OSCTY Pty Limited v UFFORD HOLDINGS Pty Limited [1991] NSWCA 219

OSCTY Pty Limited vy UFFORD HOLDINGS Pty Limited

SUPREME COURT OF NEW SOUTH WALES — COURT OF APPEAL

GLEESON CJ, MAHONEY JA and HANDLEY JA 2 October 1991

[1991] NSWCA 219

Damages — General Principles — contract for sale of hotel — misleading and deceptive conduct.

Trade Practices Act - s52, s82 Gates v City Mutual Life Assurance Society Limited (1986) 160 CLR 1, considered.

Gould v Vaggelas (1985) 157 CLR 215, considered.

Gleeson CJ. This is an appeal from a decision of Mr Justice Brownie who dismissed an action for damages brought by the appellant against the respondents. The action arose out of a transaction of sale and purchase of a hotel in Oxford Street, Sydney known as the Exchange Hotel. The first respondent was the vendor of the hotel and the appellant was the purchaser. The second respondent is a director of the first respondent.

Insofar as is relevant for purposes of this appeal the action was based upon an alleged contravention by the respondents of s 52 of the Trade Practices Act. The first respondent was alleged to have engaged in misleading and deceptive conduct in relation to the sale of the hotel and the appellant, the purchaser, claimed damages pursuant to the provisions of s 82 of the Trade Practices Act.

It is unnecessary to repeat in detail the facts found by the learned trial judge. They appear in his Honour's reasons for judgment which I take it are available to be read with this judgment. It suffices for present purposes to say that, prior to the formation of the contract for the sale of the hotel, the vendor and its predecessor in title had some dealings with a statutory authority known as the Liquor Administration Board for the purpose of obtaining what was, in effect, an authorisation for use of part of the hotel premises for entertainment purposes. It is unnecessary to go into the detail of the regulatory scheme pursuant to which it was necessary for such authorisation to be sought.