Lubidineuse,Gaetan Djino & Ors Bevanere Pty Ltd [1984] FCA 257

CATCHWORDS

TRADE PRACTICES - Consumer protection - sale of business - whether respondent engaged in misleading conduct - whether

conduct "in trade or commerce" - whether 3.52 limited to conduct

relating to consumers.

Trade Practices Act 1974 3.52

GAETAN DJINO LUBIDINEUSE AND OTHERS V. BEVANERE PTY LIMITED

G.89 of 1984

WILCOX J 31 AUGUST 1984 SYDNEY

rs

a

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY No. G.89 of 1984

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GENERAL DIVISION )

!

BETWEEN ; GAETAN DJINO LUBIDINEUSE AND OTHERS

Applicants

AND: BEVANERE PTY LIMITED

Respondent

REASONS FOR JUDGMENT

CORAM: WILCOX J DATE: 31 AUGUST 1984 PLACE: SYDNEY

This application arises out of the sale by the respondent to the applicants of the business of a cosmetic clinic. The applicants claim that in relation to that sale the respondent endaqed in conduct that was misleading or deceptive, and that this conduct constituted a breach of 3.52 of the Trade Practices Act 1974. They say that the respondent represented that a particular employee, whom thev describe as "the head qirl", Mrs Draqica Kostic, would remain as an emplovee after the purchase to assist them in running the business when in fact it was aware that she intended to leave almost immediately. She

left the clinic onlv three days after the purchase. Thev claim

damages. The respondent denies the making of the alleqed representations and that its conduct was in any way misleading or deceptive and argues that, in any event in its context. the conduct is not conduct to which s.52 applies. When the matter came on for hearing both parties indicated that the issue of damages would involve lenathy and detailed evidence. They agreed, and I therefore directed, that the trial should proceed in the first instance upon the issues relating to liability, deferring evidence relevant only to damages until it is