Rakic v Johns Lyng Insurance Building Solutions (Victoria) Pty Ltd (Trustee) [2016] FCA 430

FEDERAL COURT OF AUSTRALIA

Rakic v Johns Lyng Insurance Building Solutions (Victoria) Pty Ltd (Trustee) [2016] FCA 430 File number: VID 230 of 2014

Judge: BROMBERG J

Date of judgment: 27 April 2016

Catchwords: TRADE PRACTICES – misleading or deceptive conduct – representations made by prospective employer (respondent) to induce applicant to enter into contract of employment – representations as to future matters being that profits and sales in 2013 financial year were likely to meet or exceed profits and sales in 2012 and 2011 financial years, and that it was likely that for twelve months after March 2013 respondent would remain as profitable as previous two years – further representation as to respondent's lack of knowledge of matters rendering predictions unlikely – whether representations made – whether representations in trade or commerce – consideration of relevance of non-disclosure to establishment of pleaded case – whether reasonable grounds for predictions as to future matters – consideration of whose grounds need be reasonable in the context of representations made by a corporation – whether representation as to state of respondent's knowledge misleading or deceptive – no reasonable grounds for predictive representations – predictions misleading – representation as to state of respondent's knowledge not misleading or deceptive – representations relied upon by applicant and induced entry into contract of employment – consideration of correct approach to calculation of damages given multiple hypotheticals CONTRACTS – whether contract of employment entered into on 8 April 2013 included oral term that respondent would meet cost of applicant's motor vehicle lease in addition to salary set out in written contract – proper interpretation of clause entitling applicant to 2.5 per cent of net profit of respondent – contract of employment did not include putative oral term – interpretation of net profit clause that applicant entitled to proportion of profit in 2013 financial year corresponding with length of her service in that year