Re Jillawarra Grazing Company v John Shearer Limited 1984 FCA 30 27 February 1984.docx
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Re Jillawarra Grazing Company v John Shearer Limited 1984 FCA 30 27 February 1984.docx
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ReJillawarraGrazingCompanyvJohnShearerLimited1984FCA3027February1984
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ReJillawarraGrazingCompanyvJohnShearerLimited[1984]FCA30(27February1984)
FEDERALCOURTOFAUSTRALIA
Re:
JILLAWARRAGRAZINGCOMPANY
And:
JOHNSHEARERLIMITED
No.WAG9of1982
(1984)ATPRpara40-441
TradePractices
COURT
INTHEFEDERALCOURTOFAUSTRALIA
WESTERNAUSTRALIADISTRICTREGISTRY
GENERALDIVISION
TooheyJ.
CATCHWORDS
TradePractices-saleofairseeder-allegeddefectsinterferingwithseeding-claimforfinancialloss-whetherallegedrepresentationsmisleadingordeceptiveconduct-whetherfailuretowarnpotentialpurchasersofproblemsassociatedwithuseofhydromotor-misleadingordeceptiveconduct-meaningof"merchantablequality"-whetherairseederreasonablyfitforpurposeforwhichrequired-relationshipbetweenmisleadingordeceptiveconductandbreachofimpliedconditionsofmerchantablequalityandfitnessforpurpose-meaningof"personal,domesticorhouseholduseorconsumption"-claimforbreachofexpresswarranties
TradePracticesAct1974 ss.52, 55, 68, 71,74B 74 and74G
HEARING
PERTH
27:
2:
1984
ORDER
1.Theapplicant'sclaimbedismissed.
2.TherebepaidoutofCourttotherespondent'ssolicitorsthemoneypaidintoCourtbytherespondent.
3.ThequestionofthecostsoftheapplicationbeadjournedtoChambers.
DECISION
Introduction
2.Thehearingofthisapplicationhasfollowedasomewhatchequeredcourse.ItbeganinMaylastyearbut,duetoseveralundulyconservativeestimatesofthetimethematterwaslikelytotake,thehearingbecamefragmentedandtheevidencedidnotconcludeuntillateSeptember.BythattimeIhadasubstantialcommitmentforthreemonthswhichmadeitimpossibletofindthenumberofdaysthoughtnecessaryforfinaladdresses.Counselacceptedasuggestionthattheyprepareaddressesintheformofwrittensummariesandspeaktothosesummarieswhentimebecameavailable.
3.Thisprovedausefulcourse,particularlyasthelengthofthesummariesmadeitclearthatoraladdresseswouldhavetakenmorethanaweek.TimebecameavailableinDecemberandcounselspoketotheirwrittensubmissionsoveraperiodof2days.
TheParties
4.Ishallsaysomethingaboutthepartiesinvolvedinthisapplication.JillawarraGrazingCompany("Jillawarra"),theapplicant,isafirmengagedinfarmingaroundGeraldton.TheprincipalofthefirmisVaughanCharlesBunter.ItwasMr.Bunterwhoconducteddealingsonbehalfoftheapplicantwiththerespondentanditwashewhogavetheprincipalnon-technicalevidenceontheapplicant'sbehalf.AnyreferenceinthesereasonstoMr.Buntermaybetakenasareferencetotheapplicant.
5.Mr.Bunterhasbeenfarmingsince1958and,apartfromoneyearintheNorthamarea,hehasfarmedaroundGeraldton,firstatMingenewandlaterintheChapmanValley.Heisanexperiencedwheatandsheepfarmer.
6.Therespondent,JohnShearerLimited("JohnShearer"),isawellknownmanufactureroffarmmachinery.Ithasanationalandinternationalreputationforitsproducts.
TheJohnShearerAirseeder
7.ThisapplicationisconcernedwithaJohnShearerairseederboughtbytheapplicantfromtherespondent.
8.Theairseederrepresentsasignificantdevelopmentinfarmmachineryandisnowusedbymanyfarmersinsteadoftheconventionalseeddrillorcombine.Itisbothacultivatingandseedingunit.
9.TheJohnShearerunitcomprisesahopper,holdinggrainandfertilizer.Thespecificationslistitscapacityas1220kgofwheatand1630kgoffertilizer.Thehopperismountedonachassisandwheelsandisdrawnbyatractor.Inturntheairseederdrawsacultivatorbar;a79tyneFieldspanisstandardforthisunit.Themovementofgrainorfertilizerisactivatedbyafanorblowerdrivenbyairpressure.Thematerialispropelledfrombelowthebinsthroughaseriesofprimaryhoses,eachfeedingasub-dividerhead,whichinturnfeedsanumberofsowingtynesthroughsecondaryhoses.Thecaseproceededonthebasisthatonastandardunitthereare10primaryhosesand100secondaryhoses.IexpressitthatwaybecauseInotethatthebrochure(exhibit1)refersto10primaryhoses,"eachsubdividingintoeightsecondaryhoses".
10.Usuallythesourceofmotorpowerforanairseeder'sfanisapowertake-offonthetractor.Howeversometractorsarenotequippedwithpowertake-off;inthateventtheoperatoroftheairseederisdependentonanothersourceofpower-petrolmotor,dieselmotororhydromotor.Inthepresentcaseahydromotorwasfittedtothetractorandthisfactorplayedalargepartintheevidenceandintheargumentspresentedtothecourt.
11.Itwillbenecessarytosaymoreaboutthestructure,mechanismandoperationoftheJohnShearerairseederbutthedescriptionjustgivenisenoughtodepictthetypeofmachinerywithwhichthisapplicationisconcerned.
TheClaim
12.Theclaimisfordamagesformisleadinganddeceptivestatements,incontraventionof ss.52 and 55 ofthe TradePracticesAct1974,forbreachofconditionsofmerchantablequalityandfitnessforpurposeimpliedby s.71 oftheAct,fordamagespursuanttoss.74B,74Fand74GoftheActandforbreachofwrittenwarranties.Seriousquestionsoflawandoffactareinvolved.
Pre-contractNegotiations
13.ItiscommongroundthatinOctober1978JillawarraboughtfromJohnShearer,throughtheagencyofMurchisonMachineryPty.Ltd.,a40'airseederfor$14,805.
14.Paragraph6ofthestatementofclaimpleadsthatduringthecourseofnegotiationswithMurchisonMachineryMr.Buntermadeknowntoanofficerorofficersofthatcompany"expresslyorbynecessaryimplication"thattheairseederwasforusebyJillawarra"inordinaryseedingoperationsonitswheatandgrainpropertiesintheGeraldtonDistrictoftheStateofWesternAustralia".ThedefencedoesnotadmitanyoftheallegationsinthatparagraphbutitisapparentfromtheevidenceofMr.BunterandofMr.Hosken,MurchisonMachinery'smanager,thattheallegationsinpara.6weremadeout.Indeed,giventhelocationofJillawarra'sfarmingactivities,asknowntoMr.Hosken,andthenatureofthemachinery,theallegationsareselfevident.
15.Howeverparas7and8ofthestatementofclaimpleadthatduringthecourseofnegotiationsJillawarrawassuppliedwithaprintedbrochuredescribingtheJohnShearerairseederandcontainingafairlydetaileddescriptionofitssowingratesandotherattributes.Thebrochurewasalsosaidtorefertoanddescribeamonitor,aninstrumentsitedinthetractorcabtoindicatethespeedoffanrotationandtheoperationofothercomponentsoftheairseeder.
16.Thatsuchabrochureexistsisnotinissue;onewasproducedatthehearing.ButwhatisinissueiswhetheronewasshowntoMr.BunteratthetimehewasnegotiatingthepurchaseoftheairseederandwhetheroneexistedinOctober1978.ThematterisofimportancebecauseJillawarrareliesuponstatementsinthebrochureasconstitutingrepresentationsuponwhichitreliedinagreeingtobuytheairseeder.And,althoughnotexpresslypleaded,itarguesthatthosestatementsamountedtomisleadingordeceptiveconduct.
17.Inhisopeningaddress,counselfortheapplicantproducedadocument,subjecttoproof,asthebrochurereferredtoinpara.7ofthestatementofclaim.Mr.Hosken,whowascalledbytheapplicant,wasshownthebrochureandagreedthathehadgivenacopyofthatdocumenttoMr.Bunter.Itwasthenadmittedinevidenceasexhibit1.
18.WhenMr.Bunterbeganhisevidencehewasshownabrochurewhichwasidenticaltoexhibit1saveastoareferencetothenumberofsplinesonthedriveandastotheidentityofparticularfarmerswhocontributedtestimonials.Thatbrochurewasadmittedinevidenceasexhibit14.ItemergedthatMr.Bunterobtainedthatdocumentsometimein1980fromanotherJohnShearerdealer,McIntoshandSon,andthathedidsoinconnectionwithaclaimheintendedmakingagainstJohnShearer.Counsels'submissionssuggestthatexhibit1wasthedocumentobtainedfromMcIntoshandSonbutanexaminationofthetwobrochurespointstoexhibit14.ThatdocumentcontainscommentsinMr.Bunter'shandwritingandisendorsed"McIntoshandSon".NothingturnsonwhetherthedocumentobtainedbyMr.Bunterin1980wasexhibit1orexhibit14.
19.InhisclosingaddresscounselforJohnSheareraccusedMr.Bunterofduplicityinnotdisclosingattheoutsetthesourceofthebrochure.IdonotthinkthatMr.Bunterwastryingtomisleadthecourtthoughtheuseofthetwobrochurestendedtoconfuse.
20.AconsiderationoftheevidencedoesnotwarrantaconclusionthatMr.BunterwastryingtosuggestthatthebrochurecamefromMurchisonMachinery.Indeed,notwithstandingMr.Hosken'sacknowledgementthathegaveabrochuretoMr.Bunter,thelatterwasadamantthathewasnotgivenoneatthetimeofpurchase.FromtheentiretyofMr.Bunter'sevidence(andsomeofhisanswerswerehardtoreconcilewithothers)IamnotsatisfiedthathewasevenshownsuchabrochurethoughhemayhavebeenshownorhadreadbyMr.Hoskenportionsofsome"promotionalliterature",tousethewitness'words.
21.Theapplicanthasfailedtoestablishthatitwas"suppliedwithawrittenbrochure".Irejecttheapplicant'scasesofarasitreliesuponstatementsinthebrochureascontributingmisleadingordeceptiveconductorasrepresentations,warrantiesortermsofpurchase.
22.IhavenodoubtthatMr
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- Re Jillawarra Grazing Company John Shearer Limited 1984 FCA 30 27 February
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