Dalton v Lawson Hill Estate Pty Ltd [2005] FCAFC 169

Dalton v Lawson Hill Estate Pty Ltd [2005] FCAFC 169

The Full Federal Court allowed the appeals; held that Mrs Grace was engaged in trade or commerce and liable as co-vendor for misleading or deceptive conduct together with Mr Grace. The agent and Mr O'Brien were not liable as their conduct amounted only to passing on information with appropriate disclaimers, not affirming its accuracy or holding out expertise, given all parties knew the source. Mr Dalton was not liable as his conduct in creating the mistaken invoice was not a representation to the purchaser nor in trade or commerce as regards the purchaser, and any loss resulted from the vendors' subsequent representations, breaking the chain of causation.

Parties
Appellant: John Michael Dalton; First Respondent: Lawson Hill Estate Pty Ltd as trustee of the Lawson Hill Estate Trust; Second Respondent: June Margaret Grace; Third Respondent: Jose John Harold Grace; First Appellant: Tovegold Pty Ltd as trustee for O'Brien McGregor Trust Fund; Second Appellant: Tim O'Brien; Second Appellant (nsd 197 of 2005): Paul Houlihan; Third Appellant (nsd 197 of 2005): Mary Houlihan; Fourth Appellant (nsd 197 of 2005): Lesley Evans; Fifth Appellant (nsd 197 of 2005): Peter Rochfort; Sixth Appellant (nsd 197 of 2005): Anthony Fleming; Seventh Appellant (nsd 197 of 2005): Margaret Fleming; Eighth Appellant (nsd 197 of 2005): Patrick Houlihan; Ninth Appellant (nsd 197 of 2005): Marie Houlihan; Tenth Appellant (nsd 197 of 2005): Noel Magee; Eleventh Appellant (nsd 197 of 2005): Anne Magee; Twelfth Appellant (nsd 197 of 2005): Rupert Newton; Thirteenth Appellant (nsd 197 of 2005): Barbara Newton; Fourteenth Appellant (nsd 197 of 2005): Clive Poolman; Fifteenth Appellant (nsd 197 of 2005): Cremorne Holding Pty Ltd
Jurisdiction
Australia
Judgment Date
22 August 2005
Procedural Posture
Appeal / Full Federal Court on Appeal From a Judge of the Federal Court of Australia
Outcome
Appeals allowed; judgments below set aside; judgment entered in favour of purchaser against Mr Grace and Mrs Grace; judgment for the agent, Mr O'Brien, and Mr Dalton; cross-claims dismissed except as specified; costs awarded as per orders.
Legal Topics
Misleading or Deceptive Conduct, Agency Liability, Sale of Land/business, Damages, Indemnity and Contribution
Trade Practices Contracts Property Law Partnership Law Misleading or Deceptive Conduct Agency Liability Sale of Land/business Damages +1 more

Case Brief

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Parties

John Michael Dalton

Appellant

Lawson Hill Estate Pty Ltd as trustee of the Lawson Hill Estate Trust

First Respondent

June Margaret Grace

Second Respondent

Jose John Harold Grace

Third Respondent

Tovegold Pty Ltd as trustee for O'Brien McGregor Trust Fund

First Appellant

Tim O'Brien

Second Appellant

Paul Houlihan

Second Appellant (nsd 197 of 2005)

Mary Houlihan

Third Appellant (nsd 197 of 2005)

Lesley Evans

Fourth Appellant (nsd 197 of 2005)

Peter Rochfort

Fifth Appellant (nsd 197 of 2005)

Anthony Fleming

Sixth Appellant (nsd 197 of 2005)

Margaret Fleming

Seventh Appellant (nsd 197 of 2005)

Patrick Houlihan

Eighth Appellant (nsd 197 of 2005)

Marie Houlihan

Ninth Appellant (nsd 197 of 2005)

Noel Magee

Tenth Appellant (nsd 197 of 2005)

Anne Magee

Eleventh Appellant (nsd 197 of 2005)

Rupert Newton

Twelfth Appellant (nsd 197 of 2005)

Barbara Newton

Thirteenth Appellant (nsd 197 of 2005)

Clive Poolman

Fourteenth Appellant (nsd 197 of 2005)

Cremorne Holding Pty Ltd

Fifteenth Appellant (nsd 197 of 2005)

Procedural Posture

Appeal / Full Federal Court on Appeal From a Judge of the Federal Court of Australia

Legal Issues

  1. 1 Whether misrepresentations about vine area and bore capacity were made and actionable under s 52 Trade Practices Act and s 42 Fair Trading Act;
  2. 2 Whether the agent (Tovegold Pty Ltd/Tim O'Brien) was liable to the purchaser for such misrepresentations;
  3. 3 Whether Mr Dalton, the bore driller, was liable;

Ratio Decidendi

The Full Federal Court allowed the appeals; held that Mrs Grace was engaged in trade or commerce and liable as co-vendor for misleading or deceptive conduct together with Mr Grace. The agent and Mr O'Brien were not liable as their conduct amounted only to passing on information with appropriate disclaimers, not affirming its accuracy or holding out expertise, given all parties knew the source. Mr Dalton was not liable as his conduct in creating the mistaken invoice was not a representation to the purchaser nor in trade or commerce as regards the purchaser, and any loss resulted from the vendors' subsequent representations, breaking the chain of causation.

Court Disposition

Appeals allowed; judgments below set aside; judgment entered in favour of purchaser against Mr Grace and Mrs Grace; judgment for the agent, Mr O'Brien, and Mr Dalton; cross-claims dismissed except as specified; costs awarded as per orders.

Orders

  • The appeals are allowed.
  • Orders made by the primary judge set aside.