National v WellingtonWellington v National [2003] NSWSC 21

National v WellingtonWellington v National [2003] NSWSC 21

The conclusions in paragraphs 122 to 130 of the referee's report were not accepted because the referee misdirected himself in applying s 19(1): the requirement of 'some nexus' was not part of the test, the reliance inquiry should focus on the respects in which National relied on Wellington's skill and judgment, and the referee wrongly treated the reasonableness of National's reliance from the buyer's perspective and other irrelevant matters as determinative.

Jurisdiction
Australia
Judgment Date
12 February 2003
Procedural Posture
Motion to Reject a Referee's Report in Sale of Goods and Contract Proceedings / Hearing After Referee's Report Under Part 72 of the Supreme Court Rules
Outcome
Conclusions of Referee not accepted.
Legal Topics
['defective Castings' 'implied Condition of Fitness for Purpose' "reliance on Seller's Skill or Judgment" "referee's Report" 'supreme Court Rules Part 72']
['sale of Goods' 'contract Law' 'civil Procedure'] ['defective Castings' 'implied Condition of Fitness for Purpose' "reliance on Seller's Skill or Judgment" "referee's Report" 'supreme Court Rules Part 72']

Case Brief

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Procedural Posture

Motion to Reject a Referee's Report in Sale of Goods and Contract Proceedings / Hearing After Referee's Report Under Part 72 of the Supreme Court Rules

Legal Issues

  1. 1 ["Whether the referee's report should be adopted or rejected under Part 72 rule 13 of the Supreme Court Rules." "Whether National relied on Wellington's skill or judgment for the purposes of s 19(1) of the Sale of Goods Act 1923." "Whether the referee erred by requiring a nexus between Wellington's skill or judgment and the lack of fitness for purpose." "Whether the referee erred by treating the reasonableness of National's reliance as determinative."]

Ratio Decidendi

The conclusions in paragraphs 122 to 130 of the referee's report were not accepted because the referee misdirected himself in applying s 19(1): the requirement of 'some nexus' was not part of the test, the reliance inquiry should focus on the respects in which National relied on Wellington's skill and judgment, and the referee wrongly treated the reasonableness of National's reliance from the buyer's perspective and other irrelevant matters as determinative.

Court Disposition

Conclusions of Referee not accepted.

Orders

  • ["The conclusions in paragraphs 122 to 130 of the referee's report were not accepted." 'The Court will hear submissions on what further steps should be taken following rejection of that part of the report.']