Instant Colour Pty Ltd & Ors v Canon Australia Pty Ltd & Anor [1997] FCA 203

Instant Colour Pty Ltd & Ors v Canon Australia Pty Ltd & Anor [1997] FCA 203

The Court held that although the trial judge found fraudulent or misleading conduct in breach of s 52 of the Trade Practices Act 1974 and reliance by appellants, exemplary damages were not appropriate absent contumelious conduct, but compensatory damages were justified based on the loss caused by more frequent machine breakdowns than represented. The total loss to the first appellant was assessed impressionistically at $200,000.

Parties
First Appellant: Instant Colour Pty Ltd (ACN 009 300 501); Second Appellant: Brian Ivey; Third Appellant: Matthew Ferguson; Fourth Appellant: Neville Charles Quatermaine; Fifth Appellant: Edwin Bennett Ivey; First Respondent: Canon Australia Pty Ltd (ACN 005 002 951); Second Respondent: Canon Finance Australia Ltd (ACN 003 637 116)
Jurisdiction
Australia
Judgment Date
20 March 1997
Procedural Posture
Appeal / Judgment on Appeal
Outcome
Appeal allowed in part
Legal Topics
Misrepresentation, Damages, Exemplary Damages, Compensatory Damages, Section 52 Trade Practices Act 1974
Trade Practices Misrepresentation Damages Exemplary Damages Compensatory Damages Section 52 Trade Practices Act 1974

Case Brief

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Parties

Instant Colour Pty Ltd (ACN 009 300 501)

First Appellant

Brian Ivey

Second Appellant

Matthew Ferguson

Third Appellant

Neville Charles Quatermaine

Fourth Appellant

Edwin Bennett Ivey

Fifth Appellant

Canon Australia Pty Ltd (ACN 005 002 951)

First Respondent

Canon Finance Australia Ltd (ACN 003 637 116)

Second Respondent

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether exemplary damages should have been awarded for fraudulent or misleading representations
  2. 2 Whether compensatory damages could be quantified and should be awarded for losses resulting from breach of representations under s 52 Trade Practices Act 1974

Ratio Decidendi

The Court held that although the trial judge found fraudulent or misleading conduct in breach of s 52 of the Trade Practices Act 1974 and reliance by appellants, exemplary damages were not appropriate absent contumelious conduct, but compensatory damages were justified based on the loss caused by more frequent machine breakdowns than represented. The total loss to the first appellant was assessed impressionistically at $200,000.

Court Disposition

Appeal allowed in part

Orders

  • Set aside orders made by the trial judge
  • Judgment entered for first appellant, Instant Colour Pty Limited, against the respondents for $200,000