Westpac Banking Corporation v Lee [2013] NSWCA 375

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Westpac Banking Corporation v Lee [2013] NSWCA 375 Hearing dates: 12 June 2013 Decision date: 11 November 2013 Before: Barrett JA at [1]; Emmett JA at [4]; Gleeson JA at [44] Decision: 1. The appeal be dismissed. 2. The appellants to pay the respondents' costs. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: MISLEADING OR DECEPTIVE CONDUCT - financial services - s 12DA Australian Securities and Investment Commission Act 2001 (Cth) - where respondents had not read the documents provided by the appellants in relation to a complex financial product - where strong reservations on credit had been expressed - whether respondents were led into error by the appellants in relation to the capital protection feature - whether the appellants caused the respondents' loss - where post-facto evidence relied upon Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BAA, 12 BAB, 12DA, 12DB Corporations Act 2001 (Cth) ss 708, 761G(4), 761G(7), 944A, 946A Corporations Regulation r 6D 2.03 Uniform Civil Procedure Rules 2005 51.36(2) Cases Cited: Browne v Dunn (1893) 6 R 67 Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; 218 CLR 592 Campbell v Backoffice Investments Pty Ltd [2009] HCA 25; 238 CLR 304 Campomar Sociedad, Limitada v Nike International Ltd [2000] HCA 12; 202 CLR 45 Commonwealth Bank of Australia v Mehta (1991) 23 NSWLR 84 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 Fox v Percy [2003] HCA 22; 214 CLR 118 Henville v Walker [2001] HCA 52; 206 CLR 459 I&L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd [2002] HCA 41; 210 CLR 109 Johnson Tiles Pty Ltd v Esso Australia Ltd [2000] FCA 1572; 104 FCA 564 Jones v Dunkel [1959] HCA 8; 101 CLR 298 Manly Council v Byrne [2004] NSWCA 123 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd [2010] HCA 31; 241 CLR 357 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd [1982] HCA 44; 149 CLR 191 Payne v Parker [1976] 1 NSWLR 191 Schellenberg v Tunnel Holdings Pty Ltd [2000] HCA 18; 200 CLR 121 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Oxford English Dictionary, 3rd ed (2000) Category: Principal judgment Parties: Westpac Banking Corporation (First Appellant) BT Funds Management Corporation Limited (Second Appellant) BT Funds Management No 2 Limited (Third Appellant) Michael Lee and Majed Hawatt (First Respondents) Sandstone Constructions Pty Limited (Second Respondent) Representation: Counsel: K C Morgan (Appellants) D A McLure (Respondents) Solicitors: King and Wood Mallesons (Appellants) Kennedys (Respondents) File Number(s): CA 2012/298009 Decision under appeal Citation: [2012] NSWSC 899 Date of Decision: 2012-08-09 00:00:00 Before: Harrison AsJ File Number(s): 2009/297860