Wormald v Maradaca Pty Ltd [2020] NSWCA 289

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Wormald v Maradaca Pty Ltd [2020] NSWCA 289 Hearing dates: 02 November 2020 Date of orders: 13 November 2020 Decision date: 13 November 2020 Before: Bathurst CJ at [1]; Bell P at [2]; Payne JA at [161] Decision: (1) Appeal and cross-appeal allowed. (2) Judgments of 24 April 2020 and 8 May 2020 and the orders made on 8 May 2020 of the Court below be set aside. (3) Order that the first respondent pay the second appellant $114,639.00 and interest pursuant to s 100 of the Civil Procedure Act 2005 (NSW). (4) Order that the first respondent pay the first cross-appellant $30,289.00 and interest pursuant to s 100 of the Civil Procedure Act 2005 (NSW). (5) Order that the first respondent pay the second cross-appellant $55,072.00 and interest pursuant to s 100 of the Civil Procedure Act 2005 (NSW). (6) Order that the Further Amended Statement of Cross-Claim be dismissed with costs. (7) The first and second respondents pay the appellants' and cross-appellants' costs. Catchwords: MISLEADING OR DECEPTIVE CONDUCT – Misleading or deceptive conduct – misleading or deceptive conduct by silence - alleged non-disclosure relating to sale of shares in private company – where purchaser was an experienced commercial participant – whether primary judge erred in characterising specific representation as providing an "assurance" to the purchaser of shares in private company – whether primary judge erred in finding that the purchaser had a "reasonable expectation" that certain disclosures would be made – whether any misleading or deceptive conduct was causative of loss or damage – where as a matter of common sense causation, loss sustained was due to a calculated risk by an experienced commercial participant, and not by any alleged misleading or deceptive conduct Legislation Cited: Civil Procedure Act 2005 (NSW) s 100 Competition and Consumer Act 2010 (Cth) sch 2 – Australian Consumer Law s 18 Trade Practices Act 1974 (Cth) s 52 Cases Cited: Argy v Blunts & Lane Cove Real Estate Pty Ltd (t/as Blunts of Lane Cove) (1990) 26 FCR 112 Australia & New Zealand Banking Group Ltd v Pham [1999] VSC 503 Australian Competition and Consumer Commission v CC (NSW) Pty Ltd (No 8) (1999) 92 FCR 375; [1999] FCA 954 Banque Commerciale SA en Liquidation v Akhil Holdings Limited (1990) 169 CLR 279; [1990] HCA 11 BHP Billiton Olympic Dam Corporation Pty Ltd v Bluestone Apartments Pty Ltd (No 2) [2013] SASC 133 Boensch v Pascoe (2019) 94 ALJR 112; [2019] HCA 49 Butcher v Lachlan Elder Realty Pty Limited (2004) 218 CLR 592; [2004] HCA 60 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Dare v Pulham (1982) 148 CLR 658; [1982] HCA 70 DCT Projects Pty Limited v Champion Homes Sales Pty Limited [2016] NSWCA 117 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31; [1992] FCA 557 Des Forges v Wright [1996] 2 NZLR 758 Donne Place Pty Ltd v Conan Pty Ltd [2005] QCA 481 Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 Fabcot Pty Ltd v Port Macquarie-Hastings Council [2011] NSWCA 167 First Mineral Resources Pty Ltd v WMC Resources Ltd [2000] WASC 309 Fraser v NRMA Holdings Limited (1995) 55 FCR 452 G&M Borg P/L v New South Wales Dairy Corp [2003] NSWSC 382 Havyn Pty Ltd v Webster [2005] NSWCA 182 Hayle Holdings Pty Ltd v Australian Technology Group Ltd [2000] FCA 1242 Jewelsnloo Pty Ltd v Sengos [2016] NSWCA 309 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kizbeau Pty Ltd v WG and B Pty Ltd (1995) 184 CLR 28; [1995] HCA 4 Kuru v State of New South Wales (2008) 236 CLR 1; [2008] HCA 26 Lam v Ausintel Investments Australia Pty Ltd (1989) 97 FLR 458 Lee v Lee (2019) 266 CLR 129; [2019] HCA 28 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Limited (2010) 241 CLR 357; [2010] HCA 31 Nadinic v Cheryl Drinkwater as trustee for the Cheryl Drinkwater Trust [2020] NSWCA 2 Oscty Pty Ltd v Ufford Holdings Pty Ltd (1989) NSW ConvR 55-494 Permanent Trustee Australia Ltd v FAI General Insurance Company Ltd (in liq) (2003) 214 CLR 514; [2003] HCA 25 Poulet Frais Pty Ltd v The Silver Fox Company Pty Ltd (as trustee for the Baker Family Trust) (2005) 220 ALR 211; [2005] FCAFC 131 Rosenberg v Percival (2001) 205 CLR 434; [2001] HCA 18 Street v Luna Park Sydney Pty Ltd (2009) 223 FLR 245; [2009] NSWSC 1 Warren v Coombes (1979) 142 CLR 531; [1979] HCA 9 Watpac Constructions (NSW) Pty Limited v Charter Hall Funds Management Limited [2017] NSWSC 865 White Constructions Pty Ltd v PBS Holdings Pty Ltd [2020] NSWCA 277 Williams v Commonwealth Bank of Australia [1999] NSWCA 345 Category: Principal judgment Parties: Shaun Edmund Wormald (First Appellant) Wirra Wirra Investments Pty Ltd as trustee for the Wormald Trust (Second Appellant) Maradaca Pty Ltd (First Respondent) ELB Pty Ltd (Second Respondent) John Leonard Barrett (Third Respondent) Steven Moran (Fourth Respondent) Representation: Counsel: