R.T. & Y.E. Falls Investments Pty Ltd v. The State of New South Wales and Ors [2001] NSWSC 1027

New South Wales Supreme Court

CITATION : R.T. & Y.E. Falls Investments Pty Ltd v. The State of New South Wales and Ors [2001] NSWSC 1027 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 4422/93 HEARING DATE(S) : 25 to 28 September and 3 & 5 October, 2001 JUDGMENT DATE : 15 November 2001

R.T. & Y.E Falls Investments Pty Ltd [Plaintiff] PARTIES : The State of New South Wales [First Defendant] Deniliquin and Moulamein Rural Lands Protection Board [Second Defendant] Dan Salmon [Third Defendant] JUDGMENT OF : Palmer J

COUNSEL : P.T. Taylor [Plaintiff] T.H. Barrett [Defendants] SOLICITORS : Taylor & Whitty [Plaintiff] State Crown Solicitors Office [Defendants] CATCHWORDS : CONTRACT - INFORMAL CONTRACT - Whether concluded agreement comprised by facsimile and conversations - significant commercial transaction involved - whether parties evidenced common intention to be bound prior to formal contract - principles discussed - as a general rule, Court should be reluctant to find informal contract where parties negotiating substantial commercial transaction in contemplation of formal contract. - FAIR TRADING ACT - GOVERNMENT DEPARTMENT - BUSINESS - Whether NSW Department of Agriculture carrying on a business in paying compensation to cattle owners under Cattle Compensation Act, 1951 - principles discussed - Department relevantly carrying on a business to the extent it was engaging in an activity in which a private trader would engage. - FAIR TRADING ACT - REPRESENTATION - Whether representation involving express or implied statements as to present circumstances excludes representation being "with respect to" a future matter - expression of presently held opinion as to what is likely to happen is representation "with respect to" a future matter within s.41 FTA. - DAMAGES - ECONOMIC LOSS - Loss of sales of stud cattle - whether additional compensation payable for loss to value of Plaintiff's business - principles discussed. - NEGLIGENCE - DUTY OF CARE - Government Department aware of possible impending change of policy - Department keeps possible change secret from field officers dealing with persons foreseeably likely to suffer loss by reason of misleading information - whether Government Department has duty of care - whether field officer has independent duty of care - whether both Department and field officer have breached duty of care. - WORDS AND PHRASES - "Representation with respect to any future matter" - s.41(1) FTA. Cattle Compensation Act, 1951 (NSW) - s.3, s.7 Commonwealth Fair Trading Act LEGISLATION CITED : Conveyancing Act, 1919 (NSW) - s.54A Fair Trading Act, 1987 (NSW) - s.3, s.4, s.42 Supreme Court Act, 1970 - s.94 - ABC v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 - Air Great Lakes Pty Ltd v K.S. Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 - Bakewell v Deputy Federal Commissioner of Taxation (S.A.) (1937) 58 CLR 743 - Baulkham Hills Private Hospital Pty Ltd v G.R. Securities Pty Ltd (1986) 40 NSWLR 622, on appeal, ibid 631 - G.R. Securities Pty Ltd v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 - Branca v Cobarro [1947] KB 854 - Clifton v Palumbo [1944] 2 All ER 497 - The Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 - Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 169 CLR 594 - Corrections Corporation of Australia Pty Ltd v Commonwealth (2000) ATPR 41?787 (Finkelstein J) - Easts Van Villages v Minister Administering the National Parks & Wildlife Act [2001] NSWSC 559 (Matthews AJ) - Fasold v Roberts (1997) ATPR 41-561 (Sackville J.) - Filby v Hounsell (1896) 2 Ch 737 - Film Bars Pty Ltd v Pacific Film Laboratories Pty Ltd (1979) 1 BPR 9251 CASES CITED : - Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1 - Global Sportsmen Pty Ltd v Mirror Newspapers Pty Ltd (1984) 2 FCR 82 - Godecke v Kirwan (1973) 129 CLR 629 - Jones v Schiffman (1971) 124 CLR 303 - Re Ku-ring-gai Co-operative Building Society (No.12) Ltd (1978) 36 FLR 134 - J.S. McMillan Pty Ltd v Commonwealth (1997) 77 FCR 337 (Emmett J.) - Masters v Cameron 91 CLR 353 - Niesmann v Collingridge (1920) 29 CLR 177 - Norman v Federal Commissioner of Taxation (1963) 109 CLR 9 - Paramedical Services Pty Ltd v The Ambulance Service of New South Wales [1999] FCA 548 (Hely J.) - Perre v Apand Pty Ltd (1999) 198 CLR 180 - Plimer v Roberts (1997) 80 FCR 303 - Rossiter v Miller (1878) 3 App Cas 1124 - B. Seppelt & Sons Ltd v Commissioner for Main Roads [1975] 1 BPR 9147 - Sinclair, Scott & Co Ltd v Naughton (1929) 43 CLR 310 - Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387 DECISION : No informal contract found; First Defendant liable to Plaintiff for misleading conduct under FTA and in negligence; Third Defendant not liable to Plaintiff in negligence.