Chapman v Australian and New Zealand Banking Group Limited [2008] FCA 86

FEDERAL COURT OF AUSTRALIA

Chapman v Australian and New Zealand Banking Group Limited [2008] FCA 86

PRACTICE AND PROCEDURE – pleading – whether statement of claim adequately pleaded causation between misleading or deceptive misrepresentations and loss suffered – applicants pleaded they were induced by misrepresentations to enter into transaction by which they bought shares in a company and lent money to that company, and that absent the representations they would not have done so – applicants also pleaded that after entering into the transaction, they took various subsequent steps involving dealings with their shares and debt, and that those steps caused the applicants to incur further losses – whether pleading adequate as pleading of a "no transaction" case. Held: the causal link between either the representations or the principal transaction, and the subsequent steps and losses, must be pleaded. Federal Court Rules O 12 r 5(3) Australian Automotive Repairers' Association (Political Action Committee) Inc v NRMA Insurance Ltd [2002] FCA 1568 referred to Collex Waste Management Pty Ltd v Waste Recycling & Processing Service of New South Wales [1999] FCA 213 referred to Goldsmith v Sandilands (2002) 190 ALR 370 referred to Hungerfords v Walker (1989) 171 CLR 125 referred to Multigroup Distribution Services Pty Ltd v TNT Australia Pty Ltd & Anor (1996) ATPR referred to Police and Nurses Credit Society Ltd v Burgess Rowson (WA) Pty Ltd [2006] FCA 1395 referred to GEORGE EDWARD CHAPMAN AND OTHERS v AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED (ABN 11 005 357 522) NSD 1053 OF 2007

LINDGREN J

18 FEBRUARY 2008

SYDNEY IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NSD 1053 OF 2007

BETWEEN: GEORGE EDWARD CHAPMAN

First Applicant

MARGO JEANETTE CHAPMAN