Federal Court of Australia
IN THE FEDERAL COURT OF AUSTRALIA
JUDGMENT No. 638. (81. NoT FOR GENERAL DISTRIBUTION
NEW SOUTH WALES DISTRICT REGISTRY
GENERAL DIVISION
CORAM
PLACE:
DATE:
BETWEEN:
AND:
AND:
BEAUMONT J SYDNEY
6 NOVEMBER 1987
No. WAG 49 of 1985
wee ewe
FALOM PTY. LTD.
Applicant
ELDER SMITH GOLDSBOROUGH
MORT LIMITED First Respondent
GEOFFREY ROBERT MICKEL' ALBERT STANLEY MICKEL
MIRRIAM JOSEPHINE MICKEL
KINGSLEY ALBERT MICKEL
Second Respondent
ELDER SMITH GOLDSBOROUGH
MORT LIMITED Cross Claimant
GEOFFREY ROBERT MICKEL ALBERT STANLEY MICKEL
MIRRIAM JOSEPHINE MICKEL
KINGSLEY ALBERT MICKEL
Cross~Respondents
MINUTES OF ORDER
THE COURT ORDERS:
Note:
Application dismissed.
Applicant to pay the respondents' costs.
Cross-claims dismissed; the cross -claims.
Settlement and entry of 36 of the Federal Court
no order as to the costs of
orders is dealt with in Order Rules.
ae
Sas iN
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
No. WAG 49 of 1985
GENERAL DIVISION
BETWEEN: FALOM PTY. LTD. Applicant
AND: ELDER SMITH GOLDSBOROUGH MORT LIMITED
First Respondent GEOFFREY ROBERT MICKEL ALBERT STANLEY MICKEL MIRRIAM JOSEPHINE MICKEL KINGSLEY ALBERT MICKEL
Second Respondent
AND: ELDER SMITH GOLDSBOROUGH MORT LIMITED
Cross Claimant
GEOFFREY ROBERT MICKEL
ALBERT STANLEY MICKEL MIRRIAM JOSEPHINE MICKEL
KINGSLEY ALBERT MICKEL
Cross~Respondents
CORAM: BEAUMONT J-- PLACE: SYDNEY DATE: 6 NOVEMBER 1987
REASONS FOR JUDGMENT
This is a claim for damages arising out of the sale of a farming and grazing property near Esperance. The purchaser, Falom Pty. Ltd. ("Falom") acquired the property for
the price of $520,000 ($100,000 of which was payable over
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corr
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eight years with interest at 10%) under a contract of sale made in August 1983 and completed in April 1984. Falom, a company controlled by Mr. E.J. Reck and his family, says that it was induced to enter into the transaction by misrepresentations made by Elder Smith Goldsborough Mort Limited ("Elders"), the agent for the vendors, and members of the Mickel family. Falom claims damages in the sum of $70,000. The respondents deny liability and, if the question arises, dispute that Falom suffered any damage in any event. Mr. Reck was Falom's principal witness. He is a German citizen and a farmer and a merchant banker in that country. He speaks a little English but it was necessary for him to give his evidence through an interpreter. He first visited Western Australia in May 1983; the object of his visit was to gather information about the investment situation in that State, and to buy a farm. He contacted Mr. H.J. Wegmann, another German citizen who had migrated to Australia and had purchased a farming property near Esperance. Mr. Wegmann suggested that Mr. Reck retain the services of Mr. J.D. von Altenstadt,*-another German citizen who had migrated to Australia and carried on business in Perth as an investment
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