Case Brief example

The following Case Brief (also known as a Case Note) is on the case of JJ Savage & Sons Pty Ltd V Blakney (1970) CLR 435:

http://www.austlii.edu.au/cgi-bin/sinodisp/au/cases/vic/VicRp/1973/37.html?stem=0&synonyms=0&query=JJ%20Savage

Citation:
JJ Savage & Sons Pty Ltd V Blakney (1970) 119 CLR 435

The Court:
- High Court of Australia
- Barwick CJ, Menzies, Owen, and Walsh JJ (unanimous decision, single judgement)

Procedural History:
- First instance: Supreme Court of Victoria (P, Blakney - lost)
-  Second instance: Full Court of Supreme Court of Victoria (App Blakney - appeal successful)
- Present matter: High Court (App JJ Savage)

Facts:
- Blakney (Resp) entered into a contract with JJ Savage & Sons (App) for the supply of an engine for a boat.
- JJ Savage & Sons (App) gave Blakney (Resp) advice on three different engines they had for sale and made a recommendation for a preferred option.
- Blakney (Resp) purchased an engine from JJ Savage & Sons (App) on the basis of this recommendaiton.
- Blakney (Resp) claimed a breach of collateral warranty.

• The warranty was "that the said cruiser when fitted with a 4/53 series diesel marine engine..." would have an estimated maximum speed of 15 miles per hour.

Issues: Factual / Legal

- Did the contract contain a collateral warranty that the boat would travel at an estimated maximum speed of 15 miles per hour?

Reasoning:
- The fact that JJ Savage made a statement regarding the maximum speed of the boat was not in and of in itself sufficient to ground a collateral warranty [12].
- To establish a collateral warranty, the statement that has been relied upon must be 'promissory' in nature, and nore merely a representation [10]-[11].
- The words 'estimated speed' indicate an opinion, not a promissory statement [10].
- The High Court said that, on receipt of the advice, Blakney could have requested to make the maximum speed of the boat a term of the contract, or obtain a promise that the boat would attain the stipulated speed prior to ordering the boat [12].
- By Blakney simply relying on the advice of JJ Savage to form his own judgement, Blakney failed to establish that the statement was promissory in nature [12].

Ratio:
- For a collateral warranty to arise:

• There must have been a promissory statement
• That statement must have been relied upon, and
• That statement must have induced the party to enter into the contract.

Obiter:

- 'The Full Court seems to have thought it sufficient in order to establish a collateral warranty that without the statement as to the estimated speed the contract of purchase would never have been made' [11].

Held:
- Decision: the statement made by JJ Savage & Sons was not promissory in nature, therefore it did not give rise to a collateral warranty.
- Order: 'Appeal allowed with costs. Order of the Full Court of the Supreme Court of Victoria set aside and in lieu thereof order that the appeal to that court be dismissed with costs'

Catherine Greentree - Macquarie Law School, Case Analysis (2015) Case Brief