Enterprise Finance Solutions Pty Limited v Austec Pty Limited [2013] FCA 491

Enterprise Finance Solutions Pty Limited v Austec Pty Limited [2013] FCA 491

The finance companies were 'linked credit providers,' and s 51AF did not exclude s 73 liability when supplier misrepresentations about equipment price or arrangement were made; liability for loss is joint and several, parties entitled to set-off. Applicant's and EFS/Quikfund's claims fail except to the extent of any amount exceeding set-off. Guarantees found unjust under Contracts Review Act, declared void ab initio.

Jurisdiction
Australia
Judgment Date
24 May 2013
Procedural Posture
Civil (multiple Proceedings: Contract, Misrepresentation, Guarantee Enforcement, Cross Claim) / Trial Judgment Post Hearing, Cross Claims, Stand Over for Final Orders
Outcome
Cross-claimants to file short minutes of orders and declarations; proceedings stood over for orders, including on costs. Applicant claims dismissed subject to set-off; guarantees declared void from inception.
Legal Topics
['misrepresentation' 'misleading or Deceptive Conduct' 'linked Credit Providers' 'guarantees and Indemnities' 'set Off' 'unjust Contracts' 'contracts Review Act Relief']
['trade Practices' 'consumer Law' 'agency' 'contract Law' 'credit and Finance'] ['misrepresentation' 'misleading or Deceptive Conduct' 'linked Credit Providers' 'guarantees and Indemnities' 'set Off' 'unjust Contracts' 'contracts Review Act Relief']

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Procedural Posture

Civil (multiple Proceedings: Contract, Misrepresentation, Guarantee Enforcement, Cross Claim) / Trial Judgment Post Hearing, Cross Claims, Stand Over for Final Orders

Legal Issues

  1. 1 ["Whether finance companies were 'linked credit providers' for purposes of s 73 Trade Practices Act 1974 (Cth);" 'Whether s 51AF excludes s 73 from operating where misrepresentation relates to financial services;' 'Whether misrepresentations by equipment suppliers bind finance companies;' 'Whether contracts of guarantee and indemnity are unjust under the Contracts Review Act 1980 (NSW);' 'Calculation of set-off under s 73 where equipment value less than amounts claimed.']

Ratio Decidendi

The finance companies were 'linked credit providers,' and s 51AF did not exclude s 73 liability when supplier misrepresentations about equipment price or arrangement were made; liability for loss is joint and several, parties entitled to set-off. Applicant's and EFS/Quikfund's claims fail except to the extent of any amount exceeding set-off. Guarantees found unjust under Contracts Review Act, declared void ab initio.

Court Disposition

Cross-claimants to file short minutes of orders and declarations; proceedings stood over for orders, including on costs. Applicant claims dismissed subject to set-off; guarantees declared void from inception.

Orders

  • ['Cross-claimants to file and serve short minutes of proposed declarations and orders within 7 days.' 'Proceedings stood over to a date to be fixed for declarations and orders (including costs).' 'Guarantees and indemnities declared void with effect from when made.' 'Orders to be finalized (including set-off and...