Reiffel v ACN 075 839 226 Ltd [2003] FCA 194

FEDERAL COURT OF AUSTRALIA

Reiffel v ACN 075 839 226 Ltd

[2003] FCA 194

TRADE AND COMMERCE – TRADE PRACTICES – consumer protection – misleading and deceptive conduct – statements in prospectus relating to property investment – financial forecasts – independent expert report in form of negative assurances as to financial forecasts – whether report was misleading or deceptive – whether caused loss – whether time barred

CORPORATIONS – prospectuses and disclosure – liability of independent expert for statements in prospectus in the form of negative assurances as to promoter's financial forecasts – whether misleading and deceptive under Australian Securities & Investments Commission Act 1989 (Cth) s 12DA or Corporations Law s 995 – whether ought be excused pursuant to s 1318 – whether caused loss

Federal Court of Australia Act 1976 (Cth) Pt IVA Trade Practices Act 1974 (Cth) ss 51AF, 52 Australian Securities & Investments Commission Act 1989 (Cth) s 12DA Corporations Law ss 995(2), 1005, 1318 John G Glass Real Estate Pty Ltd v Karawi Constructions Pty Ltd (1993) ATPR 41-249 referred to Heydon v NRMA Ltd (2000) 51 NSWLR 1 followed Bowler v Hilda Pty Ltd (1998) 80 FCR 191 referred to Escott v Barchris Construction Corporation 283 F Supp 643 (1968) considered Bulfin v Bebarfalds Ltd (1938) 38 SR (NSW) 423 applied Fraser v NRMA Holdings Ltd (1995) 55 FCR 452 applied Campomar Sociedad Limitada v Nike International Ltd (1999) 202 CLR 45 applied Sykes v Reserve Bank of Australia (1998) 88 FCR 511 cited Sydney Harbour Casino Properties Pty Ltd v Coluzzi [2002] NSWCA 74 cited Karedis Enterprises v Antoniou (1995) 59 FCR 35 referred to Blacker v National Australia Bank Ltd [2001] ATPR 41-817 referred to Murphy v Overton Investments (2001) 112 FCR 182 referred to Re International Vending Machines Pty Ltd [1962] NSWR 1408 considered Gamble v Hoffman (1997) 24 ACSR 369 considered Daniels v Anderson (1995) 37 NSWLR 438 followed Kenna & Brown Pty Ltd v Kenna (1999) 17 ACLC 1183 followed Circle Petroleum (Queensland) v Greensdale (1998) 16 ACLC 1577 followed Arnison v Smith (1889) 41 ChD 348 applied Aaron's Reefs Ltd v Twiss [1896] AC 273 applied Gould v Vaggelas (1985) 157 CLR 215 applied Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563 applied Sibley v Grosvenor (1916) 21 CLR 469 cited Dominelli Ford (Hurstville) Pty Ltd v Karmot Auto Spares Pty Ltd (1992) 38 FCR 471 cited Lam v Ausintel Investments Australia Pty Ltd (1989) 97 FLR 458 cited Smith v Chadwick (1882) 20 ChD 27 cited Barton v Armstrong (1976) AC 104 cited Australian Steel & Mining Corporation Pty Ltd v Corben [1974] 2 NSWLR 202 cited Duke Group Ltd (in liq) v Pilmer (1999) 153 FLR 1 cited Henville v Walker (2001) 206 CLR 459 applied I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 76 ALJR 1461, 192 ALR 1 applied