Ward, S. & S.P. v Premier Ice Skating Rink Pty Ltd & Ors [1986] FCA 83

Ward, S. & S.P. v Premier Ice Skating Rink Pty Ltd & Ors [1986] FCA 83

The advertisement prepared and authorised by Moser as agent for Premier Ice Skating Rink Pty Ltd was misleading, falsely representing business turnover and overheads. Ward reasonably relied on the advertisement in deciding to purchase. Moser was knowingly concerned in the misleading conduct and is liable for damages under s.82 of the Trade Practices Act 1974. Firmin did not have sufficient awareness to establish liability.

Parties
Applicant: Selwyn Ward; Applicant: Sharon Patricia Ward; First Respondent: Premier Ice Skating Rink Pty Ltd; Second Respondent: Lionel Finkelstein; Third Respondent: William Moser; Fourth Respondent: Desmond Firmin
Jurisdiction
Australia
Judgment Date
13 March 1986
Procedural Posture
Trade Practices Claim (misleading or Deceptive Conduct) / Judgment With Damages Declaration and Partial Adjournment
Outcome
Declaration of contravention and damages; claim for damages arising from lease obligations adjourned; costs reserved.
Legal Topics
Misleading or Deceptive Conduct, Business Sale, Damages, Agent Liability, Lease Obligations
Trade Practices Consumer Protection Contract Commercial Law Misleading or Deceptive Conduct Business Sale Damages Agent Liability +1 more

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Parties

Selwyn Ward

Applicant

Sharon Patricia Ward

Applicant

Premier Ice Skating Rink Pty Ltd

First Respondent

Lionel Finkelstein

Second Respondent

William Moser

Third Respondent

Desmond Firmin

Fourth Respondent

Procedural Posture

Trade Practices Claim (misleading or Deceptive Conduct) / Judgment With Damages Declaration and Partial Adjournment

Legal Issues

  1. 1 Whether advertisement for sale of ice-skating rink was misleading or deceptive under s.52 of Trade Practices Act 1974
  2. 2 Agent liability for misleading conduct
  3. 3 Damages for misrepresentation (capital loss, acquisition expenses, interest)

Ratio Decidendi

The advertisement prepared and authorised by Moser as agent for Premier Ice Skating Rink Pty Ltd was misleading, falsely representing business turnover and overheads. Ward reasonably relied on the advertisement in deciding to purchase. Moser was knowingly concerned in the misleading conduct and is liable for damages under s.82 of the Trade Practices Act 1974. Firmin did not have sufficient awareness to establish liability.

Court Disposition

Declaration of contravention and damages; claim for damages arising from lease obligations adjourned; costs reserved.

Orders

  • Declaration that third respondent (Moser) was directly concerned in first respondent's contravention of s.52 and is liable to pay applicants loss or damages sustained.
  • Declaration that liability against fourth respondent (Firmin) is not established.