Touch for Health Pty Ltd as Trustee for Knight Superannuation Fund v Property Mentors Australia Pty Ltd (No 3) [2024] FCA 1381

Touch for Health Pty Ltd as Trustee for Knight Superannuation Fund v Property Mentors Australia Pty Ltd (No 3) [2024] FCA 1381 File number(s):

Judgment of: NESKOVCIN J

Date of judgment: 2 December 2024

Catchwords: CORPORATIONS – failed property development – provision of Information Memorandum to the applicants – misleading or deceptive conduct – whether the representations in the Information Memorandum were misleading or deceptive or likely to mislead or deceive – reliance – whether the applicants relied on the representations in the Information Memorandum when deciding to invest – whether the applications failed to take reasonable care – apportionment of liability – principal liability – whether the second and third respondents were principally liable – accessorial liability – whether the second and third respondents were accessorily liable – knowing involvement NEGLIGENCE – duty of care – whether the respondents owed the applicants a duty of care – breach – whether the respondents breached the duty of care owed to the applicants

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 5(2), 12BAB(1), 12BB(1)–(2), 12DA(1), 12GA, 12GF(1), 12GF(1B), 12GM(1), 12GR Corporations Act 2001 (Cth) s 9

Australian Competition and Consumer Commission v TF Woollam & Son Pty Ltd (2011) 196 FCR 212; [2011] FCA 973 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; (2013) HCA 54 Australian Securities & Investments Commission v Narain (2008) 169 FCR 211; [2008] FCAFC 120 Australian Securities and Investments Commission (ASIC) v Big Star Energy Ltd (No 3) [2020] FCA 1442 Australian Securities and Investments Commission v La Trobe Financial Asset Management Ltd (2021) 158 ACSR 363; [2021] FCA 1417 Australian Securities and Investments Commission v National Australia Bank Limited (No 2) [2023] FCA 1118 Butler 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 Clark Equipment Australia Ltd v Covcat Pty Ltd (1987) 71 ALR 367; [1987] FCA 96 Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241; [1997] HCA 8 Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (No 1) (1988) 39 FCR 546; [1988] FCA 42 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Houghton v Arms (2006) 225 CLR 553; [2006] HCA 59 Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd (2013) 247 CLR 613; [2013] HCA 10 Cases cited: Janssen-Cilag Pty Ltd v Pfizer Pty Ltd (1992) 37 FCR 526 L Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (1981) 150 CLR 225; [1981] HCA 59 McGrath v HNSW Pty Limited (2015) 219 FCR 489; [2014] FCA 165 McGrath: in the matter of Pan Pharmaceutical Ltd (in liq) v Australian Naturalcare Products Pty Ltd (2008) 165 FCR 230; [2008] FCAFC 2 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 Mutual Life and Citizens Assurance Co Ltd v Evatt (1968) 122 CLR 556; [1968] HCA 74 Norcast Sarl v Bradken Ltd (No 2) (2013) 219 FCR 14; [2013] FCA 235 Pave Wealth Services Pty Ltd v Jones [2021] WASCA 7 Productivity Partners Pty Ltd v Australian Competition and Consumer Commission (2024) 98 ALJR 1021; [2024] HCA 27 Quinlivan v Australian Competition and Consumer Commission (2004) 160 FCR 1; [2004] FCAFC 175 San Sebastian Pty Ltd v The Minister Administering the Environmental Planning and Assessment Act 1979 (1986) 162 CLR 340 Self Care IP Holdings Pty Ltd v Allergan Australia Pty Ltd (2023) 277 CLR 186; [2023] HCA 8 SPAR Licensing Pty Ltd v MIS QLD Pty Ltd (2014) 314 ALR 35; [2014] FCAFC 50 Stav Investments Pty Ltd v Taylor [2022] NSWSC 208 Tepko Pty Ltd v Water Board (2001) 206 CLR 1; [2001] HCA 19 Wyzenbeek v Australian Marine Imports Pty Ltd (In Liq) (2019) 272 FCR 373