Ezy-Fit Engineering Group Pty Limited v Microm Nominees Pty Limited (No 2) [2024] FCA 1367

Ezy-Fit Engineering Group Pty Limited v Microm Nominees Pty Limited (No 2) [2024] FCA 1367

The quantum of damages for misleading or deceptive conduct and contractual breach is to be assessed by estimating Ezy-Fit's lost profits, determined by the use and charge out value of the FTM1000 versus the hypothetical fully functioning alternative machine, accounting for repair downtimes but not granting further ramp-up discounts, additional inflation for rectification, or deductions for plaintiff-caused crashes. Apportionment of liability under Part VIA requires that FAT HACO bear 85% and Ron Mack 15% of the loss, considering their roles, knowledge, and conduct.

Parties
First Applicant: Ezy-Fit Engineering Group Pty Limited (ACN 060 465 385); Second Applicant: Ezy-Fit Marine Pty Limited (ACN 144 828 188); First Respondent: Microm Nominees Pty Limited (ACN 008 867 258); Second Respondent: Fabryka Automatow Tokarskich we Wroclawiu SA; Cross Claimant: Fabryka Automatow Tokarskich we Wroclawiu SA; Cross Respondent: Microm Nominees Pty Limited (ACN 008 867 258)
Jurisdiction
Australia
Judgment Date
27 November 2024
Procedural Posture
Damages/apportionment—commercial Contract and Misleading or Deceptive Conduct / Post Liability Quantum and Apportionment Determination
Outcome
Parties are to confer and provide a draft order reflecting these reasons by deadline; final orders (save costs) to be made 9 December 2024. Cross-claim to be dismissed.
Legal Topics
Damages, Lost Profits, Misleading or Deceptive Conduct, Apportionment of Liability, Breach of Contract, Assessment of Evidence, Quantum Hearing
Commercial Law Corporations Law Contracts Competition and Consumer Law Damages Lost Profits Misleading or Deceptive Conduct Apportionment of Liability +3 more

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Parties

Ezy-Fit Engineering Group Pty Limited (ACN 060 465 385)

First Applicant

Ezy-Fit Marine Pty Limited (ACN 144 828 188)

Second Applicant

Microm Nominees Pty Limited (ACN 008 867 258)

First Respondent

Fabryka Automatow Tokarskich we Wroclawiu SA

Second Respondent

Fabryka Automatow Tokarskich we Wroclawiu SA

Cross Claimant

Microm Nominees Pty Limited (ACN 008 867 258)

Cross Respondent

Procedural Posture

Damages/apportionment—commercial Contract and Misleading or Deceptive Conduct / Post Liability Quantum and Apportionment Determination

Legal Issues

  1. 1 Determination of inputs for assessment of lost profits
  2. 2 Appropriate end date for loss of profits claim
  3. 3 Actual utilisation of FTM1000 for damages assessment

Ratio Decidendi

The quantum of damages for misleading or deceptive conduct and contractual breach is to be assessed by estimating Ezy-Fit's lost profits, determined by the use and charge out value of the FTM1000 versus the hypothetical fully functioning alternative machine, accounting for repair downtimes but not granting further ramp-up discounts, additional inflation for rectification, or deductions for plaintiff-caused crashes. Apportionment of liability under Part VIA requires that FAT HACO bear 85% and Ron Mack 15% of the loss, considering their roles, knowledge, and conduct.

Court Disposition

Parties are to confer and provide a draft order reflecting these reasons by deadline; final orders (save costs) to be made 9 December 2024. Cross-claim to be dismissed.

Orders

  • Parties to confer and provide a minute of proposed orders by 4.00 pm AWST on 5 December 2024 reflecting these reasons and Ezy-Fit No 1, final orders to be made 9 December 2024.
  • Cross-claim is to be dismissed.