Leda Holdings Pty Ltd v Oraka Pty Ltd & Anor [1997] FCA 1385

Leda Holdings Pty Ltd v Oraka Pty Ltd & Anor [1997] FCA 1385

The Full Court held that, in light of the experience and conduct of Mr Johnson, the surrounding contractual terms, and evidence, there was insufficient causal connection between the Landlord's conduct and any loss suffered. The exclusion clause (clause 9) in the lease, while not an absolute bar to liability, further weakened the claim of reliance; the evidence did not support a finding of loss caused by the Landlord's misleading conduct. The cross-claim was not finally resolved and was remitted for consideration.

Parties
Appellant: Leda Holdings Pty Limited; First Respondent: Oraka Pty Limited; Second Respondent: Bryan Clifford Johnson
Jurisdiction
Australia
Judgment Date
09 December 1997
Procedural Posture
Appeal / Judgment on Appeal
Outcome
Appeal allowed; application dismissed; cross-claim remitted for consideration.
Legal Topics
Misleading or Deceptive Conduct, Lease Agreements, Reliance on Representations, Exclusion Clauses
Trade Practices Contract Misleading or Deceptive Conduct Lease Agreements Reliance on Representations Exclusion Clauses

Case Brief

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Parties

Leda Holdings Pty Limited

Appellant

Oraka Pty Limited

First Respondent

Bryan Clifford Johnson

Second Respondent

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether representations by the landlord regarding occupancy levels of a new shopping centre, and subsequent failure to correct an impression, amounted to misleading and deceptive conduct under s 52 of the Trade Practices Act 1974 (Cth)
  2. 2 Whether the lessee and guarantor relied on alleged misrepresentations in entering into the lease agreement and guarantee
  3. 3 Effect of exclusion clauses—statements in the lease purporting to exclude liability for reliance on representations

Ratio Decidendi

The Full Court held that, in light of the experience and conduct of Mr Johnson, the surrounding contractual terms, and evidence, there was insufficient causal connection between the Landlord's conduct and any loss suffered. The exclusion clause (clause 9) in the lease, while not an absolute bar to liability, further weakened the claim of reliance; the evidence did not support a finding of loss caused by the Landlord's misleading conduct. The cross-claim was not finally resolved and was remitted for consideration.

Court Disposition

Appeal allowed; application dismissed; cross-claim remitted for consideration.

Orders

  • The appeal be allowed.
  • The orders below be set aside and, in lieu thereof, there be orders that the application be dismissed and that Oraka Pty Limited and Mr Johnson pay Leda Holdings Pty Ltd's costs of the application.