Sullivan, S.S. & Anor v Copas Newnham Pty Ltd & Ors [1986] FCA 371

Sullivan, S.S. & Anor v Copas Newnham Pty Ltd & Ors [1986] FCA 371

The first respondent, as agent, made misleading representations regarding the lease terms (rent review basis and outgoings) during pre-contractual negotiations, which induced the applicants to enter and expend money. Although no contract was concluded, such representations about intentions can constitute contraventions of s.52 of the Trade Practices Act. Accordingly, the agent was liable to compensate the applicants for their loss, but the owners were not shown to be knowingly involved. The applicants are awarded $5,000 against the first respondent, with all other claims dismissed.

Parties
First Applicant: Shane Stephen Sullivan; Second Applicant: Penelope Jane Sullivan; First Respondent: Copas Newnham Pty. Ltd.; Second Respondent: John Anderson; Third Respondent: Hilda Maude Anderson; Cross Claimants: John Anderson and Hilda Maude Anderson; Cross Respondent: Shane Stephen Sullivan; Cross Claimants: Copas Newnham Pty. Ltd.; Cross Respondents: John Anderson and Hilda Maude Anderson
Jurisdiction
Australia
Judgment Date
09 January 1986
Procedural Posture
Trade Practices/contract Dispute Application Under S.52 Trade Practices Act / Judgment After Trial
Outcome
Applicants succeed against the first respondent only. All other claims (including cross-claims) dismissed. Judgment for the applicants for $5,000 against first respondent. Costs awarded to applicants and second/third respondents against first respondent.
Legal Topics
Section 52 Misleading and Deceptive Conduct, Negotiations for Lease, Misrepresentation as to Intention/state of Mind, Damages/compensation Under S.87, Agent's Liability
Trade Practices Contract Section 52 Misleading and Deceptive Conduct Negotiations for Lease Misrepresentation as to Intention/state of Mind Damages/compensation Under S.87 Agent's Liability

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Parties

Shane Stephen Sullivan

First Applicant

Penelope Jane Sullivan

Second Applicant

Copas Newnham Pty. Ltd.

First Respondent

John Anderson

Second Respondent

Hilda Maude Anderson

Third Respondent

John Anderson and Hilda Maude Anderson

Cross Claimants

Shane Stephen Sullivan

Cross Respondent

Copas Newnham Pty. Ltd.

Cross Claimants

John Anderson and Hilda Maude Anderson

Cross Respondents

Procedural Posture

Trade Practices/contract Dispute Application Under S.52 Trade Practices Act / Judgment After Trial

Legal Issues

  1. 1 Whether statements made in negotiations regarding lease terms were misleading and deceptive conduct under s.52 of the Trade Practices Act
  2. 2 Whether misrepresentation as to owner's intentions or state of mind is actionable under s.52
  3. 3 Whether damages are available to compensate for loss under s.87

Ratio Decidendi

The first respondent, as agent, made misleading representations regarding the lease terms (rent review basis and outgoings) during pre-contractual negotiations, which induced the applicants to enter and expend money. Although no contract was concluded, such representations about intentions can constitute contraventions of s.52 of the Trade Practices Act. Accordingly, the agent was liable to compensate the applicants for their loss, but the owners were not shown to be knowingly involved. The applicants are awarded $5,000 against the first respondent, with all other claims dismissed.

Court Disposition

Applicants succeed against the first respondent only. All other claims (including cross-claims) dismissed. Judgment for the applicants for $5,000 against first respondent. Costs awarded to applicants and second/third respondents against first respondent.

Orders

  • The first respondent pay the applicants the sum of $5,000.
  • The applicants' claim against the second and third respondents be dismissed.