Hanave Pty Ltd v LFOT Pty Ltd [1999] FCA 357

FEDERAL COURT OF AUSTRALIA

Hanave Pty Ltd v LFOT Pty Ltd [1999] FCA 357

TRADE PRACTICES - misleading and deceptive conduct - inducing sale of retail shop premises - representations of tenant history and reliability - misdescription of retailers as "established high quality" tenants - non-disclosure of tenant's intention to cease trading - complete disclosure of tenants' financial status not required - unequal knowledge of representor and representee creates inference that representation has factual basis - non-disclosure of incentive monies paid to prolong tenancy arrangements - independence of statutory and contractual duties - significance of misrepresentation where purchaser relies on tenants' reputation - liability established by material representation objectively likely to induce entry into contract - misrepresentation need not be only factor inducing contract - misrepresentation actionable where it operated to reinforce opinion based on public reputation - liability created by combined effect of misrepresentations - failure of prospective purchaser to check accuracy of its opinion does not break causative link between loss and misrepresentation - liability of directors for breaches by company Trade Practices Act 1974 ss 52, 82 Smith v Land & House Property Corporation(1884) 28 ChD 7 cited, approved RAIA Insurance Brokers Ltd v FAI General Insurance Co Ltd (1993) 41 FCR 164 cited, approved Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 appl Gould v Vaggelas (1985) 157 CLR 215 cited Ricochet Pty Ltd v Equity Trustees Executor & Agency Co Ltd (1993) 41 FCR 229 cited, approved Henderson v Amadio Pty Ltd (No 1) (1995) 62 FCR 1 cited Sibley v Grosvenor (1916) 21 CLR 469 applied Dominelli Ford (Hurstville) Pty Ltd v Karmot Auto Spares Pty Ltd (1992) 38 FCR 471 cited Neilsen v Hempston Holdings Pty Ltd (1986) 65 ALR 302 cited