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City of Boroondara v Neumann Sands Victoria - Doyles Arbitration Lawyers
City of Boroondara v Neumann Sands Victoria

City of Boroondara v Neumann Sands Victoria

CIVIC TRANSPORT SERVICES PTY LTD V WACHER PTY LTD [1999] VSC 290

Supreme Court of Victoria – 17 August 1999

FACTS

Nucleus was the author and owner of a software package called CARRY, which it customised for use by Civic. There was a service agreement between Nucleus and Civic for 1992. In October 1992 the business of Nucleus was sold to Wacher though the employees of Nucleus continued to work for the business. A representative of Wacher met the director of Civic shortly after taking over the Nucleus business, and told the director that Wacher would look after the future needs of Civic.

In November 1992 the Civic computer system crashed and when Civic attempted to reinstall the customised version of CARRY they found out that their backups had not been successful. Civic had received some advice over the telephone from Wacher when conducting a backup. Civic issued proceedings against Wacher claiming damages for negligence and breach of contract.

ISSUES

Was the service agreement between Nucleus and Civic novated so that Wacher became responsible to Civic for the obligations of Nucleus under the service contract?

Did Wacher owe a duty of care to Civic to provide proper software support services and advice to Civic?

FINDING

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End