Travel Compensation Fund v Fry [2002] NSWSC 1044

Reported Decision : (2003) ATPR (Digest) 46-227

New South Wales Supreme Court

CITATION : Travel Compensation Fund v Fry [2002] NSWSC 1044 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 3295/99 HEARING DATE(S) : 26, 27, 28 February, 1, 4, 5, 6, 7, 8, 19 & 20 March 2002 JUDGMENT DATE : 8 November 2002

Travel Compensation Fund (P) Renee Julie Fry (D1) PARTIES : Trevor Fry (D2) Robyn Joan Fry (D3) Robert Tambree t/as R Tambree & Associates (D4) Phillip Roseby t/as P J Roseby & Co (D5) JUDGMENT OF : Austin J

Mr N F Francey (P) COUNSEL : In person (D1, D2) Mr P B Walsh (D4) Mr R E Dubler (D5) McCabe Terrill (P) SOLICITORS : Burston Cole & Co (D4) Phillips Fox (D5) CATCHWORDS : TRADE PRACTICES - Fair Trading Act - misleading and deceptive conduct in trade and commerce - financial information provided in application for participation in Travel Compensation Fund and in applications for renewal of participation - whether misleading or deceptive - whether Fund's loss through meeting compensation claims recoverable against licensed travel agent, a person involved in the misrepresentations, an accountant and an auditor - causation - NEGLIGENCE - negligent misstatements by accountant and auditor - reliance and causation - TRAVEL AGENTS - Fund's right of subrogation under Travel Agents Act - right of recovery against travel agent through subrogation to claimants' rights LEGISLATION CITED : Fair Trading Act 1987 (NSW) ss 42, 61, 68 Travel Agents Act 1986 ss 6, 11, 40, 57 Argy v Blunts Lane Cove Real Estate Pty Ltd (1990) 26 FCR 112 Attorney-General for the Commonwealth v Breckler (1999) 197 CLR 83 Cowan v Scargill [1985] 1 Ch 270 Dundee General Hospitals Board of Management v Walker [1952] 1 All ER 896 Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241 Gardam v George Wills & Co Ltd (1988) 82 ALR 415 Gisborne v Gisborne (1877) 2 App Cas 300 Howden v Travel Compensation Fund [1997] FCA 1166 Karger v Paul [1984] VR 161 CASES CITED : Lock v Westpac Banking Corporation (1991) 25 NSWLR 593 Lutheran Church of Australia v Farmers' Co-operative Executors & Trustees Ltd (1970) 121 CLR 628 March v E & MH Stramare Pty Ltd (1991) 171 CLR 506 Parkes Management Ltd v Perpetual Trustee Co Ltd (1997) 10 ACLR 303 Pauling's Settlement Trust [1964] Ch 303 Re Baden's Deed Trusts [1971] AC 424 Re Londonderry's Settlement [1965] Ch 916 Saints Gallery Pty Ltd v Plummer (1988) 80 ALR 525 Travel Compensation Fund v Travel Guide Pty Ltd (1997) 72 FCR 371 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Yorke v Lucas (1985) 158 CLR 661 DECISION : See under heading "Conclusions"