Major Engineering Pty Limited v CGU Insurance Limited [2009]
VSC 504
This case involved an insurance claim which was brought
following damage caused to a yacht 'Skandia' during the
Sydney to Hobart Yacht race in December 2004.
Major Engineering supplied hydraulic cylinders to Timelink
Pacific Pty Ltd (Timelink), the owners of the
Skandia. These cylinders were fitted on the Skandia. During the
yacht race, the piston rods broke causing damage to the keel and
the yacht had to abandon the race. Timelink sued Major Engineering
for loss and damage alleging that the cylinders supplied were
inadequately specified and not fit for the purpose intended. Major
Engineering contended that they merely manufactured and supplied
the product in line with the specifications requested by
Timelink's engineer.