St George Fertility Centre Pty Ltd v Clark [2011] NSWSC 1276

St George Fertility Centre Pty Ltd v Clark [2011] NSWSC 1276

Damages for breach of warranty regarding donor sperm straws are to be assessed as at the date of breach using the hypothetical cost of replacement with warranty-compliant sperm. Later regulatory changes and issues of betterment from superior replacement goods do not reduce damages unless proven and quantified by the defendant. The assessment is for the number of straws Dr Clark reasonably expected to use (2,500 less 504 used = 1,996), calculated at the replacement cost at the relevant date. Certain claimed costs were disallowed for lack of causation or evidence.

Jurisdiction
Australia
Judgment Date
25 October 2011
Procedural Posture
Civil / Assessment of Damages Following Summary Judgment on Cross Claim for Breach of Contract
Outcome
Damages assessed for breach of warranty, based on hypothetical purchase cost for 1,996 straws less offset for amount owing under deed; certain additional claimed damages disallowed; parties directed to bring in short minutes reflecting reasons and orders.
Legal Topics
['damages' 'breach of Warranty' 'assessment of Damages' 'assisted Reproductive Technology']
['contract Law' 'sale of Goods' 'health Law'] ['damages' 'breach of Warranty' 'assessment of Damages' 'assisted Reproductive Technology']

Case Brief

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Procedural Posture

Civil / Assessment of Damages Following Summary Judgment on Cross Claim for Breach of Contract

Legal Issues

  1. 1 ['Proper measure and assessment date for damages for breach of warranties in a deed for sale of donor sperm straws for assisted reproduction' 'Whether subsequent changes in law and regulation affect damages' 'Whether credit should be given for betterment where replacement sperm had superior qualities']

Ratio Decidendi

Damages for breach of warranty regarding donor sperm straws are to be assessed as at the date of breach using the hypothetical cost of replacement with warranty-compliant sperm. Later regulatory changes and issues of betterment from superior replacement goods do not reduce damages unless proven and quantified by the defendant. The assessment is for the number of straws Dr Clark reasonably expected to use (2,500 less 504 used = 1,996), calculated at the replacement cost at the relevant date. Certain claimed costs were disallowed for lack of causation or evidence.

Court Disposition

Damages assessed for breach of warranty, based on hypothetical purchase cost for 1,996 straws less offset for amount owing under deed; certain additional claimed damages disallowed; parties directed to bring in short minutes reflecting reasons and orders.

Orders

  • ['Damages to be calculated as AU$1,020,252.70 plus AU$3,024 for telephone lines, less AU$219,950.91 owed under deed, with interest;' "No damages awarded for Ms Martin's employment or additional telephone costs;" 'Parties to bring in short minutes of order and to be heard on costs.']