Oneflare Pty Ltd v Chernih [2016] NSWSC 1271

Supreme Court New South Wales

Medium Neutral Citation: Oneflare Pty Ltd v Chernih [2016] NSWSC 1271 Hearing dates: 14/03/2016, 15/03/2016, 16/03/2016, 17/03/2016, 18/03/2016 and 19/08/2016 Date of orders: 13 September 2016 Decision date: 13 September 2016 Jurisdiction: Equity - Commercial List Before: McDougall J Decision: Judgment for defendants on plaintiff's claim. Reserve costs. Directions for submissions on costs. Catchwords: CONTRACT – contract for search engine optimisation services – where scope and terms of retainer not fully expressed – implied contractual and common law duty to use reasonable care and skill – whether duty extended to duty to warn – whether scope and terms informed by subsequent conduct and performance of retainer – whether plaintiff or defendants responsible for design of search engine optimisation strategy – whether defendants used reasonable care and skill in the performance of the retainer

DAMAGES – pure economic loss – whether breach of retainer results in loss – where direct correlation between alleged breach and loss – assessment of expert evidence – whether discount should be allowed if damages awarded Legislation Cited: Civil Liability Act 2002 (NSW) Trade Practices Act 1974 (Cth) Fair Trading Act 1987 (NSW) Cases Cited: Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 Liverpool City Council v Irwin [1977] AC 239 Prestia v Aknar (1996) 40 NSWLR 165 Wallace v Kam (2013) 250 CLR 375 Watson v Foxman (1995) 49 NSWLR 315 Category: Principal judgment Parties: Oneflare Pty Ltd (Plaintiff) Nicholas Chernih (First Defendant) Linkbuild SEO Pty Ltd (Second Defendant) Representation: Counsel: G Lucarelli (Plaintiff) D W Robertson (Defendants)