Tomlinson P.J. & Anor v Cut Price Deli Pty Ltd [1995] FCA 637

CATCHWORDS TRADE PRACTICES - s 52 misleading and deceptive conduct - representations of weekly turnover and gross profit margins made during negotiations for the purchase of a delicatessen franchise - reliance on representations TRADE PRACTICES - s 82 damages - measure of damages available due to reliance on misleading representations includes a component for consequential loss suffered after the date of purchase TRADE PRACTICES - s 87 avoidance order of franchise agreement refused PRACTICE AND PROCEDURE - valid cross-claim entitling the first respondent corporation to a set-off in reduction of its liability to applicants on their claim - other respondents liable to applicants under s 82 on the ground of their involvement in first respondent's conduct not entitled to rely on first respondent's set-off to reduce the amount of their liability to applicants - all respondents liable concurrently and severally, not jointly Income Tax Assessment Act 1936 (Cth) - s 60(2) Income Tax Ruling - 2354 Trade Practices Act 1974 (Cth) - ss 52, 75B, 82 and 87 Gates v The City Mutual Life Assurance Society Limited (1986) 160 CLR 1 Followed Gould v Vaggelas (1985) 157 CLR 215 Considered Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (1988) 79 ALR 83 Followed JAD International Pty Ltd v International Trucks Australia Limited (1994) 50 FCR 378 Followed BO Morris Ltd v Perrott and Bolton [1945] 1 All ER 567 Followed Netaf Pty Ltd v Bikane Pty Ltd (1990) 92 ALR 490 Applied Re Sgambellone; Ex parte Jacques (1994) 126 ALR 71 Referred to Tomlinson v Cut Price Deli Pty Ltd (1992) 112 ALR 122 Followed In re K.L. Tractors Ltd [1954] VLR 505 Referred to Trade Practices Commission v Manfal Pty Ltd (No 3) (1991) 33 FCR 382 Considered Walker v Secretary, Department of Social Security (1994) 120 ALR 123 Referred to