Bailey v Veda Advantage Information Services and Solutions Limited (No 2) [2008] FCA 730

Bailey v Veda Advantage Information Services and Solutions Limited (No 2) [2008] FCA 730

Section 65A of the Trade Practices Act 1974 (Cth) applies to the credit reports issued by Veda, a prescribed information provider; the exceptions do not apply on the facts pleaded, so s 52 does not govern the conduct. The applicants’ negligence case, as currently pleaded, fails to establish a reasonable cause of action because it asserts only foreseeability and a duty to the world at large, not the necessary proximity or circumstances for a duty of care for pure economic loss. Deficiencies in the pleading and repetition of unsuccessful amendments mean applicants should not have another opportunity to replead. Proceedings should be dismissed.

Jurisdiction
Australia
Judgment Date
22 May 2008
Procedural Posture
Class Action (representative Proceeding) / Application to Set Aside Dismissal Orders and for Leave to Enter Prior Orders; Reasons for Interlocutory Determination
Outcome
Applications dismissed. Leave granted to respondent to enter prior dismissal and costs orders. Respondent's costs to date included.
Legal Topics
['class Actions' 'section 52 Trade Practices Act' 'negligent System Liability' 'economic Loss' 'pleading Standards' 'credit Reporting']
['practice and Procedure' 'trade Practices' 'tort (negligence)'] ['class Actions' 'section 52 Trade Practices Act' 'negligent System Liability' 'economic Loss' 'pleading Standards' 'credit Reporting']

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Procedural Posture

Class Action (representative Proceeding) / Application to Set Aside Dismissal Orders and for Leave to Enter Prior Orders; Reasons for Interlocutory Determination

Legal Issues

  1. 1 ['Whether s 65A of the Trade Practices Act 1974 (Cth) bars claim for misleading conduct under s 52 in relation to credit reports issued by prescribed information provider;' 'Whether applicants have pleaded a reasonable cause of action in negligence, given duty of care owed to world at large and requirements for pure economic loss;' 'Whether class action pleading sufficiently sets out common questions and basis for representative proceedings.']

Ratio Decidendi

Section 65A of the Trade Practices Act 1974 (Cth) applies to the credit reports issued by Veda, a prescribed information provider; the exceptions do not apply on the facts pleaded, so s 52 does not govern the conduct. The applicants’ negligence case, as currently pleaded, fails to establish a reasonable cause of action because it asserts only foreseeability and a duty to the world at large, not the necessary proximity or circumstances for a duty of care for pure economic loss. Deficiencies in the pleading and repetition of unsuccessful amendments mean applicants should not have another opportunity to replead. Proceedings should be dismissed.

Court Disposition

Applications dismissed. Leave granted to respondent to enter prior dismissal and costs orders. Respondent's costs to date included.

Orders

  • ['The respondent have leave to enter orders 1 and 2 made on 20 February 2008.' "The respondent's costs of the proceeding referred to in order 2 made on 20 February 2008 include its costs incurred after that date (including costs on motions)." "The applicant's motion to set aside earlier orders is dismissed (in...