SW Tubes Ltd v Owen Stuart Ltd [2002] EWCA Civ 854 (16 May, 2002)

SW Tubes Ltd v Owen Stuart Ltd [2002] EWCA Civ 854 (16 May, 2002)

Owen Stuart Limited breached the contract by supplying a saw with a defective drive and without guards, rendering the machinery not of satisfactory quality under section 14 of the Sale of Goods Act 1979. However, SW Tubes Limited failed to mitigate its loss by unreasonably refusing the offer of a replacement saw, so damages are limited to the period before a replacement could have been installed. The judge's order dismissing the claim and awarding costs to Owen was wrong; SW Tubes Limited is entitled to judgment with damages to be assessed.

Citation
[2002] EWCA Civ 854
Parties
Claimant/appellant: SW Tubes Limited; Defendant/respondent: Owen Stuart Limited
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From County Court Judgment on Liability and Costs
Outcome
Appeal allowed; order of the judge set aside; judgment for SW Tubes Limited; damages to be assessed if not agreed; costs orders varied.
Legal Topics
Implied Terms, Fitness for Purpose, Merchantable Quality, Mitigation of Loss, Damages Assessment, Costs Orders
Contract Law Sale of Goods Implied Terms Fitness for Purpose Merchantable Quality Mitigation of Loss Damages Assessment Costs Orders

Case Brief

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Parties

SW Tubes Limited

Claimant/appellant

Owen Stuart Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From County Court Judgment on Liability and Costs

Legal Issues

  1. 1 Whether Owen Stuart Limited breached the contract by supplying a defective saw drive and inadequate guards
  2. 2 Whether SW Tubes Limited failed to mitigate its loss
  3. 3 Whether damages should be awarded and assessed

Ratio Decidendi

Owen Stuart Limited breached the contract by supplying a saw with a defective drive and without guards, rendering the machinery not of satisfactory quality under section 14 of the Sale of Goods Act 1979. However, SW Tubes Limited failed to mitigate its loss by unreasonably refusing the offer of a replacement saw, so damages are limited to the period before a replacement could have been installed. The judge's order dismissing the claim and awarding costs to Owen was wrong; SW Tubes Limited is entitled to judgment with damages to be assessed.

Court Disposition

Appeal allowed; order of the judge set aside; judgment for SW Tubes Limited; damages to be assessed if not agreed; costs orders varied.

Orders

  • Order of the judge below set aside
  • Judgment for SW Tubes Limited