Question
Alex owns a silica mine in Bowen in North Queensland. Silica is a mineral used to manufacture LCD and digital screens. For the past seven
Alex owns a silica mine in Bowen in North Queensland. Silica is a mineral used to manufacture LCD and digital screens. For the past seven years, Alex has sold $5 million dollars worth of raw silica to Chris. Chris owns a silica processing plant in Townsville, Queensland.
The silica is transported by truck from the mine in Bowen to the factory in Townsville, North Queensland. Chris pays for the raw product and then processes it at his factory in Townsville. The silica is then shipped to Sinopec in Beijing, China.
There is no other raw silica deposit of this quality in Australia and it would cost Chris too much money to import silica of a similar quality from New Guinea.
Being country lads, Alex and Chris have always been happy to conduct business on a wink and a nudge over a few beers. In December 2010, Alex and Chris were at a mutual friend's wedding in Cairns when Chris asked Alex "can you supply me with silica next year?" to which Alex said "yes mate" before downing another beer.
One week later Alex informed Chris that he was intending to build his own processing facility in Bowen and no longer was going to supply Chris with silica.
Chris rings his lawyer Susan who, after considering the situation, informs Chris that he may have a viable cause of action against Alex.
1.In which court should Chris start proceedings?
2.Who will be the plaintiff and who will be the defendant?
3.Who will have the burden of proof and what will be the standard of proof?
4.What remedies should Chris seek?
5.If Chris loses the first time in Court (known as "at first instance"), to which court(s) should Chris appeal?
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