APF Properties Pty Ltd v Kestrel Holdings Pty Ltd (No 2) [2007] FCA 1561

FEDERAL COURT OF AUSTRALIA

APF Properties Pty Ltd v Kestrel Holdings Pty Ltd (No 2) [2007] FCA 1561

SALE OF LAND – purchase of rural properties for growing pyrethrum – joint venture including vendors and purchasers – valuations obtained by accountants acting for purchasers – price agreed on basis of valuations – valuations based on calculation of croppable land – subsequent lease back to vendor entity of homestead block Held: 1. Vendors made misleading and deceptive representations and were negligent in relation to the croppable area of the properties. 2. Valuer was negligent in relation to the croppable area and value of the properties. 3. In the circumstances valuer owed a duty of care to the purchasers. 4. Valuer's disclaimer not effective to prevent liability to purchasers. 5. No fiduciary duty owed by vendor to purchasers. 6. Lease of homestead block should not be set aside. 7. Measure of damages was difference between price paid and true value at time of purchase. 8. Damages should include consumer price index adjustment. 9. Value at time of trial was not more than price paid; even if it had been, measure of damage would not be affected. 10. Purchaser's cause of action arose before effective date of legislation for contributory negligence and proportionate liability. 11. Valuer entitled to full indemnity from vendors.

Trade Practices Act 1974 (Cth) ss 52, 53A(1)(b), 82(1B), 82(2), 84, 87CD Fair Trading Act 1990 (Tas) ss 14, 17(1)(b) Wrongs Act 1954 (Tas) ss 3, 4 Civil Liability Act 2002 (Tas) ss 4, 43B Jones v Dunkel (1959) 101 CLR 298 applied Australian Communications and Media Authority v Clarity 1 Pty Ltd (2006) 150 FCR 49 cited Spencer v The Commonwealth (1907) 5 CLR 418 at 432 cited Henville v Walker (2001) 206 CLR 459 cited I & L Securities Pty Limited v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109 applied Norberg v Wynrib [1992] 2 SCR 226 applied Pilmer v Duke Group Ltd (2001) 207 CLR 165 applied Hospital Products Pty Ltd v United States Surgical Corporation (1984) 156 CLR 41 cited News Ltd v Australian Rugby Football League Ltd (1996) 139 ALR 193 at 311 cited New Zealand Netherlands Society "Oranje" Inc v Kuys [1973] 2 All ER 1222 applied Flemington Properties Pty Ltd v Raine & Horne Commercial Pty Ltd (1997) 148 ALR 271 discussed Potts v Miller (1940) 64 CLR 282 cited Toteff v Antonas (1952) 87 CLR 647 cited Gould v Vaggelas (1985) 157 CLR 215 cited Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1 cited Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 cited Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281 cited Morgan Corporate Ltd v GWG Leviny Pty Ltd (1995) ATPR 41-414 cited Munchies Management Pty Ltd v Belperio Pty Ltd (1988) 58 FCR 274 cited Netaf Pty Ltd v Bikane Pty Ltd (1990) 26 FCR 30 cited Kenny & Good Pty Ltd v MGICA (1992) Ltd (1999) 199 CLR 413 cited Henderson v Amadio Pty Ltd (No 1) (1995) 62 FCR 1 cited Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd [1995] QB 375 cited Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd [1997] AC 191 cited Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241 cited Perre v Apand Pty Ltd (1999) 198 CLR 180 cited Ta Ho Ma Pty Ltd v Allen (1999) 47 NSWLR 1 discussed BT Australia Ltd v Raine & Horne Pty Ltd [1983] 3 NSWLR 221 applied Glass Real Estate Pty Ltd v Karawi Constructions Pty Ltd (1993) ATPR 41-249 cited Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592 cited Orion Pet Products Pty Ltd v Royal Society for the Prevention of Cruelty to Animals (Vic) Inc (2002) 120 FCR 191 cited MGICA (1992) Ltd v Kenny & Good Pty Ltd (1996) 140 ALR 313 followed Baxter v F W Gapp Co Ltd [1939] 2 KB 271 followed Wardley and King v Yurisich (2006) 153 FCR 78 cited Burke v LFOT Pty Ltd (2002) 209 CLR 282 applied C J Gross Land Capability Hand Book, Guidelines for the Classification of Agricultural Land in Tasmania, (2nd ed, Department Primary Industry Water Environment 1999) W D Duncan (ed) Joint Ventures Law in Australia, (2nd ed, The Federation Press 2005)