Australian Competition and Consumer Commission v Australian Institute of Professional Education Pty Ltd (in liq) [2017] FCA 521

FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Australian Institute of Professional Education Pty Ltd (in liq) [2017] FCA 521 File number: NSD 453 of 2016

Judge: BROMWICH J

Date of judgment: 16 May 2017

Catchwords: CORPORATIONS – application for leave to proceed against a company in liquidation under s 500 of the Corporations Act 2001 (Cth) – proceedings alleging misleading, deceptive and unconscionable conduct against vocational education provider – principles applicable to exercise of discretion to grant leave to proceed – whether proceedings should remain stayed pending reconciliation of advance payments made to the company –whether public interest met by potential declarations in materially similar proceedings – where relief sought includes refund of substantial monies paid from public revenue and affects potential liabilities of numerous persons – where significant public interest in matter proceeding outweighs detriment to creditors CONSUMER LAW – representative case based on system of conduct or pattern of behaviour – where limited number of complainants – public interest in determination and enforcement of the standards prescribed by the Australian Consumer Law

Legislation: Competition and Consumer Act 2010 (Cth), sch 2, ss 18, 21, 29(1), 224, 239, 232, 246(2) Corporations Act 2001 (Cth), ss 471B, 500 Higher Education Support Act 2003 (Cth), sch 1A, cl 26

Cases cited: Australian Competition and Consumer Commission v Goldy Motors Pty Ltd [2000] FCA 1885; (2001) ATPR 41-801 Australian Competition and Consumer Commission v Leahy (No. 2) [2005] FCA 254; (2005) 215 ALR 281 Australian Competition and Consumer Commission v Link Solutions Pty Ltd [2008] FCA 1790; (2008) 68 ACSR 561 Australian Competition and Consumer Commission v Pacific Dunlop Limited [2001] FCA 740; (2001) ATPR 41-823 Australian Competition and Consumer Commission v Phoenix Institute of Australia Pty Ltd (Subject to Deed of Company Arrangement) [2016] FCA 1246; (2016) 116 ACSR 353 Australian Competition and Consumer Commission v SIP Australia Pty Limited [2003] FCA 336; (2003) ATPR 41-937 Commonwealth v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 326 ALR 476 Katingal Pty Limited v Amor [1999] FCA 317; (1999) 162 ALR 287 Meehan v Stockmans Australian Cafe (Holdings) Pty Ltd (1996) 22 ACSR 123 Rushleigh Services Pty Ltd v Forge Group Ltd (In Liq) [2016] FCA 1471 Secretary, Department of Health and Ageing v Prime Nature Prize Pty Ltd (in liq) [2010] FCA 597 Trade Practices Commission v CSR Ltd (1991) ATPR 41–076 Vagrand Pty Ltd (In liq) v Fielding (1993) 41 FCR 550