Ng v Chan [2020] NSWSC 954

Supreme Court New South Wales

Medium Neutral Citation: Ng v Chan [2020] NSWSC 954 Hearing dates: 25, 26 & 29 July and 18 September 2019 Date of orders: 27 July 2020 Decision date: 27 July 2020 Jurisdiction: Equity Before: Slattery J Decision: Misleading and deceptive conduct made out. Fraud found. Damages awarded to the plaintiff. Defendant ordered to pay the plaintiff's costs. Catchwords: CONTRACTS – Misrepresentation – Fraudulent misrepresentation – the plaintiff paid the defendant two tranches of payments to acquire shares in an incorporated law firm – the law firm has since ceased to conduct practice due to the intervention of the Law Society of NSW – the plaintiff alleges the total of both tranches was $430,000 and the defendant argues it was only $300,000 – the plaintiff alleges he was induced to make both tranches through fraudulent, misleading and deceptive conduct by the defendant and an intermediary – the plaintiff seeks relief that the defendant repay the $430,000 purchase price of the shares – the defendant argues that he did not misrepresent the law firm's prospects and the intermediary was not his agent. Legislation Cited: Australian Securities and Investment Commission Act 2001 (Cth), ss 12BB, 12DA, 12GF Civil Procedure Act 2005, s 100 Evidence Act 1995, s 140 Cases Cited: Cargill Australia Ltd v Viterra Malt Pty Ltd (No. 9) [2018] VSC 433 Flexirent Capital Pty Ltd v EBS Consulting Pty Ltd & Ors (2007) 14 ANZ Ins Cas 61-732 Fox v Percy (2003) 214 CLR 118 Gould v Vaggelas (1985) 157 CLR 215 Haynes v Top Slice Deli Pty Ltd (1995) ATPR (Digest) 46-147 Jones v Dunkel (1959) 101 CLR 298 Neat Holdings Pty Limited v Karajan Holdings Pty Ltd (1992) 110 ALR 449 Perpetual Trustees Australia Limited v Schmidt & Anor [2010] VSC 67 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Peter G. Watts, F.M.B. Reynolds, Bowstead and Reynolds Law on Agency, (21st edition, 2019, Sweet & Maxwell Ltd, UK) GE Dal Pont, The Law of Agency (3rd ed, 2013, LexisNexis Butterworths) Category: Principal judgment Parties: Plaintiff: Cedric Ng Defendant: Josh Chan Representation: Counsel: Plaintiff: A. Coombes Defendant: G.D. McDonald