Zhang v Peng [2023] NSWDC 448

District Court New South Wales

Medium Neutral Citation: Zhang v Peng [2023] NSWDC 448 Hearing dates: 3-6 April, 14, 16 June and 28 July 2023 Date of orders: 27 October 2023 Decision date: 27 October 2023 Jurisdiction: Civil Before: Gibson DCJ Decision: (1) Judgment for the plaintiff for $96,716. (2) Costs and interest reserved, with liberty to apply. (3) Exhibits retained until further order. Catchwords: CONSUMER LAW – applications pursuant to ss 12DA and 12DB of the Australian Securities and Investments Commission Act 2001 (Cth) or, in the alternative, s 18 of the Australian Consumer Law, and for negligent misrepresentation – defendant asserted to have misled plaintiff by representations about the desirability of investing in a complex and unregulated investment scheme, both orally and subsequently in WeChat posts - whether representations made – whether made in trade or commerce – whether investment scheme a financial product – whether representations conduct in relation to financial services – whether misleading or deceptive, or false or misleading – causation issues - whether representations negligent – whether duty of care owed – whether duty of care breached – quantum Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth), ss 12BB, 12DA, 12DB, 12GF Competition and Consumer Act 2010 (Cth), s 131A; Sch 2 - Australian Consumer Law, ss 4, 18, 235, 236 Civil Liability Act 2002 (NSW), s 5D Cases Cited: Anchorage Capital Master Offshore Ltd v Sparkes [2023] NSWCA 88 Briess v Woolley [1954] AC 333 Butcher v Lachlan Elder Realty Pty Limited (2004) 218 CLR 592; [2004] HCA 60 Commercial Banking Co of Sydney Ltd v R H Brown & Co (1972) 126 CLR 337 Gan v Xie [2023] NSWCA 163 Google Inc v Australian Competition and Consumer Commission (2013) 249 CLR 435; [2013] HCA 1 Johnson v Mackinnon (No 2) [2022] NSWCA 22 Lantrak Holdings Pty Ltd v Yammine [2023] FCAFC 156 Li v Yeung [2023] NZHC 1374 Lloyd v Grace, Smith & Co [1912] AC 716 Mackinnon as plaintiff representative of 153 plaintiff group members v Partnership of Larter, Jones, Miraleste Pty Ltd t/as USG Partner and Johnson, t/as "STC Sports Trading Club" (No 8) [2019] NSWSC 1658 Perpetual Trustee Company Ltd v Milanex Pty Ltd (in liq) [2011] NSWCA 367 Samsung Electronics v LG Electronics (2015) 113 IPR 11 Tepko Pty Ltd v Waterboard (2001) 206 CLR 1; [2001] HCA 19 Tomasetti v Brailey [2011] NSWSC 1446 Tomasetti v Brailey [2012] NSWCA 399 Tomasetti v Brailey [2013] NSWSC 1282 Wan v Ji [2022] NSWDC 269 Watson v Foxman (1995) 49 NSWLR 315 Xuan v Xu [2022] FCA 508 Texts Cited: Nil Category: Principal judgment Parties: Yajun Zhang (plaintiff) Yan Peng (defendant) Representation: Counsel: Mr B M Zipser (plaintiff) Mr S Bell (defendant)