Perre, Frank & Ors v Apand Pty Ltd (ACN 003 566 870) Apand Pty Ltd (ACN 003 566 870) v Sparnon, David Charles & Ors [1997] FCA 1275

Perre, Frank & Ors v Apand Pty Ltd (ACN 003 566 870) Apand Pty Ltd (ACN 003 566 870) v Sparnon, David Charles & Ors [1997] FCA 1275

APAND owed and breached a duty of care to the Sparnons by supplying seed potatoes with a known risk of infection from the Koo Wee Rup area, failing to take reasonable care to avoid that risk, resulting in the outbreak of bacterial wilt. APAND breached its contractual implied conditions as the seed was unfit for purpose and not of merchantable quality. However, APAND owed no duty of care to the Perre interests as there was insufficient proximity and no special relationship; the class of potential claimants was indeterminate and APAND had no knowledge or means of knowledge of specific vulnerability.

Jurisdiction
Australia
Judgment Date
21 November 1997
Procedural Posture
Appeal / Judgment After Appeal Hearing
Outcome
Both appeals dismissed
Legal Topics
['negligence' 'duty of Care' 'pure Economic Loss' 'contractual Implied Terms' 'merchantable Quality' 'statutory Liability']
['tort Law' 'contract Law'] ['negligence' 'duty of Care' 'pure Economic Loss' 'contractual Implied Terms' 'merchantable Quality' 'statutory Liability']

Case Brief

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Procedural Posture

Appeal / Judgment After Appeal Hearing

Legal Issues

  1. 1 ['Whether APAND owed a duty of care in negligence to the Sparnon partnership for supplying seed potatoes infected with bacterial wilt' 'Whether breach of contract occurred by supplying diseased seed potatoes to the Sparnons under implied conditions' 'Whether APAND owed a duty of care in negligence to the Perre interests for pure economic loss incurred due to proximity to a property infected by APAND’s seed']

Ratio Decidendi

APAND owed and breached a duty of care to the Sparnons by supplying seed potatoes with a known risk of infection from the Koo Wee Rup area, failing to take reasonable care to avoid that risk, resulting in the outbreak of bacterial wilt. APAND breached its contractual implied conditions as the seed was unfit for purpose and not of merchantable quality. However, APAND owed no duty of care to the Perre interests as there was insufficient proximity and no special relationship; the class of potential claimants was indeterminate and APAND had no knowledge or means of knowledge of specific vulnerability.

Court Disposition

Both appeals dismissed

Orders

  • ["The appeal by the Perre appellants is dismissed. The appellants pay the respondent's costs." "The appeal by APAND Pty Ltd is dismissed. The appellant pays the respondents' (Sparnon group) costs."]