Quinn, Robert George v Given, Brian Alexander [1980] FCA 27
Federal Court of Australia
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CATCHWORDS
Trade Practices - false or misleading statements ~ false
representations - whether representations made deliberately
or recklessly.
Procedure - appeal against severity of penalty - principles
to be applied - facts in mitigation to be proved or agreed -
erroneous view that statement by counsel of facts in mitigation
was not an agreed statement.
Trade Practices Act 1974 s.53
Federal Court of Australia Act 1976 s.24(1)
Robert George Quinn v. Brian Alexander Given
N.S.W. No. G95 of 1978
Coram: Smithers, Northrop and Fisher JJ.
Melbourne
17 March 1980
IN THE FEDERAL COURT _OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY No. G95 of 1978
GENERAL DIVISION
ON_APPEAL FROM A SINGLE JUDGE OF THI
FEDERAL COURT OF AUSTRALIA
IN THE MATTER OF THE TRADE PRACTICES
ACT 1974
BETWEEN:
ROBERT GEORGE QUINN
Appellant
- and -
BRIAN ALEXANDER GIVEN
Respondent
ORDER
JUDGES MAKING ORDER: Smithers, Northrop and Fisher JJ.
DATE OF ORDER: 17 March 1980
WHERE MADE: Melbourne
THE COURT ORDERS THAT:
1. The appeal be allowed.
2. Those orders entered on 29 May 1979 in actions No. G12,
G.16, G17, G19, G20, G22 and G23 of 1978 be varied in
each case by the substitution of the following fines
to be paid to the Commonwealth:
In respect to G12 of 1978 - $1,000.00
In respect to G16 of 1978 - $3,000.00
In respect to G17 of 1978 - $1,000.00
In respect to G19 of 1978 - # 500.00
In respect to G20 of 1978 - 100.00
In respect to G22 of 1978 - $$ 500.00
In respect to G23 of 1978 - 100.00
The respondent pay the appellant's costs of
the appeal, limited to the costs of and incidental
to the day of hearing.
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IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY No. G95 of 1978
—~we ww
GENERAL DIVISION
ON APPEAL FROM A SINGLE JUDGE OF THE
FEDERAL COURT OF AUSTRALIA
IN _ THE MATTER OF THE TRADE PRACTICES
ACT _1974
BETWEEN:
ROBERT GEORGE QUINN
Appellant
- and -
BRIAN ALEXANDER GIVEN
Respondent
CORAM Smithers, Northrop and Fisher JJ.
17 March _1980
a
REASONS FOR JUDGMENT OF THE COURT
Robert George Quinn ("the appellant") appeals against
eight fines imposed on him in respect of a number of breaches
of s.53 of the Trade Practices Act 1974 ("the Act"). The
reasons for Judgment and the orders of the Court described
these fines as "pecuniary penalties" but a perusal of the
transcript indicates that they were without doubt fines
imposed pursuant to 8.79 of the Act.
Snuffa Pty. Limited, a company with which the appellant
was associated, also appealed against fines imposed simultaneously
on it in respect of three admitted offences. However, it did
not proceed with its appeal when it was called on for hearing
on 15 June 1979, the reason doubtless being that it was, we
were told, placed in liquidation after the institution of the
appeal.
The appellant pleaded guilty to eight charges of
contravention of the Act. In respect of three of these
charges his offence was that he was knowingly concerned in
the commission by Snuffa Pty. Limited of each of its three
offences. At the times relevant to these three charges he
was the managing director of that company.
Between 1968 and 1971 the appellant was the managing
director of another company which was marketing Sargom fire
extinguishers, In 1971 he left that company and set up his
own business of manufacturing and marketing fire extinguishers,
At this time he traded under the unregistered business name of
"Snuffa Pty. Limited". There was not at that time a company
incorporated under that name. It was not in dispute that he
was engaged in trade or commerce among the States.
A limited company was incorporated by the appellant on
15 October 1976 under the name Snuffa Pty. Limited. This
company acquired the business of the appellant who became
its managing director and managed and controlled its affairs,
Prior to the incorporation of the company the appellant in
the course of his business caused to be made certain represent-
ations, as a result of which five informations were laid against
him pursuant to s.79 of the Act. Subsequent to its incorporation
Snuffa Pty. Limited caused to be made further representations,
in respect of which representations three informations were
laid against it pursuant to that section. A further three
informations were laid against the appellant alleging that
he was knowingly concerned in the commission of the offences
the subject of the charges against the company. A number of
additional charges were laid against the appellant, and Snuffa
Pty. Limited, all of which were withdrawn.
The informations came on for hearing on 18 August 1978.
Snuffa Pty. Limited pleaded guilty to the offences charged against
it. Those offences were as follows:-
No. G7 of 1978 - that on or about 26 September 1977
at Sydney in the State of New South Wales Snuffa Pty.
Limited was guilty of an offence against Section 79 of the
Trade Practices Act 1974 in that it did, 1n contravention
of Section 53(a) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers falsely
represent that the said goods were of a particular standard,
quality or grade in that the said Snuffa Pty, Limited on
that day represented the said goods complied in performance
with A.S.A.163.
No. G9 of 1978 - that on or about 26 September 1977 at
Sydney in the State of New South Wales Snuffa Pty. Limited
was guilty of an offence against Section 79 of the
Trade Practices Act 1974 in that it did, in contravention
D
of Section 53(f) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers make
a false statement concerning the need for goods in that
the said Snuffa Pty. Limited on that day, in an advertisement
published by it, did state 1n respect of the said goods;
"You must have an extinguisher fitted adjacent
to each exit on your van. At around $12.50
(Retail) we suggest a 'Snuffa' 907G BCF Type
is about the best value around."
No. Gil of 1978 - that on or about 12 January 1978 at
Sydney in the State of New South Wales Snuffa Pty. Limited
was guilty of an offence against Section 79 of the Trade
Practices Act 1974 in that it did in contravention of
Section 53(c) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers
represent that the said goods had performance character-
istics they did not have in that on that day in an article
reprinted from the publication 'The Australian Boating
Industry' attached to an advertisement published by the
said Snuffa Pty. Limited it was stated in respect of the
said goods;
"The maker claims that the unit meets the
efficiency tests carried out by the New South
Wales Board of Fire Commissioners agaznst
Class 1, 2 and 3 fires - in section l, 6, 3
of the Australian Standards Specification A.S.A,
163."
The appellant also pleaded guilty to the offences
charged against him, which were as follows:-
No. Gl2 of 1978 - that on or about 26 September 1977 at
Sydney in the State of New South Wales Snuffa Pty. Limited
was guilty of an offence against Section 79 of the Trade
Practices Act 1974 in that it did, in contravention of
Section 53(a) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers falsely
represent that the said goods were of a particular standard,
quality or grade in that the said Snuffa Pty. Limited on
that day represented the said goods complied in performance
with A.S.A.163 and Robert George Quinn was knowingly
concerned in the commission of the said offence.
No. G14 of 1978 - that on or about 26 September 1977 at
Sydney in the State of New South Wales Snuffa Pty. Limited
was guilty of an offence against Section 79 of the Trade
Practices Act 1974 in that it did, in contravention of
Section 53(f) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers make
a false statement concerning the need for goods in that
the said Snuffa Pty. Limited in an advertisement published
by it, did state in respect of the said goods;
"You must have an extinguisher fitted adjacent
to each exit on your Van. At around $12.50
(Retail) we suggest a 'Snuffa' 907G BCF type
is about the best value around."
and Robert George Quinn was knowingly concerned in the
commission of the said offence.
No. Gl6 of 1978 =- that on or about 12 January 1978 at
Sydney in the State of New South Wales Snuffa Pty. Limited
was guilty of an offence against Section 79 of the Trade
Practices Act 1974 in that it did, in contravention of
Section 53(c) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply '
of goods described as 'Snuffa' fire extinguishers represent
that the said goods had performance characteristics they
did not have in that in an article attached to an advert-
isement published by the said Snuffa Pty. Limited it was
stated in respect of the said goods;
"The maker claims that the unit meets the
efficiency tests carried out by the New South
Wales Board of Fire Commissioners against
Class 1, 2 and 3 fires - in section 1, 6, 3
of the Australian Standards Specification A.S.A.
163."
and Robert George Quinn was knowingly concerned in the
commission of the said offence.
No. G17 of 1978 - that on or about 17 February 1977 in
the State of Victoria Robert George Quinn was guilty
of an offence against Section 79 of the Trade Practices
Act 1974 an that he did, in contravention of Section 53(a)
of the said Act in trade or commerce in connexion with the
supply of goods described as a 'Snuffa' fire extinguisher
falsely represent that the said goods were of a
particular standard, quality or grade in that the said
Robert George Quinn on that day did state in respect
of the said goods; "This unit complies in performance
with A.S.A. 163."
No. G19 of 1978 - that on or about 17 February 1977 in
the State of Western Australia Robert George Quinn was
guilty of an offence against Section 79 of the Trade
Practices Act 1974 in that he did, in contravention of
Section 53(a) of the said Act in trade or commerce in
connexion with the promotion by advertising of the supply
of goods described as 'Snuffa' fire extinguishers falsely
represent that the said goods were of a particular
standard, quality or grade in that the said Robert George
Quinn on that day, did state in respect of the said
goods; "one piece, seamless impact extruded aluminium
container, the strength requirements of which comply with
A.S.A. 163".
No. G20 of 1978 - that on or about 23 March 1977 in the
State of Queensland Robert George Quinn was guilty of an
offence against Section 79 of the Trade Practices Act 1974
in that he did, in contravention of Section 53(a) of the
said Act in trade or commerce in connexion with the supply
of goods described asa'Snuffa' fire extinguisher falsely
represent that the said goods were of a particular standard,
quality or grade in that the said Robert George Quinn did
state in respect of the said goods, "This unit complies
in performance with A.S.A. 163",
No. G22 of 1978 - that on or about 21 February 1977 in the
State of Queensland Robert George Quinn was guilty of an
offence against Section 79 of the Trade Practices Act 1974
in that he did, in contravention of Section 53(c) of the
said Act in trade or commerce in connexion with the supply
each
of goods described as a 'Snuffa' fire extinguisher represent
that the said goods had an approval they did not have in
that the said Robert George Quinn on that day did state
in respect of the said goods: "Approved by Yachting
Association of Australia".
No. G23 of 1978 ~ that on or about 8 September 1977
in the State of Tasmania Robert George Quinn was guilty
of an offence against Section 79 of the Trade Practices
Act 1974 in that he did, in contravention of Section 53(a)
of the said Act in trade or commerce in connexion with the
supply of goods described as a 'Snuffa' fire extinguisher
falsely represent that the said goods were of a particular
standard, quality or grade in that the said Robert George
Quinn on that day did state in respect of the said goods:
"This unit complies in performance with A.S.A. 163".
The appellant and Snuffa Pty. Limited were convicted of
offence charged. Fines were imposed as follows, namely:-
In respect to G7 of 1978 the sum of $ 8,000
In respect to G9 of 1978 the sum of $ 2,000
In respect to Gll of 1978 the sum of $10,000
In respect to Gl4 of 1978 the sum of $ 400
In respect to G16 of 1978 the sum of $ 6,000
In respect to G12, G17, G20 and G23
of 1978 a penalty of $2,000 in each
case, a total of $ 8,000
In respect to G19 of 1978 the sum of $ 1,000
In respect to G22 of 1978 the sum of $ 1,000
The principles which should guide this court in dealing
with appealswhich lie generally pursuant to s.24(1) of the
Federal Court of Australia Act 1976 are laid down in Kovac v
R (1977) 15 A.L.R. 637 at pp.640 to 643. Such principles
were applied in respect of an appeal against a pecuniary penalty
imposed under s.76 of the Act; Pye Industries Sales Pty, Ltd. v
Trade Practices Commission (1979) 2 A.T.P.R. 18311. A fortiori
in our opinion, they would be applicable to an appeal against
a fine imposed under s.79 of the Act.
Of particular relevance are three sentences set out in the
reasons in the latter case (p.18,325) which sentences are
extracted from R v Tait (1979) 24 A.L.R. 473 at p.476.
"An appellate Court does uot interfere with the sentence
imposed merely because it is of the view that that
sentence is insufficient or excessive, It interferes
only 1f it be shown that the sentencing judge was in
error in acting on a wrong principle or in misunderstanding
or in wrongly assessing some salient feature of the
evidence, The error may appear in what the sentencing
judge said in the proceedings, or the sentence itself
may be so excessive or inadequate as to manifest such
error."
Counsel for the appellant contended, inter alia, that the
learned trial judge acted upon considerations based on evidence
which was not before him. To some extent that may be so, but
there was in our opinion no error of any substance in this
respect. However a careful reading of the trial judge's
reasons for imposing the fines and also of the transcript of the
hearing before him satisfies us, somewhat paradoxically, that
the trial judge did not have regard to considerations which
outht to have affected the exercise of his discretion. If this
be the case, the learned trial judge in the words of the above
10.
recited dicta was "in error in... misunderstanding or in
wrongly assessing some salient feature of the evidence". In
these circumstances this court would be justified in intervening.
In respect of all the admittedly false representations
it was obviously relevant to the question of penalty for the
trial judge to know how each of the contraventions came about,
and how in particular the false statements came to be placed
on the equipment or in the advertising material. Likewise it was
relevant to know what steps, if any, the appellant took to
rectify the position, i.e. to retrieve the extinguishers and the
material after he became aware of the falsity of the statements.
The learned trial judge acknowledged the relevance of these
matters in his reasons, where he lamented the lack of agreed
or proven facts on these topics. In particular, on at least
two occasions, he adverted to the fact that in the absence of
such evidence he could only conclude that the statement was
"a deliberate falsehood or at least made with reckless
indifference to its truth or falsity" or, on another occasion,
that it was "made at least in reckless disregard of its truth
or falsity". It 1s at least open to this court to conclude that
his Honour was of opinion that there was no evidence before him
on the question of whether the conduct of the appellant was
deliberate or reckless or merely careless or slipshod. Likewise
it would follow that there was no evidence as to the degree of the
reckless or deliberate conduct of the appellant, if lack of
evidence to the contrary compelled him so to label the appellant's
behaviour.
ll.
The degree of wilfulness of the deception has been
accepted by this court as an important consideration in
fixing penalty (see per Smithers J. in Hartnell v Sharp
Corporation of Australia Pty. Ltd. (1975) 5 A.L.R. 493). Thus
the absence of evidence on the matter, if such be the case,
was a Significant factor in fixing the appropriate amount of
a fine. Moreover as the learned trial judge very properly
said in his reasons, statements from the bar table are no
substitute for agreed or proved facts,
In these circumstances it is for us to consider carefully
what facts relevant to the conduct of the appellant were
properly before the trial judge at the hearing and whether he gav
effective consideration to such facts. For these purposes it
18 necessary to go in the first instance to the transcript record
of the hearing, which record forms part of the appeal book.
Shortly after the commencement of the hearing on 8 August
1978 a question arose as to the status of a document prepared
by the prosecution and headed "statement of facts". Counsel
for the appellant indicated that he could not accept as correct
all of the statements in the document but that doubtless the
matters therein could be said "from the bar table". The trial
judge said, and in our view very properly said;
"Not in my court, Mr. Rogers. Any evidence, any
facts that are relied upon by either side will be
proven in the normal way unless they are agreed."
Subsequently certain passages in the statement were
deleted and it appears that the statement was then accepted by
12.
counsel for the appellant, or at least that he withdrew
his objection. Even though the document was not marked as
an exhibit, the trial judge referred and relied on it in
his reasons, stating that it was tendered with the consent of
the then defendant and the defendant company. It is against
the background of this exchange that subsequent happenings
fall to be considered.
Upon the conclusion of the address of counsel for the
prosecution, the court adjourned for approximately a quarter
of an hour. Upon resumption of the hearing counsel for the
appellant made, virtually at the opening of his address, the
following statement:
"We are obliged to your Honour for giving us further
time and we utilised that in coming to an agreement
as to the statement of facts that I intend to put
to your Honour in mitigation in general terms".
Counsel then addressed for half an hour, or thereabouts,
and in so doing stated to the trial judge many facts which he
submitted were relevant to explaining the appellant's conduct.
Counsel for the prosecution did not at any time indicate that
a particular fact was not agreed, nor did he make any comment
in respect of his opponent's opening statement that an agree-
ment had been reached in respect of the statement of facts which
was about to be put before the trial judge. On one occasion
only did he antervene and then to object to the tendering of
both a report from the Department of Productivity, Instrument
Services Laboratory dated 18 July 1977 and a document intituled
"Australia Standard 242". His objection was to the relevance of
the two documents on the question of penalty. These documents
13.
however appear in the appeal hook as exhibits 2 and 3 though
again there is no reference in the transcript to their admission
into evidence. On no occasion either during his opponent's
address or in his own reply did counsel for the prosecution
object or in any way draw attention to any fact stated on behalf
of the appellant as not being an agreed fact or as having the
status of a "mere statement from the bar table".
In all the circumstances the only conclusion an appellate
court can draw is that all facts stated by counsel for the
appellant in his address in mitigation were agreed facts. The
learned trial judge however generally appears to have accorded
to these facts only the status of "statements from the bar table".
In so doing it would appear that he overlooked the statement of
counsel for the appellant at the commencement of his address
that they were agreed facts, and his opponent's implicit
concurrence in that statement. In our opinion all facts stated
in the address of counsel for the appellant must be taken as
being facts the truth of which was agreed by the prosecution.
In these circumstances they are all available and required to
be taken into account by the trial judge in assessing the
appropriate fines. The facts are agreed evidence to which he
must have regard, though the weight or significance he will
attach thereto is a matter for his decision. He cannot 1gnore
these facts on the basis that they were not agreed or proved.
It follows that it is necessary to consider the facts
put forward on behalf of the appellant in relation to each
offence. Such consideration will determine whether there are
14.
matters relevant to the "degree of wilfulness" of the appellant
and the steps which he took to retrieve the position when he
became aware of the false statements.
The contraventions fall, for the purpose of considering
these two topics, into three categories. First, the represent-
ation that the equipment complied with the S.A.A. standards
in respect of performance and strength and with the efficiency
tests of the N.S.W. Board of Fire Commissioners in relation
in each instance to A.S.A. 163, which representations were
either printed on the extinguishers or contained in advertising
pamphlets. Second, the representations that there was a legal
requirement that caravan owners must have an extinguisher
fitted adjacent to each exit on their vans, which representation
comprised an extract of an article and was contained in an
advertising pamphlet. Finally, the representation to the
effect that the equipment was "approved by the Yachting
Association of Australia", which was printed on the fire
extinguisher.
In respect of the first category the trial judge stated
as follows:
"No evidence was called by the defendant, Quinn or the
defendant company to explain how it came about that the
false statement relating to compliance with the Standards
Association of Australia (S.A.A.) standards was used
to describe the article except that counsel for the
defendant and the defendant company made reference to the
test conducted in 1971 and stated from the bar table
that some reliance was placed on the 1971 test. In the
absence of evidence to the contrary I can only conclude
that references to the Standards Association of Australia
standards as being those with which the extinguisher
complied was a deliberate falsehood or at least made
with reckless indifference to its truth or falsity."
15.
In his submissions counsel for the appellant put the followin
facts before the court and for obvious reasons I do not state
them in full. Between the years 1968-1971 the appellant was
managing director of an organisation which marketed a "Sargom"
fire extinguisher. On 7 July 1971 a test was carried out at the
Paddington Fire Station on this extinguisher, which test produced
a satisfactory result. Upon leaving the "Sargom" organisation
the appellant manufactured his own fire extinguisher, initially
called "Star" but subsequently "Snuffa", which extinguisher was,
at the outset at least, identical with the "Sargom" extinguisher.
This was done because the appellant understood that the
"Sargom" extinguisher had passed the New South Wales Fire
Brigade test and therefore believed that his extinguisher
(identical but for the label) would pass the same test.
Subsequently, changes were made to the extinguisher by the
appellant, which changes he understood to be improvements,
namely the addition of a handle, a stainless steel mounting
bracket and an aluminium container. Later 1n 1975 the appellant
installed his own pressure filling equipment but continued to
purchase "the mix from Pacific Chemicals". The latter
organisation changed the composition of the mix but advised
the appellant that the change would not impair the performance
of the extinguisher, It was conceded that a test by the Board
of Fire Commissioners of the "Snuffa" extinguisher in 1977 did
not produce the satisfactory result produced by that of the
"Sargom" in 1971, but it was stated as a fact that there was
no scientific explanation why that occurred. In placing the
representation on the extinguisher the appellant did not use a
square black and white sticker such as used by the S.A.A. but
ewe reine rene ee a a ee - -- - +
16.
a round yellow sticker. This was done, it was said, for the
purpose of attempting to ensure that there would be no mistake by
a member of the public in relation to the stickers,
In our opinion these agreed facts are relevant to the
question whether there was wilful deception, and should have
been taken into account by the trial judge when he concluded
that the deception was deliberate or reckless. In failing to
do so he fell into error.
It is to be observed that the offences referred to in
the informations G17, G20 and G23 of 1978 all arose out of
one single decision made by the appellant, namely the decision
to use on his extinguishers the statement that the unit
complied in performance with A.S.A. 163. That decision
proceeded on the faith, inter al1za, of advice from Pacific
Chemicals that the change by Pacific Chemicals in the composition
of its "mix" would not impair the performance of the extinguisher.
It was that one decision which constituted the relevant fault of
the appellant. Once that decision was made the fault necessarily
manifested itself wherever the extinguisher was displayed for
gale. The fact that there were three charges, namely those
last mentioned, merely reflected that one fault albeit in three
manifestations.
On the question of the steps which the appellant took to
remedy the situation after he became aware of the falsehood,
the trial judge said as follows:
17.
"The defendant Quinn was first interviewed about the matters
giving rise to the prosecutions in June 1976, a period in
some instances long before the offences were committed.
It 18S suggested that the widespread distribution of the
extinguishers ranging from Brisbane to Hobart and Perth
with the offending words still printed on them as late as
1977 and 1978 was attributable to the fact that the
wholesalers would not co-operate and retrieve the
extinguishers from the retailers so that the offending
words could be obliterated.
I do not accept that explanation. There is no suggestion of
correction by advertisement or any other publicity to
inform consumers of the falsity of the statement relating
to standards."
On this aspect in so far as it related to fire extinguishers,
counsel for the appellant stated that the appellant attended a
total of something like six hours of interviews with officers
of the Trade Practices Commission and that the appellant was
attempting to be helpful. After these conferences the appellant
travelled around Australia and applied stickers to cover up
the offending stickers on the extinguishers held by his customers.
The customers of the appellant (or the Snuffa company) were
wholesalers and they would not supply the appellant with lists
of the retailers who were their customers. Thus it was that
three extinguishers were found interstate in the hands of
retailers not covered by the stickers. This was in circumstances,
as set out in the prosecution's agreed statement of facts,
that 100,000 units had been distributed to the capital cities.
Counsel for the appellant contended that this showed "a real and
genuine attempt to rectify the situation".
In respect of the false information contained in the
pamphlets the appellant gave instructions to an officer of the
company, a Mr. Byrne, to recall the pamphlets. Mr. Byrne was
18.
unformed that the Sydney Building Information Centre had
no more of the pamphlets in question. However in respect of the
reprint of the article in the publication "The Australian
Yachting Industry" even though it was not on public display,
it was made available to a person who specifically requested
it by filling in the number of the Snuffa display in what was
doubtless a literature request form. The pamphlet containing
the representation 'concerning compliance with A.S.A.163 was
obtained in a suburb of Perth.
It is apparent that the trial judge has not paid regard
to all the facts in assessing the efforts which the appellant
made in attempting to remedy the situation caused by the
distribution of the offending equipment and material.
Moving to the leaflet which reproduced the draft amendment
to the motor traffic regulations and the message to "All
Caravan Owners" the trial judge had this to say in his reasons:
"Again there is no evidence to explain how this false
statement came to be used in advertising material.
Counsel for the defendant... stated from the bar table
that Mr. Quinn was under the impression that the draft
regulations had been adopted as law but as there 18s
no explanation as to how this impression was formed
I must conclude that it was made at least in reckless
disregard of its truth or falsity."
Counsel for the appellant stated the following facts in his
address, after referring to the actual state of the pamphlet
containing the representation. He said that the appellant was
under the impression that the draft regulation had been adoptcd
as law. The appellant had made the suggestion to the Committee,
which was responsible for the draft regulations, that there should
19.
be fire extinguishers adjacent to each exit of a caravan. Thus
when the draft amendment came out, incorporating the appellant's
suggestion, it was the appellant's belief that his representations
were successful and that there was official endorsement for
the proposition he had advanced.
These facts, in our view, have not the status merely of
statements from the bar table but were agreed facts and were
relevant to be taken into account in determining how the false
statements came to be used in the advertising material. They
are also relevant to the question whether the appellant acted
in reckless disregard of the truth of the statement. The
appellant made similar efforts to remedy the situation in that
he instructed Mr, Byrne to withdraw this pamphlet from
circulation. However again, although not displayed to the
public, it was available on request at the Building Information
Centre.
In respect of the foregoing representations the trial judge
stated that there was "no attempt to prove accident or mistake
or a genuine belief in the truth of the representations made,
nor was there any real effort to remedy the effects of the
falsehood..." In our view such a finding could only have been
made on the basis that all facts stated by counsel for the
appellant were made as "statements from the bar table", If
the position is in accordance with our view that such state-—
ments, in so far as they were of fact, were agreed statements of
fact, there was an attempt to prove accident, or mistake or a
genuine belief. However we do not go so far as to say that
20.
such an attempt was wholly successful. It did, on a number
of scores, go a certain distance, and to this extent the trial
judge was obliged to give consideration to the facts proved.
The final representation was contained in a statement
printed on a yellow fire extinguisher to the effect that 1t was
"Approved by Yachting Association of Australia". It was seen
by an officer in a suburb of Brisbane. Apart from stating that
there was no such body as the "Yachting Association of Australia"
the learned trial judge made no comment on the circumstances
concerning the commission of this offence. He did however exclude
it from his finding in the previous paragraph that there was
no attempt to prove "accident or mistake or a genuine belief",
doubtless because a letter from the Secretary of the Yachting
Association of New South Wales dated 8 March 1977 was admitted
as an exhibit. This letter indicated the extent of the approval
that that Association gave in 1975 to the "Snuffa" extinguisher
and that it was contemplated that the Australian Yachting
Federation would subsequently approve.
There were however additional facts put forward by counsel
for the appellant. The Australian Yachting Federation did, as
contemplated by the above letter, in 1ts set of rules which came
into force on 1 July 1977 approve of fire extinguishers which
covered the 'Snuffa"extinguisher. Moreover the incorrect name of
the Federation arose because the particular canisters were of
French manufacture and the French manufacturer mistranslated
Australian Yachting Federation into Yachting Association of
Australia. Counsel also stated that in as many cases as possible
21.
stickers were affixed to the cans to cover the offending
representations.
In the circumstances there was in respect of each offence
additional evidence to which the learned trial judge was obliged
to give consideration. He failed to do so because of a mis-
understanding as to its status. The impact of the evidence
generally is to characterize the conduct of the appellant as
careless rather than deliberate or reckless. This additional
evidence in our view justifies a reduction in the fine imposed
in respect of each offence other than the offences charged in
proceedings G14 of 1978.
We consider that the appeal should be allowed and that subjex
to the further reductions proposed in the next succeeding
paragraph, the fines in respect of all offences other than in
proceedings G14 of 1978 should be reduced by one half thereof.
For the reasons previously set out it 1s also our view
that in respect of the offences charged in proceedings G17,
G20 and G23 of 1978 there should be imposed a total fine of
$1,200 apportioned as to $1,000 thereof to the offence charged
in Gls of 1978,$100 as to the offence charged in G20 of 1978
and $100 as to the offence charged in G23 of 1978. The total
of the fines imposed will then amount to $6,600, made up as
follows:
G14 - $ 400
G16 - $ 3,000
G12 - $ 1,000
G17 $ 1,000
G20
G23
G19
G22
The appellant should have his costs of the appeal.
22.
100500
6,600
I certify that this and the 21
preceding pages are a true copy
of the Reasons for Judgment of
the Court herein.
TE S22
Associate to Smithers J.
Dated: 17 March 1980