Moss v Lowe Hunt & Partners Pty Ltd [2010] FCA 1181

Moss v Lowe Hunt & Partners Pty Ltd [2010] FCA 1181

The respondents, by making misleading representations regarding the financial position of Lowe Hunt and failing to disclose material financial weaknesses to Mr Moss, induced him to leave his own business and accept employment. This contravened ss 52, 53B TPA and ss 42, 46 FTA, causing Pegasus to lose a valuable commercial opportunity. Damages are payable for this lost opportunity, assessed as the difference between projected earnings from continued consultancy and actual earnings during employment, discounted appropriately for contingencies.

Jurisdiction
Australia
Judgment Date
01 November 2010
Procedural Posture
Civil / Judgment
Outcome
Judgment for the second applicant (Pegasus Strategic Planning Pty Ltd)
Legal Topics
['misleading or Deceptive Conduct' 'statutory Compensation' 'assessment of Damages' 'employment Representations']
['trade Practices' 'employment Law'] ['misleading or Deceptive Conduct' 'statutory Compensation' 'assessment of Damages' 'employment Representations']

Case Brief

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Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ['Whether representations made by employer to prospective employee were misleading or deceptive or liable to mislead or deceive under Trade Practices Act 1974 (Cth) and Fair Trading Act 1987 (NSW)' 'Whether failure to disclose financial state constituted misleading conduct' 'Whether damages for lost business opportunity are actionable under s 82 TPA/s 68 FTA' 'Assessment of damages based on hypothetical state if applicant had continued consultancy business']

Ratio Decidendi

The respondents, by making misleading representations regarding the financial position of Lowe Hunt and failing to disclose material financial weaknesses to Mr Moss, induced him to leave his own business and accept employment. This contravened ss 52, 53B TPA and ss 42, 46 FTA, causing Pegasus to lose a valuable commercial opportunity. Damages are payable for this lost opportunity, assessed as the difference between projected earnings from continued consultancy and actual earnings during employment, discounted appropriately for contingencies.

Court Disposition

Judgment for the second applicant (Pegasus Strategic Planning Pty Ltd)

Orders

  • ['Judgment in favour of the second applicant in the sum of $306,740.' 'Costs are reserved.']