TREGIDGA V PASMA HOLDINGS PTY LTD

[2021] FCA 721, Federal Court of Australia, Reeves J, 28 June 2021

Admiralty – Vessel ownership – Tort – Claim for damages against maritime electrical contractor arising from fire on board vessel – Breach of contract – Statutory guarantee or negligence with regard to the fire – Whether applicants owners of vessel at time of fire – Whether applicants parties to contracts relating to electrical works conducted on the vessel – Whether applicants “consumers” – Whether duty of care in tort owed to applicants by respondent – Whether scope of duty of care owed by respondent extended to taking steps to prevent fire – Whether duty of care affected by terms of contracts – Whether breach of duty of care – Determination of causation – Application dismissed – Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010 (Cth), section 60

The claimants’ motor yacht Miss Angel had on 8 June 2016 sustained extensive fire damage from a fire starting in the engine room. On the day of the fire, T, an electrician employed by the defendant had been undertaking work on board. The claimants sought damages alleging that the fire was caused by the defendant’s breach of contract, breach of statutory guarantee or T’s negligence. Questions arose as to the ownership of the vessel. The claimants had intended to import Miss Angel to Australia through a company, A, set up by them for the purpose of operating a business with the vessel. For the sake of speed, the vessel was imported registered as a private leisure vessel in the names of the claimants. Questions also arose as to the contractual relationship between the parties. Before she could be employed in the business, works were needed to achieve the Australian commercial survey standard, including electrical works. The parties had made an oral agreement for the work and it was performed on 8 June 2016 and invoiced by the defendant a few days later to A. The invoice was paid by the second claimant from her personal bank account.