Radferry Pty Ltd & Anor v Starborne Holdings Pty Ltd & Ors [1998] FCA 1689

Radferry Pty Ltd & Anor v Starborne Holdings Pty Ltd & Ors [1998] FCA 1689

The correct measure of damages for deceit and under the Trade Practices Act is the difference between the price paid for the business and its real value at the date of acquisition (as reflected by later trading history), and for breach of contract, the difference between the value of the business as warranted and its actual value. Additional claims for lost opportunities or further profits are not recoverable where such losses are already reflected in the primary calculation.

Jurisdiction
Australia
Judgment Date
18 December 1998
Procedural Posture
Appeal and Cross Appeal / On Appeal From a Judge of the Federal Court of Australia
Outcome
Appeal allowed. Cross-appeal allowed.
Legal Topics
['damages' 'deceit' 'breach of Contract' 'misleading and Deceptive Conduct' 'quantification of Damages']
['contracts' 'torts' 'trade Practices'] ['damages' 'deceit' 'breach of Contract' 'misleading and Deceptive Conduct' 'quantification of Damages']

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Procedural Posture

Appeal and Cross Appeal / On Appeal From a Judge of the Federal Court of Australia

Legal Issues

  1. 1 ['What is the correct measure of damages for deceit, breach of contract, and misleading and deceptive conduct under ss 82 and 87 of the Trade Practices Act 1974 (Cth)?' 'How should the loss suffered by the purchaser be quantified in light of misleading representations and the business’ actual performance?' 'Are additional losses or opportunity losses recoverable beyond the primary measure of damages?']

Ratio Decidendi

The correct measure of damages for deceit and under the Trade Practices Act is the difference between the price paid for the business and its real value at the date of acquisition (as reflected by later trading history), and for breach of contract, the difference between the value of the business as warranted and its actual value. Additional claims for lost opportunities or further profits are not recoverable where such losses are already reflected in the primary calculation.

Court Disposition

Appeal allowed. Cross-appeal allowed.

Orders

  • ['The appeal is allowed.' 'The cross-appeal is allowed.' 'Paragraphs 1, 2 and 3 of the orders below are set aside and substituted as follows: (i) The respondents are to pay the applicant the sum of $90,000 and interest thereon to 27 April 1998 in the amount of $5653; (ii) The first respondent is to pay to the...