Johnson Controls v Webb [2013] NSWSC 1511

Supreme Court New South Wales

Medium Neutral Citation: Johnson Controls v Webb [2013] NSWSC 1511 Hearing dates: 26/08/2013, 27/08/2013, 29/08/2013, 03/09/2013, 04/09/2013 and 05/09/2013 Decision date: 17 October 2013 Jurisdiction: Equity Division - Technology and Construction List Before: McDougall J Decision: Plaintiff fails against first defendant but succeeds against second and third defendants. As between second and third defendants, the whole of the loss is apportioned to the latter. Plaintiff to bring in draft orders. Catchwords: CONTRACTS - formation - acceptance - acceptance by conductCONTRACTS - breach of contract - where consultant engaged to obtain and review tenders to supply an electric generator to work in synchronisation with two existing generators - where generator supplied incompatible with existing generators - where consultant required tenderers to comply with performance specifications - whether consultant required to verify or audit compliance with performance specificationsCONTRACTS - breach of contract - where tenderer supplied an electric generator to work in synchronisation with two existing generators - where generator supplied incompatible with existing generators - whether compliance with tender performance specifications a term of the contractCONTRACTS - interpretation - meaning of phrase "performance specification"MISLEADING OR DECEPTIVE CONDUCT - misrepresentations - where successful tenderer retained to supply an electric generator to work in synchronisation with two existing generators - where successful tenderer asked manufacturer to identify the winding pitch of the existing generators - where manufacturer supplied incorrect winding pitch - where generator subsequently supplied incompatible with existing generators due to inconsistent winding pitches DAMAGES - action for damages - misleading or deceptive conduct - reliance - requirement of causation - requirement to consider the policy or rationale of the relevant legal normDAMAGES - assessment - apportionment Legislation Cited: Civil Liability Act 2002 (NSW) Sale of Goods Act 1923 (NSW) Trade Practices Act 1974 (Cth) Cases Cited: Abigroup Contractors Pty Ltd v Sydney Catchment Authority (No 3) (2006) 67 NSWLR 341 Allianz Australia Insurance Ltd v GSF Australia Pty Ltd (2005) 221 CLR 568 Azzi v Volvo Cars Australia Pty Ltd [2007] NSWSC 319 Chappell v Hart (1998) 195 CLR 232 Digi-Tech (Australia) Limited v Brand (2004) 62 IPR Elna Australia Pty Ltd v International Computers (Aust) Pty Ltd (No 2) (1987) 16 FCR 410 Gates v City Mutual Life Assurance Limited (1986) 160 CLR 1 Hampic v Adams [1999] NSWCA 455 Henville v Walker (2001) 206 CLR 459 Ingot Capital Investment Pty Ltd v Macquarie Equity Capital Markets Ltd (2008) 73 NSWLR 653 Janssen-Cilag Pty Ltd v Pfizer Pty Ltd (1992) 37 FCR 526 Marks v GIO Australia Holdings Limited (1998) 196 CLR 494 Mitchell Morgan Nominees Pty Ltd v Vella (2011) 16 BPR 30,189 Podrebersek v Australian Iron & Steel Pty Ltd (1985) 59 ALJR 492 Travel Compensation Fund v Tambree (2005) 224 CLR 627 Category: Principal judgment Parties: Johnson Controls Australia Pty Limited (Plaintiff) Webb Australia Group (NSW) Pty Limited (First Defendant) Energy Power Systems Australia Pty Ltd (Second Defendant) Cummins Generator Technologies Germany GmbH (Third Defendant) Representation: Counsel: I D Faulkner SC / A J McInerney SC (Plaintiff) M R Elliott (First Defendant) JAN Hogan-Doran / B J Lloyd (Second Defendant) M Christie SC / H Pintos-Lopez (Third Defendant) Solicitors: Carneys Lawyers (Plaintiff) McCabes Lawyers (First Defendant) Winter Hilditch & Fotheringham Lawyers (Second Defendant) Cummins (Third Defendant) File Number(s): 2009/298865