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ARTICLE · 19 DECEMBER 2018

Dire hire triangle: Court considers hire charges for CHEP pallets in messy situation

Holding Redlich
Holding Redlich
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The decision highlights the reluctance of courts to make formal orders for the retrospective alteration of CHEP accounts.

AustraliaLitigation, Mediation & Arbitration

A recent decision of the County Court of Victoria has confirmed the importance of proper maintenance of CHEP accounts.

In Redox v Swan Hill Chemicals & Ors (2018) VCC 531, the court dismissed a claim by Redox, which had sought orders for the retrospective removal of pallets from its CHEP account.

In addition to bearing its own costs, Redox was ordered to pay the legal costs of the three defendants to the proceeding. These legal fees were significant. This decision is the latest in a long line of litigation arising out of the CHEP pooled pallet system.

Key facts

In May 2012, Swan Hill, the first defendant, placed an order with Redox for a large quantity of calcium nitrate, destined for agribusiness Olam Orchards Australia (Olam), later named as the third defendant. Redox supplied the calcium nitrate to Swan Hill via a facility in Altona, operated by Redox's agent, Secon.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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