Cedric Constructions Pty Ltd v Elders Finance & Investment Co. Lts & Anor [1988] FCA 314

Cedric Constructions Pty Ltd v Elders Finance & Investment Co. Lts & Anor [1988] FCA 314

The amended statement of claim does not disclose a cause of action under the Trade Practices Act 1974, as representations regarding future conduct or promises cannot be misleading or deceptive merely because they do not come to pass, unless made without belief or with reckless indifference at the time. The applicant's pleadings fail to allege such state of mind and relate instead to errors or miscalculations, which do not engage the Act. Therefore, the Court has no jurisdiction to entertain the claim.

Parties
Applicant: Cedric Constructions Pty Limited; First Respondent: Elder's Finance & Investment Co. Limited; Second Respondent: Elder's Lensworth Finance Limited
Jurisdiction
Australia
Judgment Date
17 June 1988
Procedural Posture
Application to Strike Out Statement of Claim / Ruling on Strike Out Motion
Outcome
Statement of claim struck out; costs to respondent; liberty to apply for further orders.
Legal Topics
Misleading or Deceptive Conduct, False or Misleading Statements, Future Promises, Representation, Jurisdiction, Federal Court Procedure
Trade Practices Misleading or Deceptive Conduct False or Misleading Statements Future Promises Representation Jurisdiction Federal Court Procedure

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Parties

Cedric Constructions Pty Limited

Applicant

Elder's Finance & Investment Co. Limited

First Respondent

Elder's Lensworth Finance Limited

Second Respondent

Procedural Posture

Application to Strike Out Statement of Claim / Ruling on Strike Out Motion

Legal Issues

  1. 1 Whether representations as to future promises or conduct can be misleading or deceptive under the Trade Practices Act 1974
  2. 2 Whether alleged damage relates to erroneous representation
  3. 3 Whether implied representation by law can be misleading or false

Ratio Decidendi

The amended statement of claim does not disclose a cause of action under the Trade Practices Act 1974, as representations regarding future conduct or promises cannot be misleading or deceptive merely because they do not come to pass, unless made without belief or with reckless indifference at the time. The applicant's pleadings fail to allege such state of mind and relate instead to errors or miscalculations, which do not engage the Act. Therefore, the Court has no jurisdiction to entertain the claim.

Court Disposition

Statement of claim struck out; costs to respondent; liberty to apply for further orders.

Orders

  • The amended Statement of Claim filed in these proceedings be struck out.
  • The applicant pay the costs of the first respondent.