Badger v John Kagelaris Pty Ltd [2019] NSWSC 1792

Badger v John Kagelaris Pty Ltd [2019] NSWSC 1792

Both Mr Sengos and Mr Kagelaris were primarily liable for making misleading representations as to sales figures and customer base, which caused Mr Badger to enter the Business Sale Agreement and suffer loss. The agreement was made void, and Mr Badger entitled to compensation and costs.

Parties
Plaintiff: Stephen Badger; First Defendant: John Kagelaris Pty Ltd; Second Defendant: John Kagelaris; Third Defendant: Paul Sengos
Jurisdiction
Australia
Judgment Date
13 December 2019
Procedural Posture
Principal Judgment / Final Orders After Hearing
Outcome
Business Sale Agreement declared void; compensation and costs awarded to plaintiff.
Legal Topics
Misleading or Deceptive Conduct, Pre Contractual Representations, Rescission, Accessorial Liability, Affirmation of Contract
Equity Consumer Law Contract Law Misleading or Deceptive Conduct Pre Contractual Representations Rescission Accessorial Liability Affirmation of Contract

Case Brief

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Parties

Stephen Badger

Plaintiff

John Kagelaris Pty Ltd

First Defendant

John Kagelaris

Second Defendant

Paul Sengos

Third Defendant

Procedural Posture

Principal Judgment / Final Orders After Hearing

Legal Issues

  1. 1 Did the defendants engage in misleading or deceptive conduct under s 18(1) of the Australian Consumer Law?
  2. 2 Were the representations relied upon and did they cause loss?
  3. 3 Is the plaintiff entitled to rescission and compensation?

Ratio Decidendi

Both Mr Sengos and Mr Kagelaris were primarily liable for making misleading representations as to sales figures and customer base, which caused Mr Badger to enter the Business Sale Agreement and suffer loss. The agreement was made void, and Mr Badger entitled to compensation and costs.

Court Disposition

Business Sale Agreement declared void; compensation and costs awarded to plaintiff.

Orders

  • Declare the whole of the Business Sale Agreement between the plaintiff and the first and second defendants dated 14 January 2017 to be void pursuant to Competition and Consumer Act 2010 (Cth), Sch 2, s 243.
  • Order the second and third defendants to pay to the plaintiff the sum of $114,991.48 pursuant to Competition and Consumer Act 2010 (Cth), Sch 2, s 237.