Morton, G.J. & Anor v Baker, D.L. & Ors [1995] FCA 385

CATCHWORDS TRADE PRACTICES - misleading and deceptive conduct - whether false statements were made inducing partner to retire from firm -whether partner suffered loss of a commercial opportunity. Trade Practices Act 1974, ss 52, 82. Fair Trading Act 1987 (NSW), ss 42, 68. Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 GRAHAM JOHN MORTON & ANOR v DAVID LEWIS BAKER & ORS NG 558 OF 1992 Sackville J. 8 June, 1995 Sydney

FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY) No NG 558 of 1992 GENERAL DIVISION ) BETWEEN: GRAHAM JOHN MORTON First Applicant VALFRONT PTY LTD Second Applicant AND: DAVID LEWIS BAKER, JOHN EDWARD MYTTON BARNES, KENNETH CHARLES BORDA, PAUL GREGORY BROWN, RONALD JAMES CABBLE, PHILLIP JOHN COSTA, MARK HUNTER CULLEN, RICHARD GRANT GIBSON, RICHARD JOHN HARDMAN, HENRY K HERRON, REINHARD GOTTFRIED HOLZ, MAURICE LIONEL NEWMAN, PAUL CHRISTOPHER ROWE, JOHN BAYLEY RUSSELL, DENNIS GREGORY SCOTT, ROBERT RELLEE SKINNER, DAVID GLEN SLATER, DONALD WILLIAM STAMMER, DENNIS JOHN STYLES, GEORGE VARLAMOS, ANTHONY JOHN WHITEHEAD, MICHAEL GEOFFREY WHITWORTH, KEVIN EDWARD WYLD, ROBIN YANDLE First Respondents BAIN HOLDINGS PTY LTD Second Respondent BAIN & COMPANY LTD Third Respondent SACKVILLE J. SYDNEY 8 JUNE 1995 THE COURT ORDERS THAT: 1. The application be dismissed. 2. The applicants pay the costs of the respondents. NOTE: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY) No NG 558 of 1992 GENERAL DIVISION ) BETWEEN: GRAHAM JOHN MORTON First Applicant VALFRONT PTY LTD Second Applicant AND: DAVID LEWIS BAKER, JOHN EDWARD MYTTON BARNES, KENNETH CHARLES BORDA, PAUL GREGORY BROWN, RONALD JAMES CABBLE, PHILLIP JOHN COSTA, MARK HUNTER CULLEN, RICHARD GRANT GIBSON, RICHARD JOHN HARDMAN, HENRY K HERRON, REINHARD GOTTFRIED HOLZ, MAURICE LIONEL NEWMAN, PAUL CHRISTOPHER ROWE, JOHN BAYLEY RUSSELL, DENNIS GREGORY SCOTT, ROBERT RELLEE SKINNER, DAVID GLEN SLATER, DONALD WILLIAM STAMMER, DENNIS JOHN STYLES, GEORGE VARLAMOS, ANTHONY JOHN WHITEHEAD, MICHAEL GEOFFREY WHITWORTH, KEVIN EDWARD WYLD, ROBIN YANDLE First Respondents BAIN HOLDINGS PTY LTD Second Respondent BAIN & COMPANY LTD Third Respondent SACKVILLE J. SYDNEY 8 JUNE 1995 REASONS FOR JUDGMENT Introduction In these proceedings, the first applicant ("Mr Morton") and the second applicant ("Valfront") claim relief by reason of misrepresentations alleged to have been made in breach of s.52 of the Trade Practices Act 1974 and s.42 of the Fair Trading Act 1987 (NSW). The applicants allege that the misrepresentations