Upintheair Pty Ltd v Business Custodians Ltd [2016] NSWCA 287

Upintheair Pty Ltd v Business Custodians Ltd [2016] NSWCA 287

The appeal was dismissed because the court held that it was not necessary for the purchaser to show the fictitious invoices themselves were in the P&L, only the amounts; the Olympicon and Baringa Hospital invoices should not have been included in income; reliance by the purchaser was established; and interest on the $100,000 loan was payable at the contractual rate for the first 90 days, thereafter only at court rates unless expressly provided in the contract.

Parties
First Appellant: Upintheair Pty Ltd; Second Appellant: Jamie McKinnon; First Respondent: Business Custodians Limited; Second Respondent: Pepperprint Pty Limited; Third Respondent: Bruce Dwyer
Jurisdiction
Australia
Judgment Date
19 October 2016
Procedural Posture
Appeal / Decision on Appeal
Outcome
Appeal dismissed with costs except as to interest accrual on the $100,000 loan, where orders are to be brought to reflect the conclusion on interest.
Legal Topics
Breach of Contract, Misleading and Deceptive Conduct, Contractual Warranties, Interpretation of Contract, Implied Terms, Reliance, Assessment of Damages, Practice and Procedure
Contracts Consumer Law Civil Procedure Breach of Contract Misleading and Deceptive Conduct Contractual Warranties Interpretation of Contract Implied Terms +3 more

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Parties

Upintheair Pty Ltd

First Appellant

Jamie McKinnon

Second Appellant

Business Custodians Limited

First Respondent

Pepperprint Pty Limited

Second Respondent

Bruce Dwyer

Third Respondent

Procedural Posture

Appeal / Decision on Appeal

Legal Issues

  1. 1 Whether the purchaser was required to prove the fictitious invoices themselves (not just their amounts) were included in the P&L
  2. 2 Whether Olympicon invoices represented printing sales of the business
  3. 3 Whether the Baringa Hospital invoice was false

Ratio Decidendi

The appeal was dismissed because the court held that it was not necessary for the purchaser to show the fictitious invoices themselves were in the P&L, only the amounts; the Olympicon and Baringa Hospital invoices should not have been included in income; reliance by the purchaser was established; and interest on the $100,000 loan was payable at the contractual rate for the first 90 days, thereafter only at court rates unless expressly provided in the contract.

Court Disposition

Appeal dismissed with costs except as to interest accrual on the $100,000 loan, where orders are to be brought to reflect the conclusion on interest.

Orders

  • Set aside the order of the primary judge concerning the interest accruing on the $100,000 loan and direct the parties to bring in short minutes to reflect that conclusion.
  • Otherwise dismiss the appeal with costs.