Australian Development Corporation v Allco Steel Corporation [1999] NSWSC 736

Australian Development Corporation v Allco Steel Corporation [1999] NSWSC 736

Because ADC had changed the relevant part of the Quadrant project from steel to reinforced concrete before Allco's conversion, the converted raw and fabricated steel was no longer required by ADC for its original purpose and there was no evidence ADC had another use for it. Replacement cost was therefore not the proper compensatory measure. Nor was Allco's sale price to Balcomb accepted as the proper value, because ADC likely would have sought the best available price and other avenues of disposal existed. Using the evidentiary figures as guides where precise calculation was impossible or inappropriate, the proper damages for conversion were assessed at $475,000.

Jurisdiction
Australia
Judgment Date
30 July 1999
Procedural Posture
Tort Claim for Damages for Conversion of Steel / Assessment of Quantum of Damages After Liability Was Determined Separately
Outcome
First defendant ordered to pay the plaintiff damages of $475,000 for conversion of the plaintiff's steel; interest and costs reserved for later argument.
Legal Topics
['conversion of Steel' 'measure of Damages in Conversion' 'replacement Value' 'value of Goods Specially Manufactured or Specially Acquired for Specific Use' 'effect of Change in Intended Use Before Conversion' 'assessment of Damages Where Accurate Calculation Is Impossible or Inappropriate']
['tort' 'damages' 'construction'] ['conversion of Steel' 'measure of Damages in Conversion' 'replacement Value' 'value of Goods Specially Manufactured or Specially Acquired for Specific Use' 'effect of Change in Intended Use Before Conversion' 'assessment of Damages Where Accurate Calculation Is Impossible or Inappropriate']

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Procedural Posture

Tort Claim for Damages for Conversion of Steel / Assessment of Quantum of Damages After Liability Was Determined Separately

Legal Issues

  1. 1 ["Whether ADC's damages for Allco's conversion of steel should be assessed by the reasonable cost of replacement of the raw and fabricated steel." 'Whether, before conversion, ADC no longer required the steel for the Quadrant project because the relevant part of the project changed from steel to reinforced concrete construction.' "Whether damages should instead be based on the price obtained by Allco on sale to Balcomb or on a higher market-disposal figure supported by ADC's expert evidence."]

Ratio Decidendi

Because ADC had changed the relevant part of the Quadrant project from steel to reinforced concrete before Allco's conversion, the converted raw and fabricated steel was no longer required by ADC for its original purpose and there was no evidence ADC had another use for it. Replacement cost was therefore not the proper compensatory measure. Nor was Allco's sale price to Balcomb accepted as the proper value, because ADC likely would have sought the best available price and other avenues of disposal existed. Using the evidentiary figures as guides where precise calculation was impossible or inappropriate, the proper damages for conversion were assessed at $475,000.

Court Disposition

First defendant ordered to pay the plaintiff damages of $475,000 for conversion of the plaintiff's steel; interest and costs reserved for later argument.

Orders

  • ["1st defendant to pay damages of $475,000 to the plaintiff for conversion of the plaintiff's steel." 'Within 14 days the parties are to advise the Court of a convenient date to hear the question of interest and costs.' 'Counsel were directed to approach the Associate within 14 days of the handing down of the...