Hill, Dennis Ronald & Anor v Tooth & Co Ltd & Ors [1998] FCA 653

FEDERAL COURT OF AUSTRALIA trade practices - misleading and deceptive conduct - sale of a hotel - valuation - valuation of a business by capitalisation of future maintainable earnings - whether provision of a literally accurate part of a valuation to a prospective purchaser can constitute misleading and deceptive conduct - whether failure on the part of a purchaser to take reasonable care of their own interests affects liability under section 52 - reasonableness of reliance on trading figures - whether a sufficient nexus between the conduct and the damage has been established - whether misleading and deceptive conduct induced entry into the contract - materiality of inaccuracy in trading figures supplied to prospective purchaser negligence - duty of care - whether a valuer has a duty of care to a third party who relied on a valuation not addressed to that third party - reasonable forseeability - knowledge of the applicant as a member of a limited class damages - where misleading and deceptive conduct induce entry into a contract, damage is calculated by subtracting the true value of the property at the time of sale from the contract price - calculation of true value - relevance of resale value to true value Trade Practices Act 1972 (Cth) ss 52, 75B, 82 Fair Trading Act 1987 (NSW) ss 42, 68 Caltex Oil Australia Pty Ltd v The Dredge "Willemstad" (1976) 136 CLR 529 Gould v Vaggelas [1985] 157 CLR 215 San Sebastian Pty Ltd v Minister Administering the Environmental Planning and Assessment Act (1986) 162 CLR 340 Kizbeau v W.G. & B. Pty Ltd (1995) 184 CLR 281 Argy v Blunts & Lane Cove Real Estate [1990] 26 FCR 112 Parkdale Custom Built Furniture Pty Limited v Puxu Pty Limited [1982] 42 ALR 1 Taco Co of Australia Inc v Taco Bell Pty Ltd [1982] 42 ALR 177 Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (Reg) (1997) 71 ALR 448 Sutton v A J Thompson Pty Ltd (in liq) [1987] 73 ALR 233 Elders Trustee v Reeves [1987] 78 ALR 193 Henjo Investments Pty Ltd & Ors v Collins Marrickville Pty Ltd [1988] 79 ALR 83 Antoniou & Anor v Karedis Enterprises Pty Ltd & Anor (Einfeld J, unreported, 15 December 1994) BT Australia Ltd v Raine & Horne Pty Ltd (1983) 3 NSWLR 221 Plowman v McCarney & Associates Pty Ltd (Kinchington DCJ, unreported, 17 December 1990) Annechini & Anor v McDonald (Garling ADCJ, unreported, 23 December 1991) Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465 dennis ronald hill & anor v tooth & co ltd & ors ng 554 of 1994 EINFELD J 4 June 1998 Sydney