You have bought defective goods from a supplier, which has
caused damage to your property. You refuse to pay for those goods,
so the supplier sues you. You defend the claim on the basis that
the supplier has given you defective goods, but you do not yet
pursue your claim for damages - you want to see how this claim
plays out before going to the cost of pursuing your own.
You reach a settlement with the supplier, which makes no
reference to any claim for damages you might have, and then
commence your own claim against the supplier. But is it too late?
Have you lost the opportunity to pursue your claim?
In Port of Melbourne Authority v Anshun
Pty Ltd [1981] HCA 45, the High Court laid down the principles
which came to be known as "Anshun estoppel". In essence,
a party can be prevented from making claims which should have been
pursued in the former proceedings.
