All Options Pty Ltd v Flightdeck Geelong Pty Ltd [2019] FCA 588

All Options Pty Ltd v Flightdeck Geelong Pty Ltd [2019] FCA 588

Flightdeck Geelong Pty Ltd and Darren Mathews contravened s 18 of the ACL by making false and misleading representations regarding past and future sales and profitability figures to All Options Pty Ltd, inducing its acquisition of the business, resulting in loss and damages recoverable under s 236 of the ACL. Flightdeck and Mathews are jointly and severally liable for the applicant's loss, assessed as the difference between purchase price and true value of the business as at sale, plus trading losses.

Parties
Applicant: All Options Pty Ltd; First Respondent: Flightdeck Geelong Pty Ltd; Second Respondent: Darren Mathews
Jurisdiction
Australia
Judgment Date
30 April 2019
Procedural Posture
Application for Damages Due to Misleading or Deceptive Conduct / Judgment After Trial
Outcome
Applicant succeeded on liability; orders for the parties to submit proposed final orders or brief submissions; damages and costs indicated for applicant.
Legal Topics
Misleading or Deceptive Conduct, Australian Consumer Law S 18, Damages Assessment, Company Representation in Court
Consumer Law Practice and Procedure Damages Misleading or Deceptive Conduct Australian Consumer Law S 18 Damages Assessment Company Representation in Court

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Parties

All Options Pty Ltd

Applicant

Flightdeck Geelong Pty Ltd

First Respondent

Darren Mathews

Second Respondent

Procedural Posture

Application for Damages Due to Misleading or Deceptive Conduct / Judgment After Trial

Legal Issues

  1. 1 Whether representations about past and future sales figures and profitability were misleading or deceptive in contravention of s 18 of the ACL
  2. 2 Whether damages should be awarded for loss and trading losses suffered by the applicant
  3. 3 Whether the sole director could represent a company respondent without a legal practitioner

Ratio Decidendi

Flightdeck Geelong Pty Ltd and Darren Mathews contravened s 18 of the ACL by making false and misleading representations regarding past and future sales and profitability figures to All Options Pty Ltd, inducing its acquisition of the business, resulting in loss and damages recoverable under s 236 of the ACL. Flightdeck and Mathews are jointly and severally liable for the applicant's loss, assessed as the difference between purchase price and true value of the business as at sale, plus trading losses.

Court Disposition

Applicant succeeded on liability; orders for the parties to submit proposed final orders or brief submissions; damages and costs indicated for applicant.

Orders

  • The parties are to file within 14 days consent orders giving effect to the reasons of this judgment, or if the parties cannot so agree, submissions limited to 5 pages setting out what each party contends should be the form of final relief.