Pangallo Estate Pty Ltd & ors v Killara 10 Pty Ltd [2007] NSWSC 1528

Pangallo Estate Pty Ltd & ors v Killara 10 Pty Ltd [2007] NSWSC 1528

The arrangements between the growers and Ms Cecchini were contracts for winemaking services, not contracts for the sale of grapes and repurchase of wine. The parties did not intend title in the grapes or wine to pass to Ms Cecchini: she was paid a fee per tonne for contract winemaking, the wine was to be bottled or sold under the growers' labels, and the course of dealing and invoices described contract winemaking charges. Because property never passed to Ms Cecchini, she could not transfer title to Killara 10 under the lease or otherwise, and the plaintiffs were entitled to declarations for the identified wines; however, the Court was not satisfied that the alleged missing Pangallo...

Jurisdiction
Australia
Judgment Date
21 December 2007
Procedural Posture
Summons Seeking Declarations, Delivery Up Under (nsw) Civil Procedure Act 2005, S 93, and Alternatively Damages for Conversion / Ex Tempore Judgment After Hearing in the Equity Division Expedition List
Outcome
Declarations made that the plaintiffs were entitled to specified wines formerly located at the defendant's winery; defendant ordered to pay the plaintiffs' costs; the Court was not satisfied that alleged missing wines were missing or converted.
Legal Topics
['contract for Winemaking Services' 'bailment for Work and Labour' 'sale and Resale of Goods' 'passing of Property in Grapes and Wine' 'delivery Up of Wine' 'landlord Re Entry and Tenant Stock in Trade']
['personal Property' 'bailment' 'contract' 'conversion'] ['contract for Winemaking Services' 'bailment for Work and Labour' 'sale and Resale of Goods' 'passing of Property in Grapes and Wine' 'delivery Up of Wine' 'landlord Re Entry and Tenant Stock in Trade']

Case Brief

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Procedural Posture

Summons Seeking Declarations, Delivery Up Under (nsw) Civil Procedure Act 2005, S 93, and Alternatively Damages for Conversion / Ex Tempore Judgment After Hearing in the Equity Division Expedition List

Legal Issues

  1. 1 ['Whether the plaintiffs delivered their grapes to the winemaker under a contract of bailment for labour and works, in which case the plaintiffs retained title, or sold their grapes to her for resale back to the plaintiffs once made into wine, in which case title passed to the winemaker.' "If the grapes were sold to the winemaker so that title passed to her, whether Killara 10 acquired them upon forfeiture of the winemaker's leasehold interest for default under the lease." 'If the wines remained the property of the plaintiffs, whether wines claimed by the plaintiffs but not delivered up under interlocutory arrangements had been converted by Killara 10.']

Ratio Decidendi

The arrangements between the growers and Ms Cecchini were contracts for winemaking services, not contracts for the sale of grapes and repurchase of wine. The parties did not intend title in the grapes or wine to pass to Ms Cecchini: she was paid a fee per tonne for contract winemaking, the wine was to be bottled or sold under the growers' labels, and the course of dealing and invoices described contract winemaking charges. Because property never passed to Ms Cecchini, she could not transfer title to Killara 10 under the lease or otherwise, and the plaintiffs were entitled to declarations for the identified wines; however, the Court was not satisfied that the alleged missing Pangallo...

Court Disposition

Declarations made that the plaintiffs were entitled to specified wines formerly located at the defendant's winery; defendant ordered to pay the plaintiffs' costs; the Court was not satisfied that alleged missing wines were missing or converted.

Orders

  • ["Declare that the first plaintiff Pangallo Estate Pty Limited is entitled to 6,200 litres of Zibbibo formerly in tank R18, 1300 litres of 2007 Rose formerly in tank B5, and 31 barrels of 2007 Shiraz, all formerly located at the defendant's winery." "Declare that the second plaintiffs are entitled to 5,100 litres of...