Flowfill Packaging Machines Pty Ltd v Fytore Pty Ltd (1993) Aust Torts Reports 81-244
Tort; conversion and detinue; refusal to return another's goods.
Facts: Fytore leased three packaging machines from Flowfill. Fytore then defaulted on the lease. This entitled Flowfill to demand the return of the machines within 10 days. After some delay, Flowfill formally terminated the lease and demanded the return of the machines. Negotiations followed, but did not succeed. The machines were not returned and Flowfill did not attempt to collect them.
Issue: Was Fytore liable for conversion or detinue of the machines?
Decision: In the circumstances, the failure to return the machines after the formal termination of the lease constituted a conversion of the machines by Fytore, but not detinue.
Reason: Detinue requires an unconditional and unambiguous refusal to return the goods in question. The court held that it was sufficient for the defendant to make the goods available to the plaintiff by saying where they were and indicating that repossession would not be obstructed. Flowfill knew where the machines were and could have collected them without hindrance.