Wang v Zong [2021] NSWDC 181

Wang v Zong [2021] NSWDC 181

Mr Zong made representations in trade or commerce about the yacht hire business, including that it would continue to be easy to rent yachts to Chinese tourists, that he knew how to and would promote the business, that he would operate it in compliance with relevant laws and regulations, and that it would be a good business. Those future representations were unsupported by reasonable grounds and were misleading under s 4 of the Australian Consumer Law (Cth). Mr Wang relied on the misleading conduct in paying $315,000 to AYC and suffered loss. The Return Representation and Sponsorship Representation were not proved, and the alternative loan and investment agreement claims failed for lack of...

Jurisdiction
Australia
Judgment Date
19 May 2021
Procedural Posture
Civil Proceeding Concerning Misleading or Deceptive Conduct, Contract and Damages / Principal Judgment After Hearing
Outcome
Judgment for the plaintiff against the first defendant for $233,185.27; judgment for the second defendant against the plaintiff; first defendant to pay the plaintiff's costs; second defendant to pay its own costs.
Legal Topics
['misleading or Deceptive Conduct' 'conduct in Trade or Commerce' 'representations as to Future Matters' 'reliance and Causation' 'assessment of Damages' 'loan Agreement' 'investment Agreement']
['consumer Law' 'contract Law' 'damages'] ['misleading or Deceptive Conduct' 'conduct in Trade or Commerce' 'representations as to Future Matters' 'reliance and Causation' 'assessment of Damages' 'loan Agreement' 'investment Agreement']

Case Brief

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Procedural Posture

Civil Proceeding Concerning Misleading or Deceptive Conduct, Contract and Damages / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether Mr Zong's representations were made in trade or commerce within the meaning of s 18 of the Australian Consumer Law (Cth)." 'Which pleaded representations were made and whether they were misleading or deceptive, including by operation of s 4 of the Australian Consumer Law (Cth).' 'Whether Mr Wang relied on misleading conduct and suffered loss or damage because of it under s 236 of the Australian Consumer Law (Cth).' 'How damages should be assessed for the misleading conduct.' 'Whether the payments were made under a loan agreement repayable with interest.' 'Whether there was a breached investment agreement entitling Mr Wang to relief.']

Ratio Decidendi

Mr Zong made representations in trade or commerce about the yacht hire business, including that it would continue to be easy to rent yachts to Chinese tourists, that he knew how to and would promote the business, that he would operate it in compliance with relevant laws and regulations, and that it would be a good business. Those future representations were unsupported by reasonable grounds and were misleading under s 4 of the Australian Consumer Law (Cth). Mr Wang relied on the misleading conduct in paying $315,000 to AYC and suffered loss. The Return Representation and Sponsorship Representation were not proved, and the alternative loan and investment agreement claims failed for lack of...

Court Disposition

Judgment for the plaintiff against the first defendant for $233,185.27; judgment for the second defendant against the plaintiff; first defendant to pay the plaintiff's costs; second defendant to pay its own costs.

Orders

  • ['Judgment for the plaintiff against the first defendant for $233,185.27.' 'Order the first defendant to pay the costs of the plaintiff.' 'Judgment for the second defendant against the plaintiff.' 'Order the second defendant to pay its own costs.']