Coastal Karts Pty Ltd v Bellandra Holdings Pty Ltd (No 2) [2024] FCA 41

FEDERAL COURT OF AUSTRALIA

Coastal Karts Pty Ltd v Bellandra Holdings Pty Ltd (No 2) [2024] FCA 41 File number: QUD 478 of 2019

Judgment of: THOMAS J

Date of judgment: 31 January 2024

Catchwords: CONSUMER LAW – misleading or deceptive conduct in contravention of s 18 of the Australian Consumer Law – representations made in the sale of a business – where the sale of a business was for three businesses bundled as one – whether the seller informed the buyer that the sale would be for three businesses in one – whether income figures provided were for the three businesses – where one business was removed from the sale – whether the seller informed the buyer of the financial impact of the removal of the business – whether amended financial information was provided – where some equipment inspected was not part of the sale – whether equipment was in good working order – whether equipment required significant repairs or whether repairs were improvements CONTRACT – where Vendor Finance Agreement is purported to have been validly rescinded – whether rescission valid

Legislation: Competition and Consumer Act 2010 (Cth) Federal Court of Australia Act 1976 (Cth) Trade Practices Act 1974 (Cth)

Cases cited: Australian Competition and Consumer Commission v Telstra Corporation Ltd (ACN 051 775 556) (2007) 244 ALR 470; [2007] FCA 1904 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Benlist Pty Ltd v Olivetti Australia Pty Ltd [1990] ATPR ¶41-043 Browne v Dunn (1894) 6 R. 67 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Campomar Sociedad, Limitada v Nike International Limited (2000) 202 CLR 45; [2000] HCA 12 Compaq Computer Australia Pty Ltd v Merry (1998) 157 ALR 1 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 Fencott v Muller (1983) 152 CLR 570 Fraser v NRMA Holdings Limited (1995) 55 FCR 452 General Newspapers Pty Limited v Telstra Corporation (1993) 45 FCR 164 Global Sportsman Pty Ltd v Mirror Newspapers Pty Ltd (1984) 2 FCR 82 Gould v Vaggelas (1984) 157 CLR 215 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 I & L Securities Pty Limited v HTW Valuers (Brisbane) Pty Limited (2002) 210 CLR 109; [2002] HCA 41 Jewelsnloo Pty Ltd v Sengos [2016] NSWCA 309 Julstar Pty Ltd v Hart Trading Pty Ltd [2014] FCAFC 151 Keen Mar Corporation Pty Ltd v Labrador Park Shopping Centre Pty Ltd (1989) 67 LGRA 238 Kimberley NZI Finance Ltd v Torero Pty Ltd (unreported, Federal Court of Australia, French J, 27 July 1989) Lam v Ausintel Investments Australia Pty Ltd (1989) 97 FLR 458 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357; [2010] HCA 31 MWJ v The Queen (2005) 222 ALR 436; [2005] HCA 74 Parkdale Custom Built Furniture v Puxu Pty Ltd (1982) 149 CLR 191 Poseidon Ltd v Adelaide Petroleum NL (1991) 105 ALR 25 Qantas Airways Ltd v Transport Workers' Union of Australia (2011) 280 ALR 503; [2011] FCA 470 Quinlivan v Australian Competition and Consumer Commission (2004) 160 FCR 1; [2004] FCAFC 175 R v Tannous (1987) 10 NSWLR 303 Stern v National Australia Bank Ltd (2000) 171 ALR 192; [2000] FCA 294 Trade Practices Commission v Australia Meat Holdings Pty Ltd (1988) 83 ALR 299 Travel Compensation Fund v Tambree (2005) 224 CLR 627; [2005] HCA 69 Wardley Australia Limited v The State of Western Australia (1992) 175 CLR 514 Watson v Foxman (1995) 49 NSWLR 315 Yorke v Lucas (1985) 158 CLR 661