Bowler, Bruce William & Anor v Hilda Pty Ltd & Ors [1996] FCA 928

Bowler, Bruce William & Anor v Hilda Pty Ltd & Ors [1996] FCA 928

The applicants failed to establish liability because any misunderstanding created by the rental guarantee statements was dispelled by unequivocal legal advice and the applicants knowingly assumed the contractual risk before exchange; the false statement about Mr Singh's father was not shown to have materially induced or been relied upon in contracting; the unit use representation was a representation as to a future matter and the Leader companies had reasonable grounds for making it, including their communications with Hilda's solicitors and the contractual obligation on Hilda to notify marketing changes. Since no contravention by the Leader companies was established, derivative liability...

Jurisdiction
Australia
Judgment Date
25 October 1996
Procedural Posture
Representative Proceeding Under Part IVA of the Federal Court of Australia Act 1976 (cth) Alleging Contraventions of the Trade Practices Act 1974 (cth) Arising From Sale of a Unit in a Corporate Units Plan / Reasons for Judgment After Hearing; Proceedings Stood Over for Orders Including Costs
Outcome
Claims specific to the applicants rejected; proceedings stood over for the making of orders including costs and for submissions on the form of judgment in light of s33ZB of the Federal Court of Australia Act 1976.
Legal Topics
['oral Representations Made With Written Brochure' 'rental Guarantee Representation' 'unit Use Representation' "representation That Salesperson's Father Had Bought a Unit" 'reliance and Inducement' 'representations as to Future Matters' 'reasonable Grounds' 'amendment of Pleadings' 'accessorial Liability' 'agency Liability']
['trade Practices' 'misleading or Deceptive Conduct' 'practice and Procedure' 'representative Proceedings'] ['oral Representations Made With Written Brochure' 'rental Guarantee Representation' 'unit Use Representation' "representation That Salesperson's Father Had Bought a Unit" 'reliance and Inducement' 'representations as to Future Matters' 'reasonable Grounds' 'amendment of Pleadings' 'accessorial Liability' 'agency Liability']

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Procedural Posture

Representative Proceeding Under Part IVA of the Federal Court of Australia Act 1976 (cth) Alleging Contraventions of the Trade Practices Act 1974 (cth) Arising From Sale of a Unit in a Corporate Units Plan / Reasons for Judgment After Hearing; Proceedings Stood Over for Orders Including Costs

Legal Issues

  1. 1 ['Whether statements by a real estate agent and the Regency Apartments brochure conveyed a misleading rental guarantee representation and induced the applicants to contract.' "Whether the representation that Mr Singh's father had bought a unit was false, material and relied upon by the applicants." 'Whether the representation that serviced apartments could be lived in, rented out privately, or rented to a management company was misleading or deceptive or made without reasonable grounds.' 'Whether the applicants could rely on newspaper advertisements as contravening conduct despite the advertisements not being pleaded or particularised.' 'Whether liability could be established against Hilda under s84(2) of the Trade Practices Act 1974 (Cth) or against natural person respondents under s75B where the Leader companies were not found liable.']

Ratio Decidendi

The applicants failed to establish liability because any misunderstanding created by the rental guarantee statements was dispelled by unequivocal legal advice and the applicants knowingly assumed the contractual risk before exchange; the false statement about Mr Singh's father was not shown to have materially induced or been relied upon in contracting; the unit use representation was a representation as to a future matter and the Leader companies had reasonable grounds for making it, including their communications with Hilda's solicitors and the contractual obligation on Hilda to notify marketing changes. Since no contravention by the Leader companies was established, derivative liability...

Court Disposition

Claims specific to the applicants rejected; proceedings stood over for the making of orders including costs and for submissions on the form of judgment in light of s33ZB of the Federal Court of Australia Act 1976.

Orders

  • ['The proceedings be stood over to a date to be fixed for the purpose of the making of orders, including orders as to costs.' 'The parties provide to the Associate of Finn J, by 11 November 1996, an agreed minute of the orders to be made, including costs orders, or if agreement has not been reached, their respective...