Macdonald v Australian Wool Innovation Ltd [2005] FCA 105

FEDERAL COURT OF AUSTRALIA

Macdonald v Australian Wool Innovation Ltd [2005] FCA 105

CONTRACT – applicants left secure employment after being offered opportunity to engage in research and development venture – respondent subsequently withdrew from arrangement – whether parties had reached concluded agreement – whether agreement reached on all essential terms – whether contract, if any, uncertain – whether contract, if any, repudiated – measure of damages TRADE PRACTICES – misleading or deceptive conduct in trade or commerce –representations with respect to future matters – respondent corporation bears evidential onus of proof – whether at time representations made, respondent had reasonable grounds for making them – unconscionable conduct in business transactions – matters to be taken into account in determining whether conduct unconscionable – relevance of fact that applicants not under special disability or in position of special disadvantage Trade Practices Act 1974 (Cth) ss 51AC, 51A, 52, 82 and 87 Pagnan SpA v Feed Products Limited [1987] 2 Lloyd's Rep 601 at 619 referred to Storer v Manchester City Council [1974] 1 WLR 1403 at 1408 referred to Manatee Towing Co v Oceanbulk Maritime SA (The Bay Ridge) [1999] 2 Lloyd's Rep 227 at 240-1 referred to Pacific Carriers Limited v BNP Paribas (2004) 208 ALR 213 at [22] referred to Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 211 ALR 101 at [34] referred to Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 at 995-6 discussed Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 350 referred to Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 at 334 and 337 referred to Harvey v Pratt [1965] 1 WLR 1025 discussed Masters v Cameron (1954) 91 CLR 353 at 360-3 applied Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 at 548 discussed Sinclair, Scott and Co Ltd v Naughton (1929) 43 CLR 310 at 316-7 and 332 referred to Toyota Motor Corporation Australia Ltd v Ken Morgan Motors Pty Ltd [1994] 2 VR 106 at 131 discussed Seven Cable Television Pty Ltd v Telstra Corporation Ltd (2000) 171 ALR 89 referred to Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622 at 628 referred to Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 at 436-7 referred to Thorby v Goldberg (1964) 112 CLR 597 at 607 discussed G Scammell and Nephew Ltd v H C and J G Ouston [1941] AC 251 at 268 discussed Ipex Software Services Pty Ltd v Hosking [2000] VSCA 239 at [56] considered York Air Conditioning and Refrigeration (A/sia.) Pty Ltd v The Commonwealth (1949) 80 CLR 11 at 53 referred to Branir Pty Ltd v Owston Nominees (No. 2) Pty Ltd (2001) 117 FCR 424 at 525 discussed The Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 at 92 and 99 applied Sunbird Plaza Pty Ltd v Maloney (1988) 166 CLR 245 referred to Hadley v Baxendale (1854) 9 Ex 341, 156 ER 145 referred to Hungerfords v Walker (1989) 171 CLR 125 referred to Baltic Shipping Co v Dillon (1993) 176 CLR 344 at 368 referred to Unity Insurance Brokers Pty Limited v Rocco Pezzano Pty Limited (1998) 192 CLR 603 referred to Chaplin v Hicks [1911] 2 KB 786 discussed Malec v J C Hutton Pty Ltd (1990) 169 CLR 638 at 643 considered Sellars v Adelaide Petroleum NL (1994) 179 CLR 332 at 349 referred to L'Huillier v State of Victoria [1996] 2 VR 465 at 485 referred to Global Network Services Pty Ltd v Legion Telecall Pty Ltd [2001] NSWCA 279 referred to Fightvision Pty Ltd v Onisforou (1999) 47 NSWLR 473 at 505-7 referred to Glenmount Investments Pty Ltd v O'Loughlin (2000) 79 SASR 185 at 284 referred to Ikin v The Danish Club 'Dannebrog' Inc [2001] VSCA 123 referred to Australian Competition and Consumer Commission v Samton Holdings Pty Ltd (2002) 117 FCR 301 at 318 referred to Australian Competition and Consumer Commission v C G Berbatis Holdings Pty Ltd (2003) 214 CLR 51 at [9]-[10] and [5]-[16] applied Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 at 526 referred to Blomley v Ryan (1956) 99 CLR 362 referred to Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 at 461 and 474 referred to Louth v Diprose (1992) 175 CLR 621 at 637 referred to Phoenix Court Pty Ltd v Melbourne Central Pty Ltd (1997) ATPR (Digest) 46-179 at 54,432 considered H G Beale (ed.), Chitty on Contracts, 29th ed., London, Sweet & Maxwell, 2004 N C Seddon and M P Ellinghaus, Cheshire and Fifoot's Law of Contract, 8th Australian ed., Chatswood, NSW, LexisNexis Butterworths, 2002 IAN MAURICE MACDONALD v AUSTRALIAN WOOL INNOVATION LTD (ACN 095 165 558) V253 of 2003 RUSSELL ALLAN v AUSTRALIAN WOOL INNOVATION LTD (ACN 095 165 558) V254 of 2003 WEINBERG J 18 FEBRUARY 2005 MELBOURNE