ALLCO STEEL CORPORATION PTY LTD v AUSTRALIAN DEVELOPMENT CORPORATION PTY LTD and ANOR; AUSTRALIAN DEVELOPMENT CORPORATION PTY LTD and ANOR v ALLCO STEEL CORPORATION PTY LTD [1996] NSWCA 11

ALLCO STEEL CORPORATION PTY LTD v AUSTRALIAN DEVELOPMENT CORPORATION PTY LTD and ANOR; AUSTRALIAN DEVELOPMENT CORPORATION PTY LTD and ANOR v ALLCO STEEL CORPORATION PTY LTD [1996] NSWCA 11

Title to both the October and November steel vested in ADC once Allco was paid, by operation of contract or the 'feeding title' doctrine; the alleged estoppel or election by ADC did not preclude ADC from asserting title to the November steel, as that issue was not raised at trial, no representations were established, and there was no evidence of detrimental reliance by White. Allco, having later sold the steel, was liable in conversion, and White was not liable in conversion as it did not exercise control over the steel.

Parties
Appellant/respondent: Allco Steel Corporation Pty Ltd; Respondent/appellant: Australian Development Corporation Pty Ltd; Second Respondent: White Constructions (ACT) Pty Ltd
Jurisdiction
Australia
Judgment Date
14 November 1996
Procedural Posture
Civil Appeal / Decision on Appeal
Outcome
Allco's appeal dismissed; ADC's appeal allowed
Legal Topics
Passing of Title, Conversion, Estoppel, Contract Construction, Misrepresentation
Sale of Goods Contract Torts Passing of Title Conversion Estoppel Contract Construction Misrepresentation

Case Brief

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Parties

Allco Steel Corporation Pty Ltd

Appellant/respondent

Australian Development Corporation Pty Ltd

Respondent/appellant

White Constructions (ACT) Pty Ltd

Second Respondent

Procedural Posture

Civil Appeal / Decision on Appeal

Legal Issues

  1. 1 Whether title to October and November steel passed to ADC under the contracts and payments made
  2. 2 Whether Allco Steel converted either or both lots of steel
  3. 3 Whether 'feeding of title' estoppel applies and its conditions

Ratio Decidendi

Title to both the October and November steel vested in ADC once Allco was paid, by operation of contract or the 'feeding title' doctrine; the alleged estoppel or election by ADC did not preclude ADC from asserting title to the November steel, as that issue was not raised at trial, no representations were established, and there was no evidence of detrimental reliance by White. Allco, having later sold the steel, was liable in conversion, and White was not liable in conversion as it did not exercise control over the steel.

Court Disposition

Allco's appeal dismissed; ADC's appeal allowed

Orders

  • Appeal by Allco dismissed with costs.
  • Appeal by ADC allowed.