Hubbards Pty Ltd v Simpson Ltd [1982] FCA 82

Hubbards Pty Ltd v Simpson Ltd [1982] FCA 82

Hubbards established, on the balance of probabilities, that Simpson Limited engaged in resale price maintenance contrary to s. 48 of the Trade Practices Act, leading to economic loss for Hubbards, primarily through loss of profit from lost sales. The correct method of assessment was a comparison of the position with and without the contravention, adopting a 10% profit margin on lost sales, with a deduction for credit card charges and allowing for acceleration of tax loss consumption. Hubbards did not fail to mitigate its loss. No interest was awarded.

Parties
Applicant: Hubbards Pty. Limited; Respondent: Simpson Limited
Jurisdiction
Australia
Judgment Date
23 April 1982
Procedural Posture
Damages Claim Under Trade Practices Act 1974 (cth) S. 82 / Judgment After Trial
Outcome
Judgment for the applicant (Hubbards Pty. Limited) against the respondent (Simpson Limited) for damages.
Legal Topics
Resale Price Maintenance, Assessment of Damages, Causal Connection for Damages, Mitigation of Loss, Interest on Damages
Trade Practices Law Competition Law Resale Price Maintenance Assessment of Damages Causal Connection for Damages Mitigation of Loss Interest on Damages

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Parties

Hubbards Pty. Limited

Applicant

Simpson Limited

Respondent

Procedural Posture

Damages Claim Under Trade Practices Act 1974 (cth) S. 82 / Judgment After Trial

Legal Issues

  1. 1 Whether Simpson Limited engaged in resale price maintenance contrary to s. 48 of the Trade Practices Act 1974
  2. 2 Whether there is a sufficient causal connection between Simpson's conduct and Hubbards' claimed loss or damage under s. 82
  3. 3 Whether the principles of tort or contract should apply to the assessment of damages

Ratio Decidendi

Hubbards established, on the balance of probabilities, that Simpson Limited engaged in resale price maintenance contrary to s. 48 of the Trade Practices Act, leading to economic loss for Hubbards, primarily through loss of profit from lost sales. The correct method of assessment was a comparison of the position with and without the contravention, adopting a 10% profit margin on lost sales, with a deduction for credit card charges and allowing for acceleration of tax loss consumption. Hubbards did not fail to mitigate its loss. No interest was awarded.

Court Disposition

Judgment for the applicant (Hubbards Pty. Limited) against the respondent (Simpson Limited) for damages.

Orders

  • Judgment for Hubbards Pty. Limited in the sum of $52,373.00
  • Simpson Limited to pay the costs of Hubbards Pty. Limited of this proceeding.