Montile Pty Ltd v Acrydur Australia Pty Ltd [1987] FCA 762

Montile Pty Ltd v Acrydur Australia Pty Ltd [1987] FCA 762

The respondent's unqualified representation as to the suitability of 'Acrydur' resin for use in food processing areas, absent adequate ventilation qualifications, amounted to a false attribution of performance characteristics and contravened s.53(c) and s.52 of the Trade Practices Act 1974 in relation to the Kings Meadows site. The applicant was entitled to damages limited to proven loss (the cost of removing defective resin and associated works), but not further amounts allegedly settled with Coles as these settlements were not proved reasonable. No contravention was established regarding representations about 'Acryder V.E.' at the K-Mart site, as any suitability representation was...

Parties
Applicant: Montile Pty. Ltd.; Respondent: Acrydur Australia Pty. Ltd.
Jurisdiction
Australia
Judgment Date
21 December 1987
Procedural Posture
Civil / First Instance
Outcome
Judgment for the applicant on the claim; judgment for the respondent on the cross-claim.
Legal Topics
Misrepresentation, Breach of Statutory Duty, Damages, Cross Claim, Fit for Purpose, Merchantable Quality
Trade Practices Contracts Misrepresentation Breach of Statutory Duty Damages Cross Claim Fit for Purpose Merchantable Quality

Case Brief

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Parties

Montile Pty. Ltd.

Applicant

Acrydur Australia Pty. Ltd.

Respondent

Procedural Posture

Civil / First Instance

Legal Issues

  1. 1 Whether the respondent misrepresented the performance characteristics of Acrydur resin under s.52 and s.53(c) of the Trade Practices Act 1974.
  2. 2 Whether applicant suffered recoverable damages as a result of the misrepresentation at the Kings Meadows site.
  3. 3 Whether representations about 'Acryder V.E.' resin were misleading or deceptive in relation to the K-Mart site.

Ratio Decidendi

The respondent's unqualified representation as to the suitability of 'Acrydur' resin for use in food processing areas, absent adequate ventilation qualifications, amounted to a false attribution of performance characteristics and contravened s.53(c) and s.52 of the Trade Practices Act 1974 in relation to the Kings Meadows site. The applicant was entitled to damages limited to proven loss (the cost of removing defective resin and associated works), but not further amounts allegedly settled with Coles as these settlements were not proved reasonable. No contravention was established regarding representations about 'Acryder V.E.' at the K-Mart site, as any suitability representation was...

Court Disposition

Judgment for the applicant on the claim; judgment for the respondent on the cross-claim.

Orders

  • Applicant awarded $2191 with costs to be taxed (excluding costs of amending the statement of claim).
  • Respondent awarded $6714.70 with costs in the cross-claim, including costs of prior County Court action in default of agreement.