Simpson Ltd v. Hubbards Pty Ltd [1982] FCA 222

Simpson Ltd v. Hubbards Pty Ltd [1982] FCA 222

Damages assessed for loss of sales due to contravention of s.48 of the Trade Practices Act 1974 should not be reduced by an allowance for income tax as such a deduction is inconsistent with the compensatory principle and may result in double taxation; the award should reflect the loss incurred, and tax losses are not to be factored in the deduction from damages.

Parties
Appellant: Simpson Limited; Respondent: Hubbards Pty. Limited
Jurisdiction
Australia
Judgment Date
20 October 1982
Procedural Posture
Appeal / Judgment
Outcome
Appeal and cross-appeal allowed; variation of damages awarded.
Legal Topics
Resale Price Maintenance, Damages, Income Tax Allowance, Assessment of Damages
Trade Practices Resale Price Maintenance Damages Income Tax Allowance Assessment of Damages

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Parties

Simpson Limited

Appellant

Hubbards Pty. Limited

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether damages for loss due to resale price maintenance should be reduced by an allowance for income tax
  2. 2 Method of assessing damages for lost sales and profits resulting from contravention of s.48 of the Trade Practices Act 1974

Ratio Decidendi

Damages assessed for loss of sales due to contravention of s.48 of the Trade Practices Act 1974 should not be reduced by an allowance for income tax as such a deduction is inconsistent with the compensatory principle and may result in double taxation; the award should reflect the loss incurred, and tax losses are not to be factored in the deduction from damages.

Court Disposition

Appeal and cross-appeal allowed; variation of damages awarded.

Orders

  • The appeal and cross-appeal be allowed.
  • The order of the Federal Court of Australia of 23 April 1982 be varied by substituting in paragraph 1 the sum of Sixty thousand five hundred and seventeen dollars ($60,517) in lieu of the sum of Fifty two thousand three hundred and seventy three dollars ($52,373).