NSW Mutual Real Estate Fund Ltd & Anor v. Brookhouse, Reginald Sydney [1979] FCA 16

CATCHWORDS

Looe al NAL 4

Trade Practices - Misleading conduct - Liability of

principal ~- corporation.

Trade Practices Act 1974, ss.52, 82 and'84.

N.S.W. MUTUAL REAL ESTATE FUND LTD. & ANOR v. SYDNEY BROOKHOUSE

G No. 39 of 1978

Coram: Franki, St. John and Deane JJ. $ March 1979

Sydney

REGINALD

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY G No. 39 of 1978

GENERAL DIVISION

IN THE MATTER of the Trade Practices Act 1974

BETWEEN: N.S.W. MUTUAL REAL ESTATE FUND LIMITED and MEMBERS MANAGEMENT PTY. LIMITED

Appellants AND: " REGINALD SYDNEY BROOKHOUSB

Respondent

ORDER JUDGES MAKING ORDER: Franki, St. John and Deane JJ. DATE OF ORDER: 8 March 1979.

WHERE MADE: Sydney.

THE COURT ORDERS THAT:

1. The appeal be dismissed. 2. The appellants pay the respondent's costs.

IN THE FEDERAL COURT OF AUSTRALIA )

) NEW SOUTH WALES DISTRICT REGISTRY G No. 39 of 1978

GENERAL DIVISION

IN THE MATTER of the

Trade Practices Act 197!)

BETWEEN : N.S.W. MUTUAL REAL ESTATE FUND LIMITED and MEMBERS MANAGEMENT PTY. LIMITED

Appellants AND: REGINALD SYDNEY BROOKHOUSS

Respondent

CORAM: Franki, St. John and Deane JJ.

8 March 1979

REASONS FOR JUDGMENT

Franki J.

Reginald Sydney Brookhouse, the respondent herein, obtained judgment from a single judge of this Court against three defendants, N.S.W. Mutual Real Estate Fund Limited, ("the Fund company") Members Management Pty. Limited ("the Management company") and

Newbridge Finances Pty. Limited whose name was previously

-2- N.S.W. Mutual Loans Agency Pty. Limited ("the Agency company"). The Agency company was wound up on 8 February 1977. The Fund company and the Management company have appealed against the judgment ordering

the appellants and the Agency company, inter alia,

to pay the sum of $8,050 to the respondent together

with certain costs.

So far as is relevant the proceedings were based on an allegation that during February 1975 a Mr. Emdur, an employee of the Agency company and a Mr. Ollis, at all relevant times the manager of the Agency company and a director of the Management company and from January to October 1974 a director of the Fund company, had represented to the respondent that by investing $8,000 in the Fund company he would be able to borrow $30,000 from the Fund company within fourteen to sixteen weeks at what was a very favourable