Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2002] FCA 1018

FEDERAL COURT OF AUSTRALIA

Cordelia Holdings Pty Ltd v Newkey Investments Pty Ltd [2002] FCA 1018

TRADE PRACTICES – NEGLIGENCE – misleading or deceptive conduct – applicants having a course of dealing over many years with respondent estate agent – acquisition and sale of various properties – respondent oversaw management of some of applicants' businesses – respondent acted as project manager on behalf of applicants in respect of certain property developments – respondent subsequently acted as agent for vendor of a city building – applicants allege respondent made false representations before they entered contracts with vendor interests for purchase of building and carrying out of major refurbishment works to the property – whether respondent misled or deceived relevant applicants in relation to acquiring the building and guaranteeing obligations in respect of the purchase and major refurbishment costs of the building – disputes with vendor interests before settlement of those contracts – applicants settled those disputes and accepted further guarantee obligations – subsequent litigation between vendor interests and applicants – those disputes settled in mid-hearing – respondent had provided valuation of building prior to first settlement of disputes – whether respondent negligent in preparing that valuation – whether respondent made representations negligently in breach of common law duty of care – whether applicants relied on respondent's representations when purchasing the building and entering into the guarantees – whether applicants relied on those representations and the valuation when entering into the subsequent settlement transactions – whether respondent and relevant applicants in a fiduciary relationship in respect of acquisition of the building. EQUITY – fiduciary duties – whether respondent real estate agent, in the particular circumstances, owed any relevant fiduciary duty to applicant purchaser and applicant guarantors of the purchaser's obligations. Trade Practices Act 1974 (Cth), s 52 Fair Trading Act 1987 (WA), s 10 R v Saffron (1988) 17 NSWLR 395 referred to Jones v Dunkel (1958) 101 CLR 298 referred to Hanave Pty Ltd v Lfot Pty Ltd (1999) ATPR 41-687 referred to McKenzie v McDonald [1927] VLR 134 applied Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 applied Gonsalves v Debreczeni [1998] NSWSC 588 referred to