Trendax Pty Ltd v. Wheeler, I.W. & Ors [1988] FCA 123

Trendax Pty Ltd v. Wheeler, I.W. & Ors [1988] FCA 123

The first, second and third respondents, through false representations regarding turnover and other aspects of the business, engaged in misleading and deceptive conduct contrary to s.52 of the Trade Practices Act 1974, which induced the applicant's purchase and resulted in loss. The applicant is therefore entitled to damages and the deed of charge is to be avoided ab initio under s.87. The fourth and fifth respondents did not make misleading representations and are not liable.

Parties
Applicant: Trendax Pty Limited; First Respondent: Ian William Wheeler; Second Respondent: Newcastle Importers Australia Pty Limited; Third Respondent: Ian & Sons Wholesale Pty Limited; Fourth Respondent: Garth Griffiths; Fifth Respondent: Griffiths Shearman Real Estate Pty Limited trading as Wilsons Business Brokers; Second First Cross Respondent: John George Kerr; Third First Cross Respondent: Kim Reginald Sharpe
Jurisdiction
Australia
Judgment Date
29 March 1988
Procedural Posture
Civil / First Instance Judgment After Trial
Outcome
Applicant succeeded against first, second and third respondents. Application dismissed against fourth and fifth respondents. All cross-claims dismissed.
Legal Topics
Misleading or Deceptive Conduct, Sale of Business, Damages, Remedies Under Trade Practices Act 1974, Assessment of Damages
Trade Practices Misleading or Deceptive Conduct Sale of Business Damages Remedies Under Trade Practices Act 1974 Assessment of Damages

Case Brief

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Parties

Trendax Pty Limited

Applicant

Ian William Wheeler

First Respondent

Newcastle Importers Australia Pty Limited

Second Respondent

Ian & Sons Wholesale Pty Limited

Third Respondent

Garth Griffiths

Fourth Respondent

Griffiths Shearman Real Estate Pty Limited trading as Wilsons Business Brokers

Fifth Respondent

John George Kerr

Second First Cross Respondent

Kim Reginald Sharpe

Third First Cross Respondent

Procedural Posture

Civil / First Instance Judgment After Trial

Legal Issues

  1. 1 Whether the respondents engaged in misleading or deceptive conduct in relation to the sale of a business under s.52 of the Trade Practices Act 1974
  2. 2 Whether the representations as to turnover and customer lists induced the applicant to enter the transaction
  3. 3 Assessment of damages under s.82 of the Trade Practices Act 1974

Ratio Decidendi

The first, second and third respondents, through false representations regarding turnover and other aspects of the business, engaged in misleading and deceptive conduct contrary to s.52 of the Trade Practices Act 1974, which induced the applicant's purchase and resulted in loss. The applicant is therefore entitled to damages and the deed of charge is to be avoided ab initio under s.87. The fourth and fifth respondents did not make misleading representations and are not liable.

Court Disposition

Applicant succeeded against first, second and third respondents. Application dismissed against fourth and fifth respondents. All cross-claims dismissed.

Orders

  • Judgment for applicant against first, second and third respondents in sum of $43,269.
  • Deed of charge dated 5 June 1987 declared void ab initio.