Maisey, G.W. & Anor v. Mudgeeraba Village Estates Pty Ltd & Ors [1985] FCA 191

Maisey, G.W. & Anor v. Mudgeeraba Village Estates Pty Ltd & Ors [1985] FCA 191

Mudgeeraba Village Estates Pty. Limited (trading as Camelot Real Estate) is liable under section 52 and section 84(2) of the Trade Practices Act 1974 for misleading and deceptive conduct engaged in by its employee, Mr White, within the scope of his employment and 'on behalf of' the corporation, which induced the applicants to invest in the limited partnership and purchase units, thereby causing them loss. Mrs Perry was not found to be knowingly concerned in the contraventions, and thus not personally liable under section 75B. There was sufficient evidence that the applicants suffered loss. Mr White was not found to be in breach of contract, and the company's cross-claims for indemnity...

Parties
Applicant: GLENN WAYNE MAISEY; Applicant: JACQUELINE ANNETTE MAISEY; Applicant: ELIZABETH SMEDLEY; Applicant: NICK JAMES PTY. LIMITED; Third Respondent and First Cross Claimant: MUDGEERABA VILLAGE ESTATES PTY. LIMITED; Fourth Respondent and Second Cross Claimant: ZOLENE ELIZABETH PERRY; First Cross Respondent: FIRST COAST PTY. LIMITED; Second Cross Respondent: SURETY INVESTMENTS PTY. LIMITED; Third Cross Respondent: DAVID WHITE
Jurisdiction
Australia
Judgment Date
22 May 1985
Procedural Posture
Civil / Final Judgment After Trial, With Cross Claims and Applications for Default Judgment
Outcome
Applicants succeeded against Mudgeeraba Village Estates Pty. Limited. Claims against Mrs Perry dismissed. Cross-claims by Mudgeeraba and Mrs Perry against Mr White, First Coast, and Surety Investments dismissed. Damages with costs awarded to applicants.
Legal Topics
Misleading or Deceptive Conduct, False Representations, Limited Partnerships, Director and Employee Liability, Damages, Agency and Vicarious Liability, Default Judgment, Indemnity
Trade Practices Consumer Protection Torts Contract Misleading or Deceptive Conduct False Representations Limited Partnerships Director and Employee Liability +4 more

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Parties

GLENN WAYNE MAISEY

Applicant

JACQUELINE ANNETTE MAISEY

Applicant

ELIZABETH SMEDLEY

Applicant

NICK JAMES PTY. LIMITED

Applicant

MUDGEERABA VILLAGE ESTATES PTY. LIMITED

Third Respondent and First Cross Claimant

ZOLENE ELIZABETH PERRY

Fourth Respondent and Second Cross Claimant

FIRST COAST PTY. LIMITED

First Cross Respondent

SURETY INVESTMENTS PTY. LIMITED

Second Cross Respondent

DAVID WHITE

Third Cross Respondent

Procedural Posture

Civil / Final Judgment After Trial, With Cross Claims and Applications for Default Judgment

Legal Issues

  1. 1 Whether representations made by an employee of a corporation in relation to investment in a limited partnership and purchase of a unit in a high-rise development project were misleading or deceptive under section 52 of the Trade Practices Act 1974
  2. 2 Whether the corporation is liable for the conduct of its employee under section 84(2) of the Trade Practices Act 1974
  3. 3 Whether the director and manager of the corporation (Mrs Perry) was knowingly concerned in, or party to, the contraventions under section 75B of the Trade Practices Act 1974

Ratio Decidendi

Mudgeeraba Village Estates Pty. Limited (trading as Camelot Real Estate) is liable under section 52 and section 84(2) of the Trade Practices Act 1974 for misleading and deceptive conduct engaged in by its employee, Mr White, within the scope of his employment and 'on behalf of' the corporation, which induced the applicants to invest in the limited partnership and purchase units, thereby causing them loss. Mrs Perry was not found to be knowingly concerned in the contraventions, and thus not personally liable under section 75B. There was sufficient evidence that the applicants suffered loss. Mr White was not found to be in breach of contract, and the company's cross-claims for indemnity...

Court Disposition

Applicants succeeded against Mudgeeraba Village Estates Pty. Limited. Claims against Mrs Perry dismissed. Cross-claims by Mudgeeraba and Mrs Perry against Mr White, First Coast, and Surety Investments dismissed. Damages with costs awarded to applicants.

Orders

  • Judgment for Glenn Wayne Maisey and Jacqueline Annette Maisey against Mudgeeraba Village Estates Pty. Limited in the sum of $77,420, with costs including reserved costs.
  • Judgment for Elizabeth Smedley against Mudgeeraba Village Estates Pty. Limited in the sum of $77,420, with costs including reserved costs.