State of New South Wales v. R.T. & Y.E. Falls Investments Pty. Ltd.; R.T. & Y.E. Falls Investments Pty. Ltd. v. State of New South Wales [2003] NSWCA 54

State of New South Wales v. R.T. & Y.E. Falls Investments Pty. Ltd.; R.T. & Y.E. Falls Investments Pty. Ltd. v. State of New South Wales [2003] NSWCA 54

The Court of Appeal held that the primary judge's finding that Dr Salmon said approval was highly likely, rather than that approval had been given, should not be disturbed. That finding defeated FI's contract claim and did not support an equitable estoppel. The Fair Trading Act claim also failed because the relevant representations were made in the administration of a governmental cattle disease eradication and compensation scheme, not in the course of carrying on a business or in trade or commerce. The negligence claim could not be finally resolved because the primary judge's findings were incomplete and the claim required reconsideration as to duty, breach, causation and damages.

Jurisdiction
Australia
Judgment Date
25 March 2003
Procedural Posture
Appeals From Supreme Court of New South Wales, Equity Division Decision Concerning Claims in Contract, Estoppel, Misleading Conduct Under the Fair Trading Act 1987, and Negligence / Court of Appeal Judgment
Outcome
State of New South Wales' appeal allowed; FI's appeal dismissed; judgment entered for the State on FI's contract, estoppel and Fair Trading Act claims; negligence claim remitted to Palmer J.
Legal Topics
["bovine Johne's Disease Eradication Policy" 'cattle Compensation Scheme' 'misleading or Deceptive Conduct' 'whether Crown Was Carrying on a Business' 'whether Conduct Was in Trade or Commerce' 'negligent Misstatement by Government Agency' 'pure Economic Loss' 'appellate Review of Factual Findings']
['contract Law' 'equitable Estoppel' 'fair Trading and Consumer Protection' 'negligence' 'administrative Action and Crown Liability'] ["bovine Johne's Disease Eradication Policy" 'cattle Compensation Scheme' 'misleading or Deceptive Conduct' 'whether Crown Was Carrying on a Business' 'whether Conduct Was in Trade or Commerce' 'negligent Misstatement by Government Agency' 'pure Economic Loss' 'appellate Review of Factual Findings']

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Procedural Posture

Appeals From Supreme Court of New South Wales, Equity Division Decision Concerning Claims in Contract, Estoppel, Misleading Conduct Under the Fair Trading Act 1987, and Negligence / Court of Appeal Judgment

Legal Issues

  1. 1 ["Whether the primary judge's finding preferring Dr Salmon's account of the 28 August 1992 conversation should be disturbed on appeal." 'Whether statements that approval of the depopulation proposal was highly likely gave rise to a contract between FI and the State of New South Wales.' 'Whether the State was estopped from denying the existence of a contract or from rejecting the depopulation proposal.' 'Whether NSWAg was carrying on a business, or acting in trade or commerce, when making representations concerning cattle depopulation and compensation so as to engage the Fair Trading Act 1987.' 'Whether the negligence claim was adequately determined at first instance and whether it should be remitted.' 'Whether damages assessed under the Fair Trading Act were excessive.']

Ratio Decidendi

The Court of Appeal held that the primary judge's finding that Dr Salmon said approval was highly likely, rather than that approval had been given, should not be disturbed. That finding defeated FI's contract claim and did not support an equitable estoppel. The Fair Trading Act claim also failed because the relevant representations were made in the administration of a governmental cattle disease eradication and compensation scheme, not in the course of carrying on a business or in trade or commerce. The negligence claim could not be finally resolved because the primary judge's findings were incomplete and the claim required reconsideration as to duty, breach, causation and damages.

Court Disposition

State of New South Wales' appeal allowed; FI's appeal dismissed; judgment entered for the State on FI's contract, estoppel and Fair Trading Act claims; negligence claim remitted to Palmer J.

Orders

  • ['The appeal of the State of New South Wales (CA40990/01) allowed and orders below set aside.' "FI to pay the State of New South Wales' costs of that appeal and to have a Suitors Fund certificate if otherwise entitled." 'Appeal of FI (CA41073/01) dismissed with costs.' "Verdict and judgment for the State of New...