BELZ v OSLOB PTY LTD OSLOB PTY LTD v BELZ [1989] NSWCA 19

BELZ v OSLOB PTY LTD OSLOB PTY LTD v BELZ [1989] NSWCA 19

The trial judge misdirected himself by relying on the market value based on a later sale instead of assessing repair costs as the correct prima facie measure of damages for the chattel. The appropriate test is first the cost of repair, failing which replacement cost or cost to manufacture a substitute is considered.

Parties
Appellant: Belz; Respondent: Oslob Pty Ltd
Jurisdiction
Australia
Judgment Date
15 December 1989
Procedural Posture
Appeal / Judgment on Appeal and Cross Appeal
Outcome
Appeal allowed; cross-appeal dismissed; new trial ordered on damages.
Legal Topics
Gratuitous Bailment, Measure of Damages for Chattels, Negligence in Use of Bailed Goods
Torts Damages Gratuitous Bailment Measure of Damages for Chattels Negligence in Use of Bailed Goods

Case Brief

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Parties

Belz

Appellant

Oslob Pty Ltd

Respondent

Procedural Posture

Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 What is the proper measure of damages for negligent damage to a custom-built motor vehicle under a gratuitous bailment?
  2. 2 Did the trial judge apply the correct legal test for damages?

Ratio Decidendi

The trial judge misdirected himself by relying on the market value based on a later sale instead of assessing repair costs as the correct prima facie measure of damages for the chattel. The appropriate test is first the cost of repair, failing which replacement cost or cost to manufacture a substitute is considered.

Court Disposition

Appeal allowed; cross-appeal dismissed; new trial ordered on damages.

Orders

  • Appeal is allowed with costs.
  • Cross-appeal is dismissed with no order for costs.