Jonval Builders Pty Ltd v Commissioner for Fair Trading [2020] NSWCA 233

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Jonval Builders Pty Ltd v Commissioner for Fair Trading [2020] NSWCA 233 Hearing dates: 10 August 2020 Decision date: 25 September 2020 Before: Bathurst CJ at [1]; Meagher JA at [2]; Leeming JA at [3]. Decision: 1. Appeal dismissed, with costs. 2. Notice of motion filed 17 July 2020 dismissed, with costs. 3. Pursuant to the slip rule in UCPR r 36.17, vary order 3 made on 17 March 2020 by replacing "second and third" by "first and second". Catchwords: CONSUMER LAW - enforcement and remedies - compensation orders - proceedings brought by Commissioner on behalf of consumers - consumers purchased moveable dwellings and entered into occupation agreements with respondents - appellants represented that terms of agreements preventing permanent residence would not be enforced - permanent residence precluded by development consent - no challenge to findings of misleading or deceptive conduct and unconscionable conduct by corporate appellants - whether primary judge erred in making orders requiring payment of purchase price 85% of cost of improvements plus interest on terms that consumers reconvey title to moveable homes - whether need to quantify loss or damage before power to make orders under s 72 of Fair Trading Act or s 237 of Australian Consumer Law available - consideration of distinction between such orders and damages - consideration of relationship between such orders and orders for rescission in equity for fraudulent representation - whether primary judge erred in finding unconscionable conduct by director of corporate appellants - appeal dismissed Legislation Cited: Australian Consumer Law, ss 18, 236, 237 Fair Trading Act 1987 (NSW), ss 42, 72, Sch 5, cl 16 Trade Practices Act 1974 (Cth), s 87 Cases Cited: Addenbrooke Pty Ltd v Duncan (No 2) [2017] FCAFC 76; 348 ALR 1 Alati v Kruger (1955) 94 CLR 216; [1955] HCA 64 Australian Competition and Consumer Commission v Medibank Private Ltd (2018) 267 FCR 544; [2018] FCAFC 235 Australian Securities and Investments Commission v Kobelt [2019] HCA 18; 93 ALJR 743 Biogen Inc v Medeva plc [1997] RPC 1; [1996] UKHL 18 Brown v Smitt (1924) 34 CLR 160; [1924] HCA 11 Cheese v Thomas [1994] 1 WLR 129 Chen v Ng (British Virgin Islands) [2017] UKPC 27 Commissioner for Fair Trading v Jonval Builders Pty Ltd [2019] NSWSC 1893 Cummins Generator Technologies Germany GMBH v Johnson Controls Australia Pty Ltd [2015] NSWCA 264; 326 ALR 556 Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218 GIO Australia Holdings Ltd v Marks (1996) 70 FCR 559 Ipstar Australia Pty Ltd v APS Satellite Pty Ltd [2018] NSWCA 15; 356 ALR 440 JAD International Pty Ltd v International Trucks Australia Ltd (1994) 50 FCR 378 Jams 2 Pty Ltd v Stubbings [2020] VSCA 200 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 Masterton Homes Pty Ltd v LED Builders Pty Ltd (1996) 33 IPR 417 McAllister v Richmond Brewing Co (NSW) Pty Ltd (1942) 42 SR (NSW) 187 Munchies Management Pty Ltd v Belperio (1988) 58 FCR 274 Murphy v Overton Investments Pty Ltd (2004) 216 CLR 388; [2004] HCA 3 Nadinic v Drinkwater (2017) 94 NSWLR 518; [2017] NSWCA 114 Newbigging v Adam (1886) 34 Ch D 582 Park v Murray Irrigation Ltd [2018] NSWCA 166 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10; 77 ALJR 768 PT Ltd v Spuds Surf Chatswood Pty Ltd [2013] NSWCA 446 Sibley v Grosvenor (1916) 21 CLR 469; [1916] HCA 14 Westpac Banking Corporation v Jamieson [2016] 1 Qd R 495; [2015] QCA 50 Wyzenbeek v Australasian Marine Imports Pty Ltd (in liq) (2019) 272 FCR 373; [2019] FCAFC 167 Category: Principal judgment Parties: Jonval Builders Pty Ltd (First Appellant) Hacienda Caravan Park Pty Ltd (Second Appellant) John Allan Willmott (Third Appellant) Commissioner for Fair Trading (Respondent) Representation: Counsel: M Stewart QC, L Jurth (Appellants) G Kennett SC, R Francois, S Jayasuriya (Respondent)