Commissioner for Fair Trading v Rowland Thomas & Ors [2004] NSWSC 479

Commissioner for Fair Trading v Rowland Thomas & Ors [2004] NSWSC 479

The court is empowered under s 72 of the Fair Trading Act 1987 to order the establishment of a trust fund to compensate victims of unlawful conduct by CAC, having found joint participation and unconscionable conduct by the defendants. Quantum is determined to be $200,000 per remaining defendant plus $700,000 for the third defendant by consent. Surplus funds after compensation must be returned pro rata to defendants, not allocated to the financial counselling trust fund.

Jurisdiction
Australia
Judgment Date
03 June 2004
Procedural Posture
Civil / Final Judgment
Outcome
Orders made for establishment of trust fund, permanent injunctions against business activities, and costs; contributions of $200,000 from first, second, and fourth defendants to trust fund; surplus returned to defendants pro rata.
Legal Topics
['establishment of Trust Fund' 'permanent Injunction' 'compensation for Loss or Damage' 'finance Broking' 'misleading and Deceptive Conduct' 'unconscionable Conduct']
['consumer Protection' 'trusts' 'remedies'] ['establishment of Trust Fund' 'permanent Injunction' 'compensation for Loss or Damage' 'finance Broking' 'misleading and Deceptive Conduct' 'unconscionable Conduct']

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Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 ['Whether the court has power to order the construction of a trust for compensating clients under s 72 of the Fair Trading Act 1987' 'Quantum of contribution by each defendant to the compensatory trust fund' 'Legality and appropriateness of injunctive relief and restraints on business activities']

Ratio Decidendi

The court is empowered under s 72 of the Fair Trading Act 1987 to order the establishment of a trust fund to compensate victims of unlawful conduct by CAC, having found joint participation and unconscionable conduct by the defendants. Quantum is determined to be $200,000 per remaining defendant plus $700,000 for the third defendant by consent. Surplus funds after compensation must be returned pro rata to defendants, not allocated to the financial counselling trust fund.

Court Disposition

Orders made for establishment of trust fund, permanent injunctions against business activities, and costs; contributions of $200,000 from first, second, and fourth defendants to trust fund; surplus returned to defendants pro rata.

Orders

  • ['Permanent injunction restraining defendants from conducting finance broking or related activities.' 'Permanent injunction restraining defendants from using certain business names.' 'Order for each of first, second, and fourth defendants to pay $200,000 into trust fund for victims.' 'Order for third defendant to...