Court of Appeal upholds decision in dispute regarding mining services agreement

Contact: James Plumb, Partner and Duncan Lomas, Solicitor

In Agripower Australia Ltd v Coleman & Anor [2015] QCA 266, the Court of Appeal has rejected an appeal by Agripower Australia Ltd (Agripower) against the earlier decision of Coleman v Prentice & Anor [2015] QSC 118. Agripower holds a mining lease over a large deposit of diatomaceous earth in North Queensland.

At first instance, John and Dianne Coleman (respondents) were successful in a claim brought against Agripower for outstanding payments for the services they provided to Agripower in respect of its mining operations. Agripower failed to pay a series of invoices, resulting in the respondents withdrawing their services. Agripower denied that the respondents were due any outstanding payments for the services rendered, and counterclaimed against the respondents for a loss of profit allegedly suffered by reason of the respondents’ failure to process the diatomaceous earth with appropriate care and skill.

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