Australian Securities and Investments Commission v Fortescue Metals Group Ltd [2011] FCAFC 19

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Fortescue Metals Group Ltd [2011] FCAFC 19 Citation: Australian Securities and Investments Commission v Fortescue Metals Group Ltd [2011] FCAFC 19

Appeal from: Australian Securities and Investment Commission v Fortescue Metals Group Ltd [No 5] [2009] FCA 1586

Parties: AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION v FORTESCUE METALS GROUP LTD (ACN 002 594 872) and JOHN ANDREW HENRY FORREST

File number: WAD 23 of 2010

Judges: KEANE CJ, EMMETT AND FINKELSTEIN JJ

Date of judgment: 18 February 2011

Catchwords: CORPORATIONS LAW – continuous disclosure – misleading and deceptive conduct – listed company made announcements that it had entered binding agreements – agreements were merely agreements to negotiate – whether continuous disclosure obligations had been breached – whether obligation not to engage in misleading or deceptive conduct had been breached

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) s 19 Corporations Act 2001 (Cth) ss 79, 180, 674, 676, 677, 1041H, 1332 Corporations Regulations 2001 (Cth) r 1.0.02A

Cases cited: Aaron's Reefs, Limited v Twiss [1896] AC 273 cited Australian Communist Party v The Commonwealth (1951) 83 CLR 1 cited Ansett Transport Industries (Operations) Pty Limited v The Commonwealth of Australia (1977) 139 CLR 54 cited Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 cited Australian Goldfields NL (in liq) v North Australian Diamonds NL [2009] WASCA 98 cited Barrier Wharfs Limited v W Scott Fell & Company Limited (1908) 5 CLR 647 Booker Industries Proprietary Limited v Wilson Parking (Queensland) Proprietary Limited (1982) 149 CLR 600 cited Briginshaw v Briginshaw (1938) 60 CLR 336 cited Campomar Sociedad Limitada v Nike International Limited (2000) 202 CLR 45 cited Coal Cliff Collieries Pty Ltd v Sijehama Pty Ltd (1991) 24 NSWLR 1 cited Council of the Upper Hunter Valley County District v Australian Chilling and Freezing Co Limited (1968) 118 CLR 429 cited Fletcher Challenge Energy Ltd v Electricity Corporation of New Zealand Ltd [2002] 2 NZLR 433 cited Franklins Pty Ltd v Metcash Trading Ltd (2009) 264 ALR 15 cited Global Sportsman Pty Ltd v Mirror Newspapers Pty Ltd (1984) 2 FCR 82 cited Godecke v Kirwan 120 CLR 629 cited Gould v Vaggelas (1985) 157 CLR 215 cited GR Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 cited Hall v Busst (1960) 104 CLR 206 cited Hillas & Co Ltd v Arcos Ltd [1932] All ER 494 cited Hyedon v NRMA Ltd v NRMA Ltd (2000) 51 NSWLR 1 cited Jubilee Mines NL v Riley (2009) 253 ALR 67 cited Macquarie International Health Clinic Pty Ltd v Sydney South West Area Health Service [2010] NSWCA 268 cited Masters v Cameron (1954) 91 CLR 353 considered Middleton v Aon Risk Services Australia Ltd [2008] WASCA 239 cited Moffatt Property Development Group Pty Ltd v Hebron Park Pty Ltd [2009] QCA 60 cited Pagnan SpA v Feed Products Ltd [1987] 2 Lloyd's Rep 601 cited National Exchange Pty Ltd v Australian Securities and Investments Commission (2004) 49 ACSR 369 cited Queensland Electricity Generating Board v New Hope Collieries Pty Ltd [1989] 1 Lloyd's Rep 205 cited Thorby v Goldberg (1964) 112 CLR 597 cited Yorke v Lucas (1985) 158 CLR 661 cited Spencer-Bower, Turner and Handley, Actionable Misrepresentation (4th ed, 2000, Butterworths, London)