Crowley v Worley Limited (No 2) [2023] FCA 1613

FEDERAL COURT OF AUSTRALIA

Crowley v Worley Limited (No 2) [2023] FCA 1613 File number: NSD 1292 of 2015

Judgment of: JACKMAN J

Date of judgment: 19 December 2023

Catchwords: CORPORATIONS – representative proceedings – where listed company made announcements as to earnings expectations – whether representations constituted misleading or deceptive conduct – whether there was a reasonable basis for making the representations as to expectations of future earnings – attribution of knowledge to a corporation – whether breach of continuous disclosure obligations – contraventions established DAMAGES – whether group members suffered loss applying market-based causation – active indirect causation in relation to purchase of securities – primary counterfactual not made out – where there is no economic correspondence or equivalence – causation and loss not established HIGH COURT AND FEDERAL COURT – principles on remitter for further hearing and determination – extent to which findings of the primary judge disturbed on appeal – circumstances in which remitter judge bound by findings of appellate court and primary judge

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BB, 12DA, 12GF Competition and Consumer Act 2010 (Cth) Sch 2 (Australian Consumer Law), ss 4, 18, 236 Corporations Act 2001 (Cth) ss 9, 9AD, 674, 1041H, 1041I, 1317HA Federal Court of Australia Act 1976 (Cth) Pt IVA, s 28

Cases cited: Aristocrat Technologies Australia Pty Ltd v DAP Services (Kempsey) Pty Ltd [2007] FCA 40; (2007) 157 FCR 564 Australian Securities and Investments Commission v King [2020] HCA 4; (2020) 270 CLR 1 Australian Securities and Investments Commission v M101 Nominees Pty Ltd (in liq) (No 6) [2023] FCA 1276 Berry v CCL Secure Pty Ltd [2020] HCA 27; (2020) 271 CLR 151 Biggin & Co Ltd v Permanite Ltd [1951] 1KB 422 Blatch v Archer (1774) 98 ER 969 Braham v ACN 101 482 580 Pty Ltd [2020] VSCA 108 Browne v Dunn (1893) 6 R 67 Campbell v Backoffice Investments Pty Ltd [2009] HCA 25; (2009) 238 CLR 304 City of Botany Bay Council v Jazabas Pty Ltd [2001] NSWCA 94 Comcare v Martin [2016] HCA 43; (2016) 258 CLR 467 Community and Public Sector Union v Telstra Corp Ltd (No 2) [2001] FCA 479; (2001) 112 FCR 324 Crowley v Worley Limited [2020] FCA 1522 Crowley v Worley Limited [2022] FCAFC 33; (2022) 293 FCR 438 Crowley v WorleyParsons Limited (No 2) [2019] FCA 1535 Enzed Holdings Ltd v Wynthea Pty Ltd [1984] FCA 373; (1984) 57 ALR 167 Fernando v Commonwealth [2014] FCAFC 181; (2014) 231 FCR 251 Fox v Percy (2003) 214 CLR 118 Harvard Nominees Pty Ltd v Nicoletti [2022] FCAFC 179 Harvard Nominees Pty Ltd v Tiller (No 4) [2022] FCA 105; (2022) 403 ALR 498 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd [2004] HCA 54; (2004) 217 CLR 640 Jones v Dunkel (1959) 101 CLR 298 Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; (2011) 243 CLR 361 Masters v Lombe (in his capacity as liquidator of Babcock & Brown Limited) (in liq) [2021] FCAFC 161; (2021) 392 ALR 326 Morley v Australian Securities and Investments Commission [2010] NSWCA 331; (2010) 274 ALR 205; (2010) 81 ACSR 285 New Aim Pty Ltd v Leung (No 3) [2023] FCA 1295 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10; (2003) 196 ALR 257 Re DCA Enterprises Pty Ltd [2023] NSWSC 11; (2023) 166 ACSR 156 Re HIH Insurance Ltd (in liq) [2016] NSWSC 482; (2016) 335 ALR 320 Re Mediation & Online Dispute Resolution Operating Network Pty Ltd [2022] NSWSC 5 Roufeil v Tarrant Enterprises Pty Ltd [2023] FCAFC 142 Sagacious Legal Pty Ltd v Wesfarmers General Insurance Ltd [2011] FCAFC 53 Shafron v Australian Securities and Investments Commission [2012] HCA 18; (2012) 247 CLR 465 Sykes v Reserve Bank of Australia (1998) 88 FCR 511 Ted Brown Quarries Pty Ltd v General Quarries (Gilston) Pty Ltd (1977) 16 ALR 23 TPT Patrol Pty Ltd as trustee for Amies Superannuation Fund v Myer Holdings Ltd [2019] FCA 1747; (2019) 293 FCR 29