Zong v Wang [2022] NSWCA 80

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Zong v Wang [2022] NSWCA 80 Hearing dates: 14 March 2022 Date of orders: 1 June 2022 Decision date: 01 June 2022 Before: Leeming JA at [1]; White JA at [2]; Brereton JA at [3]. Decision: Dismiss the appeal with costs against both appellants. Catchwords: CONSUMER LAW – Misleading or deceptive conduct – Whether conduct is "in trade or commerce" – Requirement that conduct is commercial in character – No requirement of an extant commercial operation – Negotiations may be commercial even though the setting is social CONSUMER LAW – Misleading or deceptive conduct – Whether primary judge erroneously considered effect of unpleaded or unproven representations – Held that other representations may be contextually relevant to meaning and effect of pleaded representations CONSUMER LAW – Misleading or deceptive conduct – Remedies – Damages – Where shares acquired because of misleading representations – Whether loss should be measured by reference to residual value of shares at date of transaction or at date of hearing – Held appropriate to use date of hearing where deterioration of value inherent and not caused by supervening events, or where purchaser "locked in" to business Legislation Cited: Competition and Consumer Act 2010 (Cth), Schedule 2, Australian Consumer Law (Cth), ss 18, 236, 237, 243 Cases Cited: Butcher 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 Como Investments Pty Ltd (In Liq) v Yenald Nominees Pty Ltd [1997] FCA 12; 19 ATPR 41-550 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd (2004) 217 CLR 640; [2004] HCA 54 I and L Securities v HTW Valuers (2002) 210 CLR 109; [2002] HCA 41 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Market Ltd (2008) 73 NSWLR 653; [2008] NSWCA 2 Kizbeau Pty Ltd v WG&B Pty Ltd (1995) 184 CLR 281; [1995] HCA 4 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191; [1982] HCA 44 Ricochet Pty Ltd v Equity Trustees Executors & Agency Co Ltd [1993] FCA 9; (1993) 41 FCR 229 Smith New Court Securities Ltd v Scrimgeour Vickers (Asset Management) Ltd [1997] AC 254; (1996) 22 ACSR 656 Wyzenbeek v Australasian Marine Imports Pty Ltd (In Liq) [2019] FCAFC 167; (2019) 272 FCR 373 Taylor v Crossman (No 2) [2012] FCAFC 11; (2012) 199 FCR 363 Texts Cited: W Lonergan, The Valuation of Businesses, Shares and Other Equity, 4th ed (2003) Category: Principal judgment Parties: Jason Zong (first appellant) Australian Yacht Club Pty Ltd (second appellant) Zhengshun Wang (respondent) Representation: Counsel: MW Young SC (appellants) NE Furlan (respondent)