Falom Pty Ltd v Elder Smith Goldsborough Mort Ltd & Ors [1987] FCA 635

Falom Pty Ltd v Elder Smith Goldsborough Mort Ltd & Ors [1987] FCA 635

Falom failed to establish it was induced to purchase by misrepresentations concerning salt land or water quality, as preliminary descriptions were overtaken by inspections, advice, and price negotiation; statements made regarding water supply and soil types were not actionable misrepresentations or misleading conduct under the Trade Practices Act, and no cause of action in negligence or fraud was established.

Parties
Applicant: Falom Pty Ltd; First Respondent: Elder Smith Goldsborough Mort Limited; Second Respondent: Geoffrey Robert Mickel; Second Respondent: Albert Stanley Mickel; Second Respondent: Mirriam Josephine Mickel; Second Respondent: Kingsley Albert Mickel; Cross Claimant: Elder Smith Goldsborough Mort Limited; Cross Respondent: Geoffrey Robert Mickel; Cross Respondent: Albert Stanley Mickel; Cross Respondent: Mirriam Josephine Mickel; Cross Respondent: Kingsley Albert Mickel
Jurisdiction
Australia
Judgment Date
06 November 1987
Procedural Posture
Claim for Damages / Final Judgment
Outcome
Application dismissed. Cross-claims dismissed.
Legal Topics
Misrepresentation, Inducement, Statutory Duties, Negligence, Fraud, Valuation, Remedies
Contract Law Australian Consumer Law Trade Practices Misrepresentation Inducement Statutory Duties Negligence Fraud +2 more

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Parties

Falom Pty Ltd

Applicant

Elder Smith Goldsborough Mort Limited

First Respondent

Geoffrey Robert Mickel

Second Respondent

Albert Stanley Mickel

Second Respondent

Mirriam Josephine Mickel

Second Respondent

Kingsley Albert Mickel

Second Respondent

Elder Smith Goldsborough Mort Limited

Cross Claimant

Geoffrey Robert Mickel

Cross Respondent

Albert Stanley Mickel

Cross Respondent

Mirriam Josephine Mickel

Cross Respondent

Kingsley Albert Mickel

Cross Respondent

Procedural Posture

Claim for Damages / Final Judgment

Legal Issues

  1. 1 Whether respondents made actionable misrepresentations regarding land salinity or water quality
  2. 2 Whether Falom was induced to enter the sale contract by misrepresentations
  3. 3 Adequacy of water supply for stocking sheep

Ratio Decidendi

Falom failed to establish it was induced to purchase by misrepresentations concerning salt land or water quality, as preliminary descriptions were overtaken by inspections, advice, and price negotiation; statements made regarding water supply and soil types were not actionable misrepresentations or misleading conduct under the Trade Practices Act, and no cause of action in negligence or fraud was established.

Court Disposition

Application dismissed. Cross-claims dismissed.

Orders

  • Applicant to pay the respondents' costs.
  • No order as to the costs of the cross-claims.