De Costi Seafoods (Franchises) Pty Limited and Anor v Wachtenheim and Anor (No 3) [2013] NSWDC 54

District Court New South Wales

Medium Neutral Citation: De Costi Seafoods (Franchises) Pty Limited and Anor v Wachtenheim and Anor (No 3) [2013] NSWDC 54 Hearing dates: 12-15, 18-22, 25-29 June; 2-6, 9-13, 16-20, 23-27, 30, 31 July; 1-3, 6-10, 13-17, 20-24, 27-31 August; 3-7, 10-14, 24-26 September; 2-5, 8-11 October 2012 Decision date: 03 May 2013 Jurisdiction: Civil Before: P Taylor SC DCJ Decision: 1. Judgment in favour of the first, second, fourth, fifth and seventh cross-defendants on the cross-claim. 2. Otherwise dismiss the cross-claim. 3. Remove the stay operating on the plaintiffs' judgment. 4. Order the cross-claimants to pay the first, second, fourth, fifth and seventh cross-defendants' costs of the cross-claim. 5. Grant liberty to the parties to apply within 28 days to vary the costs order in order 4, or to seek any further order in respect of costs. Catchwords: MISLEADING CONDUCT - oral representations - unconscionable conduct - purchase of business - reliance - damages - implied terms - breach of contract Legislation Cited: Evidence Act 1995, s 97 Trade Practices Act 1974 (Cth), s 51A, s 84 Cases Cited: Ackers v Austcorp International Ltd [2009] FCA 432 Astram Financial Services Pty Ltd v Bank of Queensland Ltd [2010] FCA 1010 Attorney-General (NSW) v World Best Holdings Ltd (2005) 63 NSWLR 557 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51 Australian Competition and Consumer Commission v Oceana Commercial Pty Ltd [2003] FCA 1516 Australian Competition and Consumer Commission v Top Snack Goods Pty Ltd (1999) ATPR 41-708 Awad v Twin Creek Properties Pty Ltd [2012] NSWCA 200 BBB Constructions v Aldi Foods [2010] NSWSC 1352 Bennett v Elysium Noosa Pty Ltd (in liq) [2012] FCA 211 Blomley v Ryan (1956) 99 CLR 362 BP Refinery Western Port v Shire of Hastings (1977) 180 CLR 266 Briginshaw v Briginshaw (1938) 60 CLR 336 Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60, (2004) 218 CLR 592 Codelfa Constructions Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Commercial Bank of Australia Ltd v Amadio (1993) 151 CLR 447 Cordan Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 Cut Price Deli Pty Ltd v Jaques (1994) 126 ALR 413 Dib Group Pty Ltd v Ventouris Enterprises Pty Ltd [2011] NSWCA 300 Fubilan Catering Services Ltd v Compass Group (Australia) Pty Ltd [2007] FCA 1205 General Newspapers Pty Ltd v Telstra Corp (1993) 45 FCR 164 Gould v Vaggelas (1995) 157 CLR 215 Helton v Allen (1940) 63 CLR 691 Henville v Walker (2001) 75 ALJR 1410 Jones v Dunkel (1959) 101 CLR 298 Kaytonruby Pty Ltd v Glev Franchises Pty Ltd [1998] FCA 650 Keen Mar Corp Pty Ltd v Labrador Park Shopping Centre Pty Ltd (1989) ATPR (Digest) 46-048 Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281; (1995) 131 ALR 363 Louth v Diprose (1992) 175 CLR 621 Makita (Aust) Pty Ltd v Sprowles ((2001) 52 NSWLR 705 Maxwell v Murphy (1957) 96 CLR 261 McGrath, Re; Pan Pharmaceuticals Ltd (in liq) v Australian Naturalcare Products Pty Ltd [2008] FCAFC 2 NMFM Property Pty Ltd v Citibank Ltd (2000) 107 FCR 270 North East Equity Pty Ltd v Proud Nominees Pty Ltd [2012] FCAFC 1 Pappas v Soulac Pty Ltd (1983) 50 ALR 231 Poulet Frais Pty Ltd v Silver Fox Co Pty Ltd (2005) 220 ALR 211 Sanders v Glev Franchises Pty Ltd [2002] FCA 1332 Troulis v Vamvoukakis [1998] NSWCA 237 Watson v Foxman (1995) 49 NSWLR 315 Welker v Rinehart (No 6) [2012] NSWSC 160 Category: Principal judgment Parties: De Costi Seafoods (Franchises) Pty Limited (ACN 103 324 812) (first plaintiff/first cross-defendant) De Costi Seafoods (Holdings) Pty Limited (ACN 064 186 410) (second plaintiff/fifth cross-defendant) Serge Wachtenheim (first defendant/first cross-claimant) Deist Safety Equipment Australia Pty Ltd (ACN 081 763 877) (second defendant/second cross-claimant) Frank Theodore (second cross-defendant) George Costi (fourth cross-defendant) Androulla Costi (seventh cross-defendant) Representation: Mr S J Stanton with Mr M B Holmes (plaintiffs/first, second, fourth, fifth and seventh cross-defendants) Mr R Newell (defendants/cross-claimants) McLachlan Thorpe (plaintiffs/first, second, fourth, fifth and seventh cross-defendants) LC Muriniti & Associates (defendants/cross-claimants) File Number(s): 2006/296319 Publication restriction: No