Yorke v Lucas [1985] HCA 65

High Court of Australia Mason A.C.J. Wilson, Brennan, Deane and Dawson JJ. Yorke v Lucas [1985] HCA 65

ORDER Appeal dismissed with costs.

Cur. adv. vult.

The following written judgments were delivered:—

Oct. 3 Mason A.C.J., Wilson, Deane and Dawson JJ.

The respondent, Ross Melville Lucas ("Lucas"), was the managing director of a company, Ross Lucas Pty. Ltd. ("the Lucas company") which carried on business in South Australia as a licensed land and business agent. It acted for Treasureway Stores Pty. Ltd. ("Treasureway") in the sale of that company's business to the appellants.

Arising out of the sale of the business, the appellants claimed damages in the Federal Court under s. 82 of the Trade Practices Act 1974 Cth against Treasureway, Kevin Thomas Mahoney who was a director of Treasureway, the Lucas company and Lucas. The basis of the claim was a contravention of s. 52 of the Act. That section prohibits a corporation from, in trade or commerce, engaging in conduct that is misleading or deceptive or is likely to mislead or deceive. Section 82 allows a person who suffers loss or damage by conduct of another person that was done in contravention of, amongst other provisions, s. 52, to recover the amount of the loss or damage against that other person or against "any person involved in the contravention". Lucas is said by the appellants to be involved in the contravention of s. 52 and they rely upon s. 75B of the Act, which provides that a reference to a person involved in a contravention shall be read as a reference to a person who—

(a) has aided, abetted, counselled or procured the contravention;

(b) has induced, whether by threats or promises or otherwise, the contravention;

(c) has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention; or