McMullin, Brian & Anor v ICI Australia Operations Pty Ltd & Ors [1997] FCA 1298

McMullin, Brian & Anor v ICI Australia Operations Pty Ltd & Ors [1997] FCA 1298

Damages for losses caused by negligent contamination of cattle with chlorfluazuron are recoverable to the extent that such losses were reasonably foreseeable at the time and causally connected to the contamination, including consequential losses to non-contaminated cattle or related farming operations, provided the actions taken by claimants were reasonable responses to the contamination and not assessed with hindsight. However, additional speculative market price premiums or losses unsupported by evidence were to be excluded. Interest on damages is recoverable at 12% from dates of loss or expenditure; taxation consequences are ignored in the assessment.

Jurisdiction
Australia
Judgment Date
27 November 1997
Procedural Posture
Judgment on Damages / Post Liability Judgment on Quantification of Damages
Outcome
Judgment for the applicants and group members with damages to be quantified in accordance with court's rulings; detailed amounts to be calculated and orders to be finalised in chambers.
Legal Topics
['damages' 'negligence' 'economic Loss' 'causation' 'mitigation of Loss' 'interest on Damages' 'taxation of Damages']
['tort' 'product Liability'] ['damages' 'negligence' 'economic Loss' 'causation' 'mitigation of Loss' 'interest on Damages' 'taxation of Damages']

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Procedural Posture

Judgment on Damages / Post Liability Judgment on Quantification of Damages

Legal Issues

  1. 1 ['Recoverability of losses by claimants due to cattle contamination with chlorfluazuron (CFZ)' 'Foreseeability and recoverability of consequential losses, including with non-contaminated cattle' 'Method of calculating damages (including market effects and use of price premiums)' 'Recoverability of costs of feed, agistment, lost trading, delayed sales, and injury from agistment' "Mitigation of loss, reasonableness of claimant's actions, and proper use of hindsight in assessment"]

Ratio Decidendi

Damages for losses caused by negligent contamination of cattle with chlorfluazuron are recoverable to the extent that such losses were reasonably foreseeable at the time and causally connected to the contamination, including consequential losses to non-contaminated cattle or related farming operations, provided the actions taken by claimants were reasonable responses to the contamination and not assessed with hindsight. However, additional speculative market price premiums or losses unsupported by evidence were to be excluded. Interest on damages is recoverable at 12% from dates of loss or expenditure; taxation consequences are ignored in the assessment.

Court Disposition

Judgment for the applicants and group members with damages to be quantified in accordance with court's rulings; detailed amounts to be calculated and orders to be finalised in chambers.

Orders

  • ['First, second, and third respondents to pay to Peter Long & Co, solicitors for the applicants, specified sums in satisfaction of claims of named applicants and group members by 12 December 1997, amounts to be agreed and submitted as Short Minutes of Order.']