Mills v Walsh [2022] NSWCA 255

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Mills v Walsh [2022] NSWCA 255 Hearing dates: 6, 7 September 2022 Date of orders: 8 December 2022 Decision date: 08 December 2022 Before: Bell CJ at [1]; White JA at [2]; Brereton JA at [39] Decision: (1) Dismiss the appeal. (2) Order that the appellant pay the first respondent's costs of the appeal. (3) Direct the parties that any application for costs by or in respect of the second respondent should be made by written submission, accompanied by any evidence, lodged and served within 14 days. Catchwords: CONSUMER LAW – Misleading or deceptive conduct – Contract for residential renovation works – Representation by silence that construction company was licensed to undertake works – Whether primary judge erred in finding future form of pleaded representation made out – "No transaction" case – Requirement of plaintiff to prove its loss – Price paid minus value of benefits received – Source of value in construction contract – Where partially renovated property subsequently demolished and rebuilt – Effect of circumstance that builder was unlicensed CONTRACT – Identification of parties where no written contract in place – Whether construction company or its principal party to residential construction contract Legislation Cited: Competition and Consumer Act 2010 (NSW) Schedule 2, Australian Consumer Law, ss 4, 18, 236 Civil Procedure Act 2000 (NSW), s 100 Evidence Act 1995 (NSW), s 135 Home Building Act 1989 (NSW), ss 3, 4, 5, 18B, 94 Trade Practices Act 1974 (Cth), ss 52, 53, 82 Cases Cited: ACCC v Woolworths [2019] FCA 1039 ADC v White [2001] NSWCA 9 Admiralty Commissioners v SS Chekiang [1926] AC 637 Allergan Australia Pty Ltd v Self Care IP Holdings Pty Ltd [2020] FCA 1530 Bartier Perry Pty Ltd v Paltos [2021] NSWCA 158 BP Exploration Co (Libya) Ltd v Hunt (No 2) [1979] 1 WLR 783 Benedetti v Sawiris [2014] AC 938; [2013] UKSC 50 Boncristiano v Lohmann [1998] 4 VR 82 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; (2001) 117 FCR 424 Brenner v First Artists' Management Pty Ltd (1993) 2 VR 221 Bryanston Finance Ltd v de Vries [1975] QB 703 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Canavan v Wright [1957] NZLR 790 Chappel v Hart (1998) 195 CLR 232; [1998] HCA 55 Chevron North America (The) [2002] 1 Lloyds Rep 77 Clark v Urquhart [1930] AC 28 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Dadourian Group International Inc v Simms [2009] 1 Lloyds Rep 601 Digi-tech (Aust) Ltd v Brand [2004] NSWCA 58; (2004) ATPR 46-248 Downs v Chappell [1997] 1 WLR 426 Doyle v Olby (Ironmongers) Ltd [1969] 2 QB 158 East v Mauerer [1991] 1 WLR 461 EK Nominees Pty Ltd v Woolworths Ltd [2006] NSWSC 1172 Ford Motor Co of Australia Ltd v Arrowcrest Group Pty Ltd [2003] FCAFC 313; (2003) 134 FCR 522 Gagner Pty Ltd trading as Indochine Cafe v Canturi Corporation Pty Ltd [2009] NSWCA 413 Gates v City Mutual Life Assurance Society Limited (1986) 160 CLR 1; [1986] HCA 3 Harold R Finger & Co v Karellas Investments Pty Ltd [2015] NSWSC 354 Hellyer Drilling Co v MacDonald Hamilton & Co Pty Ltd (1983) 51 ALR 177; [1983] FCA 283 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 Janssen-Cilag Pty Ltd v Pfizer Pty Ltd [1992] FCA 437; (1992) 37 FCR 526 JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 Kizbeau Pty Ltd v WG&B Pty Ltd (1995) 184 CLR 281; [1995] HCA 4 Mallett v Jones [1959] VR 122 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 McAllister v Richmond Brewing Co (NSW) Pty Ltd (1942) 42 SR (NSW) 187 McGrath; in the matter of Pan Pharmaceuticals Ltd (in liq) v Aust Natural Care Products Pty Ltd [2008] FCAFC 2; (2008) 165 FCR 230 Murphy v Overton Investments Pty Ltd (2004) 216 CLR 388; [2004] HCA 3 Monroe Schneider Associates (Inc) v No 1 Raberem Pty Ltd [1991] FCA 592; (1991) 33 FCR 1 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; [1987] HCA 5 Pethybridge v Stedikas Holdings Pty Ltd [2007] NSWCA 154 Pitcher Partners Consulting Pty Ltd v Neville's Bus Service Pty Ltd [2019] FCAFC 119; (2019) 271 FCR 392 Potts v Miller (1940) 64 CLR 282; [1940] HCA 43 Rainbow Industrial Caterers Ltd v Canadian National Rly Co [1991] 3 SCR 3 Rapid Roofing Pty Ltd v Natalise Pty Ltd [2007] QCA 904 RG Maxwell & Associates Pty Ltd v Warner (1990) ATPR (Digest) 46-062 Ruthol Pty Ltd v Tricon (Australia) Pty Ltd [2005] NSWCA 443 Smith New Court Securities Ltd v Scrimgeour Vickers (Asset Management) Ltd [1997] AC 254; [1996] 3 WLR 1051 The World Beauty [1970] P 144 (CA) Ted Brown Quarries Pty Ltd v General Quarries (Gilston) Pty Ltd (1977) 138 CLR 645; 16 ALR 23 Toteff v Antonas (1952) 87 CLR 647; [1952] HCA 16 Townsend v Stone Toms and Partners (1984) 27 BLR 26 Travel Compensation Fund v Tambree (2005) 224 CLR 627; [2005] HCA 69 Tyco Australia Pty Ltd v Optus Networks Pty Ltd [2004] NSWCA 333 United Motor Finance Co v Addison & Co Ltd [1937] 1 All ER 425 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514; [1992] HCA 55 Westpac Banking Corporation v Bell Group Ltd (in liq) (No 3) [2012] WASCA 157; (2012) 44 WAR 1 Yam Seng Pte Ltd v International Trade Corporation Ltd [2013] 1 Lloyds Rep 526 Zhang and Mills v JSW Property Projects Pty Ltd [2021] NSWDC 655 Zong v Wang [2022] NSWCA 80 Texts Cited: Arrowsmith, S, Ineffective Transactions, Unjust Enrichment and Problems of Policy (1989) 9 Legal Studies 121 Burrows, A, Essays on the Law of Restitution (1991) Edelman, The Hon J, McGregor on Damages, 21st ed (2021) Edelman, the Hon J and Bant, E, Unjust Enrichment, 2nd ed (2016) Handley, the Hon KR, Spencer Bower & Handley, Actionable Misrepresentation, 5th ed (2014) Category: Principal judgment Parties: David Mills (Appellant) Haiden Walsh (First Respondent) Crystal Zhang (Second Respondent) Representation: Counsel: