to reductions of purchases from other iron ore suppliers - whether buyer exercised its rights under the provision - whether reduction was reasonably proportional - BREACH - whether purchaser breached contract by not being ready and willing to deliver - whether buyer dispensed with requirement for purchaser to be ready and willing - DAMAGES - whether seller suffered damages where it was not ready and willing to deliver - measure of damages - mitigation - whether seller failed to mitigate damages - construction of limitation provision Legislation Cited: Sale of Goods Act 1923 (NSW) Uniform Civil Procedure Rules (2005) (NSW) Cases Cited: Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 International Air Transport Association v Ansett Australia Holdings Ltd (Subject to Deed of Company Arrangement) (2008) 242 ALR 47 Wilkie v Gordian Runoff Limited (2005) 221 CLR 522 Jireh International Pty Ltd v Western Export Services Inc [2011] NSWCA 137 Western Export Services Inc v Jireh International Pty Ltd [2011] HCA 45 Australian Broadcasting Commission v Australasian Performing Right Association Limited (1973) 129 CLR 99 Bowes v Chaleyer (1923) 32 CLR 159 Peter Turnbull and Co Pty Ltd v Mundus Trading Co. (Australasia) Pty Ltd (1954) 90 CLR 235 Foran v Wight (1989) 168 CLR 385 Bulk Oil (Zug) A.G. v Sun International Ltd and Sun Oil Trading Co (No. 2) [1984] 1 Lloyd's Rep 531 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272 Tasman Capital Pty Ltd v Sinclair (2008) 75 NSWLR 1 Ruxley Electronics and Construction Ltd v Forsyth [1994] 3 All ER 801 TCN Channel 9 Pty Ltd v Hayden Enterprises Pty Ltd (1989) 16 NSWLR 130 Lewis v Ogden (1984) 153 CLR 682 Texts Cited: McGregor on Damages, 18th ed (2009) Thomson Reuters Category: Principal judgment Parties: OneSteel Manufacturing Pty Ltd - Plaintiff BlueScope Steel (AIS) Pty Ltd - Defendant Representation: Counsel: N.C. Hutley SC with S.A. Lawrance on 22 & 23 August and A. Leopold SC with S.A. Lawrance thereafter - Plaintiff J.T. Gleeson SC with R.A. Dick SC and R.C.A. Higgins all dates to 20 October 2011 and J.T. Gleeson SC with R.A. Dick SC and B.R. Kremer 25-27 October - Defendant Solicitors: Allens Arthur Robinson - Plaintiff Holding Redlich - Defendant File Number(s): 2009/298710