Burke v LFOT Pty Limited [2002] HCA 17

Burke v LFOT Pty Limited [2002] HCA 17

Equitable contribution does not apply between LFOT/Tressider and Burke in respect of Hanave’s loss because their liabilities arose from distinct obligations—the statutory prohibition on misleading conduct and the solicitor’s duty of care. Burke was himself misled by LFOT’s conduct, and any payment by LFOT was an account of its gain, not a discharge of a common obligation. It would be contrary to principle to require Burke to contribute to LFOT, especially where LFOT obtained the gain through contravention. The appeal is allowed; the cross-claim for contribution is dismissed.

Parties
Appellant: William Robert Burke; Appellant: Hanave Pty Limited; Respondent: LFOT Pty Limited; Respondent: Paul Tressider; Respondent: Glew
Jurisdiction
Australia
Judgment Date
18 April 2002
Procedural Posture
Appeal / Decision on Appeal From Full Court of the Federal Court
Outcome
Appeal allowed
Legal Topics
Equitable Contribution, Negligence, Misleading and Deceptive Conduct, Liability Apportionment
Equity Trade Practices Contract Law Tort Law Equitable Contribution Negligence Misleading and Deceptive Conduct Liability Apportionment

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Parties

William Robert Burke

Appellant

Hanave Pty Limited

Appellant

LFOT Pty Limited

Respondent

Paul Tressider

Respondent

Glew

Respondent

Procedural Posture

Appeal / Decision on Appeal From Full Court of the Federal Court

Legal Issues

  1. 1 Whether a solicitor who gave negligent advice is liable to contribute to the loss suffered by his client as a consequence of another's misrepresentation under the Trade Practices Act 1974 (Cth)
  2. 2 Whether equitable contribution applies between contraveners of s 52 of the Trade Practices Act 1974 (Cth) and negligent advisers
  3. 3 Scope and requirements of co-ordinate liability under equitable contribution

Ratio Decidendi

Equitable contribution does not apply between LFOT/Tressider and Burke in respect of Hanave’s loss because their liabilities arose from distinct obligations—the statutory prohibition on misleading conduct and the solicitor’s duty of care. Burke was himself misled by LFOT’s conduct, and any payment by LFOT was an account of its gain, not a discharge of a common obligation. It would be contrary to principle to require Burke to contribute to LFOT, especially where LFOT obtained the gain through contravention. The appeal is allowed; the cross-claim for contribution is dismissed.

Court Disposition

Appeal allowed

Orders

  • Appeal allowed with costs.
  • Order of the Full Court of the Federal Court made on 18 August 2000 set aside.