Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35 Hearing dates: 4-5 December 2023 Date of orders: 22 February 2024 Decision date: 22 February 2024 Before: Bell CJ at [1]; Stern JA at [203]; Basten AJA at [204] Decision: 1. Appeal allowed in part with respect to the First Respondent, Karla Patricia Pichardo. 2. Set aside orders 9 and 10 entered on 14 February 2023 so far as they refer to the First Respondent. 3. In lieu thereof, order that the First Respondent pay the Appellants amounts totalling $1,090,000 together with interest from the date of payments by the Appellants to DCA Sydney Enterprises Pty Ltd calculated in accordance with the rates provided under s 100 of the Civil Procedure Act 2005 (NSW). 4. Order that the First Respondent pay the Appellants an amount of $30,000 by way of exemplary damages. 5. Order that the First Respondent be jointly liable with the Second Respondent in respect of the Appellants' costs of the cross-claim before the primary judge. 6. Order that the First Respondent pay the Appellants' costs of the appeal. Catchwords: CONSUMER LAW — misleading and deceptive conduct — whether Chief Financial Officer of small proprietary company was a mere conduit of misrepresentations — causation CONSUMER LAW — misleading and deceptive conduct — knowing involvement — requisite degree of knowledge TORTS — deceit — exemplary damages Legislation Cited: Competition and Consumer Act 2010 (Cth) sch 2 – Australian Consumer Law ss 2, 18, 236 Civil Procedure Act 2005 (NSW) s 100 Evidence Act 1995 (NSW) s 140 Trade Practices Act 1974 (Cth) s 52 Cases Cited: Anchorage Capital Master Offshore Ltd v Sparkes (2023) 111 NSWLR 304; [2023] NSWCA 88 Australian Competition and Consumer Commission v SensaSlim Australia Pty Ltd (in liq) (No 5) [2014] FCA 340; (2014) 98 ACSR 347 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Australian Securities and Investments Commission v Narain (2008) 169 FCR 211; [2008] FCAFC 120 Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200 Benlist Pty Ltd v Olivetti Australia Pty Ltd (1990) ATPR 41-043 Borzi Smythe Pty Ltd v Campbell Holdings (NSW) Pty Ltd [2008] NSWCA 233 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 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 CH Real Estate Pty Ltd v Jainran Pty Ltd [2010] NSWCA 37 Crouch v Bloody Mary Group Pty Ltd [2020] SASC 68 Dartberg Pty Ltd v Wealthcare Financial Planning Pty Ltd (No 2) [2009] FCA 1153; (2009) 74 ACSR 373 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31; [1993] ATPR 41-203 Demetrios v Gikas Dry Cleaning Industries Pty Ltd (1991) 22 NSWLR 561 Fabcot Pty Ltd v Port Macquarie-Hastings Council [2011] NSWCA 167 Gipps v Gipps [1978] 1 NSWLR 454 Google Inc v Australian Competition and Consumer Commission (2013) 249 CLR 435; [2013] HCA 1 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 Granitigard Pty Ltd v Termicide Pest Control Pty Ltd [2011] FCAFC 81; (2011) 281 ALR 1 Harris v Digital Pulse Pty Ltd (2003) 56 NSWLR 298; [2003] NSWCA 10 Havyn Pty Ltd v Webster [2005] NSWCA 182 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Hill v James [2004] NSWSC 55 Holmes v Jones (1907) 4 CLR 1692; [1907] HCA 35 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109; [2002] HCA 41 James v Hill [2004] NSWCA 301 Johnson Tiles Pty Ltd v Esso Australia Ltd (2000) 104 FCR 564; [2000] FCA 1572 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563; [1995] HCA 68 Magill v Magill (2006) 226 CLR 551; [2006] HCA 51 Medical Benefits Fund of Australia Ltd v Cassidy (2003) 135 FCR 1; [2003] FCAFC 289 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357; [2010] HCA 31 Musca v Astle Corporation Pty Ltd (1988) 80 ALR 251; [1988] ATPR 40-855 Nadinic v Drinkwater [2020] NSWCA 2 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191; [1982] HCA 44 Richard v Gendore Enterprises Pty Ltd [2004] NSWCA 116 Rookes v Barnard [1964] 1 All ER 367 State of NSW v Ibbett [2005] NSWCA 445 Sutton v AJ Thompson Pty Ltd (in liq) (1987) 73 ALR 233 Trade Practices Commission v Manfal (No 3) (1991) 33 FCR 382; (1991) 105 ALR 520 Volunteer Eco Students Abroad Pty Ltd v Reach Out Volunteers Pty Ltd [2013] FCA 731; (2013) 102 IPR 161 Wormald v Maradaca Pty Ltd [2020] NSWCA 289 XL Petroleum (NSW) Pty Ltd v Caltex Oil (Australia) Pty Ltd (1985) 155 CLR 448; [1985] HCA 12 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Texts Cited: Colin Lockhart, The Law of Misleading or Deceptive Conduct (5th ed, 2018, LexisNexis) David Rolph et al, Balkin & Davis: Law of Torts (6th ed, 2021, LexisNexis) Category: Principal judgment Parties: Care A2 Plus Pty Ltd (First Appellant) Care A2 Australia Pty Ltd (Second Appellant) Karla Patricia Pichardo (First Respondent) Dylan Charles Azzopardi (Second Respondent) Representation: Counsel: