Morton, M & Anor v Black, D.R. [1988] FCA 401

Morton, M & Anor v Black, D.R. [1988] FCA 401

The respondent knowingly made false and misleading representations, including as to carrying capacity, valuable timber, capacity to provide a comfortable income, availability of his tutoring and assistance, availability of local work, and completion of access to the rainforest, for the purpose of inducing the applicants to purchase the farm, and the applicants relied on them. The representations made by telephone attracted the extended operation of the Trade Practices Act 1974 under s.6(3), and the sale of the farm was conduct in trade or commerce because the property was a capital asset used in the respondent's farming business. The applicants therefore succeeded in deceit and under...

Jurisdiction
Australia
Judgment Date
28 July 1988
Procedural Posture
Federal Court Proceeding Alleging Misleading or Deceptive Conduct, Breach of S.53 A(1)(b) of the Trade Practices Act 1974 and Common Law Fraud Arising From Sale of Farm Land / Reasons for Judgment After Final Hearing
Outcome
Applicants entitled to succeed on the common law claim for deceit and under s.52 of the Trade Practices Act 1974; relief to be made under s.87 on short minutes.
Legal Topics
['misleading or Deceptive Conduct' 'conduct in Trade or Commerce' 'telephone Representations' 'sale of Farm' 'fraudulent Misrepresentation' 'relief Under S.87 of the Trade Practices Act 1974' 'measure of Damages for Deceit']
['trade Practices' 'consumer Protection' 'misrepresentation' 'deceit' 'real Property'] ['misleading or Deceptive Conduct' 'conduct in Trade or Commerce' 'telephone Representations' 'sale of Farm' 'fraudulent Misrepresentation' 'relief Under S.87 of the Trade Practices Act 1974' 'measure of Damages for Deceit']

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Procedural Posture

Federal Court Proceeding Alleging Misleading or Deceptive Conduct, Breach of S.53 A(1)(b) of the Trade Practices Act 1974 and Common Law Fraud Arising From Sale of Farm Land / Reasons for Judgment After Final Hearing

Legal Issues

  1. 1 ['Whether the respondent made the alleged representations about the farm property by telephone and in person.' 'Whether the representations were false, misleading or deceptive, and made to induce the applicants to purchase the property.' 'Whether the applicants relied on the representations in entering the transaction.' "Whether the respondent's conduct involved use of telephonic services so as to attract the extended operation of the Trade Practices Act 1974 under s.6(3)." "Whether the respondent's sale of the farm property was conduct in trade or commerce for the purposes of ss.52 and 53A of the Trade Practices Act 1974." 'What relief should be granted for the established deceit and contravention of s.52.']

Ratio Decidendi

The respondent knowingly made false and misleading representations, including as to carrying capacity, valuable timber, capacity to provide a comfortable income, availability of his tutoring and assistance, availability of local work, and completion of access to the rainforest, for the purpose of inducing the applicants to purchase the farm, and the applicants relied on them. The representations made by telephone attracted the extended operation of the Trade Practices Act 1974 under s.6(3), and the sale of the farm was conduct in trade or commerce because the property was a capital asset used in the respondent's farming business. The applicants therefore succeeded in deceit and under...

Court Disposition

Applicants entitled to succeed on the common law claim for deceit and under s.52 of the Trade Practices Act 1974; relief to be made under s.87 on short minutes.

Orders

  • ['The Court indicated it would declare void ab initio the contract and the mortgage to the extent that they require payment of $75,000 and any interest thereon.' 'No further order of compensation should be made.' 'Appropriate short minutes were to be brought in.']