These figures are exclusive of GST and the $191,294 figure does not appear to be that on the invoices which total $191,105.16.
27 In Reglon Pty Limited v Hill & Ors [2006] NSWSC 1360 I set out my understanding of the law on intermixture at paragraphs 22 and 23 as follows:
22 It is not necessary to embark on a discussion of this subject from Roman law to the present day. Despite the strongly pressed arguments of Mr Coles QC, I think it clear that it is not essential that goods or products such as oil, sugar or cotton be mixed together in one vessel or container so as to merge in one substance for the general principles of co-mixture law to be brought into play. It is true Bramwell B is reported to have said in Smith v Torr [1862] 3 F&F 505 that the doctrine of confusion of property did not apply to distinct chattels like chairs and tables but to commodities "such as corn, wine, oil and the like of which there can be commingling of substance". Generally speaking in 1862 people could identify their furniture, but the doctrine has been applied in Canada to logs of wood: McDonald v Lane (1882) 7 SCR 462. I can see no reason to require a commingling of substances as distinct from a mixing of many types of identical items, when the ownership of a particular one of such items is impossible to tell from other items of the same type. The evidence is that apart from painting colours on items of scaffolding, such as those in issue in these proceedings, they cannot be distinguished one from another. I hold that commingling occurred.
23 The law in such a case can I think be stated as follows: Where there is wrongful intermingling of a substance or substances by one party, the whole belongs to the other party; where the intermingling is not wrongful, the whole is shared in common ownership in the proportions each has contributed; and perhaps in a case where there has been no intermingling of a substance, yet the mingling is wrongful, the innocent party should share in the whole, to the extent of his property introduced to the whole in a case where the contributions of the wrongdoer cannot be established or the case where both contributions cannot be satisfied. Sandeman & Sons v Tyzack & Branfoot Steamship Co Ltd [1913] AC 680 at 694. The subject is discussed in various texts including Vaines: Personal Property 4th Edition 1967 at 387 and Helmore Commercial Law and Personal Property in New South Wales 10th Edition 1992 page 40. In the present case the mixing was not shown to be authorised yet there is no mixing of substance. In those circumstances as between the owners entitled to claim and Action, I would hold that Reglon was entitled to recover from the articles painted red, equipment to the amount claimed in the summons. However, the matter is not as simple as that.
28 That case went on appeal to the Court of Appeal where in paragraphs 86 to 95 this summary of the law was confirmed as correct.
29 In the present case it is important to consider the full passage of Lord Moulton in Sandeman & Sons v Tyzack & Branfoot Steamship Co Ltd [1913] AC 680 at 694 which I paraphrased in Reglon. It commences at page 694 and is as follows:
My Lords, if we proceed upon the principles of English law, I do not think it a matter of difficulty to define the legal consequences of the goods of "A." becoming indistinguishably and inseparably mixed with the goods of "B." If the mixing has arisen from the fault of "B.," "A." can claim the goods. He is guilty of no wrongful act, and therefore the possession by him of his own goods cannot be interfered with, and if by the wrongful act of "B." that possession necessarily implies the possession of the intruding goods of "B.," he is entitled to it (2 Kent's Commentaries, 10th ed., 465). But if the mixing has taken place by accident or other cause, for which neither of the owners is responsible, a different state of things arises. Neither owner has done anything to forfeit his right to the possession of his own property, and if neither party is willing to abandon that right the only equitable solution of the difficulty, and the one accepted by the law, is that "A." and "B." become owners in common of the mixed property.