Selective Trade Pty Limited v Ferngrove Pharmaceuticals Australia Pty Ltd & Anor [2022] NSWDC 131

Selective Trade Pty Limited v Ferngrove Pharmaceuticals Australia Pty Ltd & Anor [2022] NSWDC 131

The principal contractual documents were the written Product Exclusive Agency Agreement and accompanying account application. There was no enforceable collateral contract limiting distribution channels. Plaintiff paid the required GST-inclusive deposit. Ferngrove repudiated the contract by refusing to perform and offering to return the deposit solely due to its issues with a third party in China. Plaintiff validly accepted the repudiation and terminated the contract. Plaintiff failed to establish any actual loss aside from shipping costs, and no evidentiary basis existed for expectation or opportunity losses. Plaintiff succeeded only as to proof of breach, thereby entitling it to nominal...

Parties
Plaintiff: Selective Trade Pty Limited; First Defendant: Ferngrove Pharmaceuticals Australia Pty Ltd; Second Defendant: Wei Tang
Jurisdiction
Australia
Judgment Date
29 April 2022
Procedural Posture
Civil / Principal Judgment After Hearing
Outcome
Judgment for the plaintiff against the first defendant in the sum of $1,064.37. Judgment for the second defendant. Plaintiff to pay defendants' costs as agreed or assessed.
Legal Topics
Construction of Contract, Breach of Contract, Repudiation, Nominal Damages, Sale of Goods, Misleading and Deceptive Conduct, Australian Consumer Law
Contract Law Commercial Law Construction of Contract Breach of Contract Repudiation Nominal Damages Sale of Goods Misleading and Deceptive Conduct +1 more

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Parties

Selective Trade Pty Limited

Plaintiff

Ferngrove Pharmaceuticals Australia Pty Ltd

First Defendant

Wei Tang

Second Defendant

Procedural Posture

Civil / Principal Judgment After Hearing

Legal Issues

  1. 1 What documents comprised the contract between the parties?
  2. 2 Whether there was an enforceable Collateral Contract restricting distribution channels.
  3. 3 Whether Ferngrove repudiated the contract and consequences thereof.

Ratio Decidendi

The principal contractual documents were the written Product Exclusive Agency Agreement and accompanying account application. There was no enforceable collateral contract limiting distribution channels. Plaintiff paid the required GST-inclusive deposit. Ferngrove repudiated the contract by refusing to perform and offering to return the deposit solely due to its issues with a third party in China. Plaintiff validly accepted the repudiation and terminated the contract. Plaintiff failed to establish any actual loss aside from shipping costs, and no evidentiary basis existed for expectation or opportunity losses. Plaintiff succeeded only as to proof of breach, thereby entitling it to nominal...

Court Disposition

Judgment for the plaintiff against the first defendant in the sum of $1,064.37. Judgment for the second defendant. Plaintiff to pay defendants' costs as agreed or assessed.

Orders

  • Judgment for the plaintiff against the first defendant on the amended statement of claim in the sum of $1,064.37.
  • Judgment for the second defendant on the amended statement of claim.