Ketillion Pty Ltd v Tabah Holdings Pty Ltd & Anor [1987] FCA 511

Ketillion Pty Ltd v Tabah Holdings Pty Ltd & Anor [1987] FCA 511

The respondents, through their agent, made untrue representations to the applicant concerning Council approval for a town house development and the need to extend the three abutting streets. These amounted to misleading or deceptive conduct under s.52 of the Trade Practices Act, for which both respondents are responsible. The applicant relied on these representations and was induced to enter the contract. The applicant was entitled to and did validly rescind the contract. The applicant established loss comprising the deposit, development expenses, and interest, recoverable under s.82 of the Trade Practices Act and s.51A of the Federal Court of Australia Act.

Parties
Applicant: Ketillion Pty. Ltd.; First Respondent: Tabah Holdings Pty. Ltd.; Second Respondent: Xaton Nominees Pty. Ltd. trading as Queensland Finance & Land
Jurisdiction
Australia
Judgment Date
18 September 1987
Procedural Posture
Application for Relief for Misleading or Deceptive Conduct (contract for Sale of Land) / Judgment Following Final Hearing
Outcome
Judgment for the applicant.
Legal Topics
Misleading or Deceptive Conduct, Sale of Land, Measure of Damages, Rescission of Contract, Interest
Trade Practices Contract Property Law Misleading or Deceptive Conduct Sale of Land Measure of Damages Rescission of Contract Interest

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Parties

Ketillion Pty. Ltd.

Applicant

Tabah Holdings Pty. Ltd.

First Respondent

Xaton Nominees Pty. Ltd. trading as Queensland Finance & Land

Second Respondent

Procedural Posture

Application for Relief for Misleading or Deceptive Conduct (contract for Sale of Land) / Judgment Following Final Hearing

Legal Issues

  1. 1 Whether the respondents made misleading or deceptive representations concerning the approval of a town house development by the local authority on the subject land;
  2. 2 Whether the applicant was entitled to rescind the contract for the sale of land;
  3. 3 Assessment of damages and entitlement to interest.

Ratio Decidendi

The respondents, through their agent, made untrue representations to the applicant concerning Council approval for a town house development and the need to extend the three abutting streets. These amounted to misleading or deceptive conduct under s.52 of the Trade Practices Act, for which both respondents are responsible. The applicant relied on these representations and was induced to enter the contract. The applicant was entitled to and did validly rescind the contract. The applicant established loss comprising the deposit, development expenses, and interest, recoverable under s.82 of the Trade Practices Act and s.51A of the Federal Court of Australia Act.

Court Disposition

Judgment for the applicant.

Orders

  • Declaration that the contract was rescinded upon receipt by the first respondent's solicitors of the applicant's solicitors' letter dated 8 December 1986.
  • Judgment for the applicant against both respondents in the sum of $27,012.