Traderight (NSW) Pty Ltd (ACN 108 880 968) & Ors v Bank Of Queensland Limited (ACN 009 656 740) (No 17) and 13 related matters [2014] NSWSC 55

Supreme Court New South Wales

Medium Neutral Citation: Traderight (NSW) Pty Ltd (ACN 108 880 968) & Ors v Bank Of Queensland Limited (ACN 009 656 740) (No 17) and 13 related matters [2014] NSWSC 55 Decision date: 13 February 2014 Jurisdiction: Equity Division Before: Ball J Decision: Each of the claims brought by the OMB Parties be dismissed. Judgment for the Bank on its claims Catchwords: TRADE PRACTICES - misleading or deceptive conduct - the operation of the Trade Practices Act 1974 (Cth) (TPA) ss 51A, 52 and 59(2) - the operation of the Fair Trading Act 1987 (NSW) (FTA) ss 41, 42 and s 54(2) - the relevance of a disclaimer in determining whether conduct was misleading or deceptive - the circumstances in which silence can be misleading or deceptive - the making of implied representations of fact - whether, on the facts of this case, the alleged implied representations were drawn by the plaintiffs - what constitutes a future matter within the meaning of the TPA s 51A and the FTA s 41 - the burden of proof under the TPA s 51A and the FTA s 41 - whether the defendant had reasonable grounds for the representations concerning a future matter within the meaning of the TPA s 51A and the FTA s 41 - the limitation period on a claim for personal injury for misleading or deceptive conduct - the application of the TPA ss 82(2) and 87E TRADE PRACTICES - unconscionability - the operation of the TPA ss 51AC - the effect of the TPA s 51AA(2) on a claim under s 51AA in circumstances where a claim is made under s 51AC - what constitutes unconscionable conduct within the meaning of the TPA s 51AC - the operation of the Franchising Code of Conduct cl 16(1) - the limitation period on a claim for unconscionable conduct - the application of the TPA s 87F TORTS - negligent misstatement - whether the defendant had a duty to take reasonable care in making representations to potential franchisees - whether the defendant had a duty of care not to express opinions unless it had reasonable grounds for doing so - whether the defendant breached that duty of care TORTS - negligent infliction of psychiatric injury - whether the defendant owed a duty of care to prevent mental illness flowing from economic loss in circumstances where the parties were in a commercial relationship - whether, in the circumstances of the case, the defendant ought to have reasonably foreseen that a person of normal fortitude would suffer a recognised psychiatric illness - whether the defendant breached that duty of care - whether the relevant plaintiffs suffered a psychiatric illness - whether that illness was caused by the defendant's conduct LIMITATION OF ACTIONS - whether the claims for personal injuries are statute barred by operation of the Limitation Act 1969 (NSW) s 50C - whether an order should be made under the Civil Procedure Act 2005 (NSW) s 65(3) EMPLOYMENT LAW - the operation of the Industrial Relations Act 1996 s 106 (IR Act) - whether the relevant plaintiffs performed work in an industry - whether the contracts or arrangements between the parties were ones whereby that work was performed - whether the contracts or arrangements were "unfair, harsh or unconscionable" within the meaning of the IR Act s 106 - whether there was a "services contract", within the meaning of the Independent Contractors Act 2006 (Cth) s 5 between the relevant plaintiffs and the defendant - whether the relevant plaintiffs entered into a contract for services as independent contractors by which they performed work CONTRACTS - the operation of the Contracts Review Act 1980 (NSW) s 7 PRACTICE AND PROCEDURE - the pleading of multiple express and implied representations - the conduct of complex litigation generally EVIDENCE - the difficulties of proof encountered in a case based on oral representations - the preparation of affidavits and pleadings - whether evidence from one plaintiff can corroborate evidence given by other plaintiffs - the operation of the rule from Browne v Dunn (1893) 6 R 67 (HL) in complex proceedings - the credit of witnesses generally Legislation Cited: Civil Liability Act 2002 (NSW) Civil Procedure Act 2005 (NSW) Contracts Review Act 1980 (NSW) Evidence Act 1995 (NSW) Fair Trading Act 1987 (NSW) Health Insurance Act 1973 (Cth) Independent Contractors Act 2006 (Cth) Industrial Arbitration Act 1940 (NSW) Industrial Relations Act 1996 (NSW) Industrial Relations Amendment Act 2005 (NSW) Judiciary Act 1903 (Cth) Limitation Act 1969 (NSW) Real Property Act 1900 (NSW) Sale of Goods Act 1923 (NSW) Trade Practices Act 1974 (Cth) (now the Competition & Consumer Act 2010) Trade Practices Amendment (Personal Injuries and Death) Act 2006 (Cth) Trade Practices (Industry Codes - Franchising) Regulations 1998 (Cth) Schedule Franchising Code of Conduct Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: ACCC v CG Berbatis Holdings Pty Ltd [2000] FCA 1376 Ace Business Brokers Pty Ltd v Phillips-Treby (2000) 100 IR 420 ACN 070 037 599 Pty Ltd v Larvik Pty Ltd [2008] QCA 416 Aneve Pty Ltd v Bank of Western Australia Ltd [2005] NSWCA 441 Anthanasopoulos v Moseley [2001] NSWCA 266; (2001) 52 NSWLR 262 ASIC v National Exchange Pty Limited [2005] FCAFC 226; (2005) 148 FCR 132 Attorney General of New South Wales v World Best Holdings Pty Ltd [2005] NSWCA 261; (2005) 63 NSWLR 557 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd [2003] HCA 18; (2003) 214 CLR 51 Australian Competition & Consumer Commission v Oceania Commercial Pty Ltd [2004] FCAFC 174 Australian Competition and Consumer Commission v Universal Sports Challenge Ltd [2002] FCA 1276 Australian Co-operative Foods Ltd v SW & JD Reilly & Sons Pty Ltd [2011] NSWCA 148 Autobake Pty Ltd v Budd (1986) 8 IPR 435 Awad v Twin Creeks Properties Pty Limited [2012] NSWCA 200 Batterham v QSR Ltd [2006] HCA 23; (2006) 225 CLR 235 BBB Constructions Pty Ltd v ALDI Foods Pty Ltd [2010] NSWSC 1352 Bennett v Elysium Noosa Pty Ltd (in liq) [2012] FCA 211; (2012) 202 FCR 72 Blomley v Ryan (1954-56) 99 CLR 362 Briginshaw v Briginshaw (1938) 60 CLR 336 Browne v Dunn (1893) 6 R 67 (HL) Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 Caltex Refineries (Qld) Pty Ltd v Stavar [2009] NSWCA 258; (2009) 75 NSWLR 649 Campbell v Backoffice Investments Pty Ltd [2009] HCA 25; (2009) 238 CLR 304 Canon Australia Pty Ltd v Patton [2007] NSWCA 246 Caterpillar of Australia Pty Ltd v Industrial Court of New South Wales [2009] NSWCA 83; (2009) 78 NSWLR Citrus Queensland Pty Ltd v Sunstate Orchards Pty Ltd (No 7) [2008] FCA 1364 City of Botany Bay Council v Jazabas Pty Limited (ACN 060 105 053) [2001] NSWCA 94 Civoken Pty Ltd v Madden Grove Developments Pty Ltd [2006] VSC 283 Cooke v R & M Reurich Holdings Pty Ltd [2004] NSWCA 268 Damberg v Damberg (2001) 52 NSWLR 492 Demagogue v Ramensky (1992) 39 FCR 31 Dib Group Pty Ltd v Ventouris Enterprises Pty Ltd [2011] NSWCA 300; (2011) 284 ALR 601 Digi-Tech (Australia) Ltd v Brand [2004] NSWCA 58 Fish v Solution 6 Holdings Limited [2006] HCA 22; (2006) 225 CLR 180 Fubilan Catering Services Limited v Compass Group (Australia) Pty Ltd [2007] FCA 1205 Hollis v Vabu Pty Ltd [2001] HCA 44; (2001) 207 CLR 21 Hurley v McDonald's Australia Ltd [1999] FCA 1728 IOOF Australia Trustees (NSW) Ltd v Tantipech [1998] FCA 924; (1998) 156 ALR 470 Jones v Dunkel (1959) 101 CLR 298 Jupiters Ltd v UAERJ Pty Ltd [2013] NSWSC 1469 Kakavas v Crown Melbourne Limited [2013] HCA 25; (2013) 87 ALJR 708 Ketchell v Master of Education Services Pty Ltd [2007] NSWCA 161 Lewarne v Momentum Productions Pty Ltd [2007] FCA 1136 Louth v Diprose [1992] HCA 61; (1992) 175 CLR 621 McGrath, Re Pan Pharmaceuticals Ltd (in liq) v Australian Naturalcare Products Pty Ltd [2008] FCAFC 2; (2008) 165 FCR 230 Mayne Nickless Ltd v Industrial Relations Commission of New South Wales [2004] NSWCA 359 Miba Pty Ltd v Nescor Industries Group Pty Ltd (1996) 141 ALR 525 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd [2010] HCA 31; (2010) 241 CLR 357 MSPR Pty Ltd v Advanced Braking Technology Ltd [2013] NSWCA 416 North East Equity Pty Ltd v Proud Nominees Pty Ltd [2010] FCAFC 60 Old UGC Inc v Industrial Relations Commission of NSW in Court Session [2006] HCA 24; (2006) 225 CLR 274 Perre v Apand Pty Ltd [1999] HCA 36; (1999) 198 CLR 180 Robberds v Turner Franchising & Allied Services Pty Ltd [2005] NSW IRComm 321 Stevens v Brodribb Sawmilling Company Pty Ltd (1986) 160 CLR 16 Sullivan v Moody [2001] HCA 59; (2001) 207 CLR 562 Sutherland Shire Council v Heyman [1985] HCA 41; (1985) 157 CLR 424 Sykes v Reserve Bank of Australia (1998) 88 FCR 511 Tame v New South Wales [2002] HCA 35; (2002) 211 CLR 317 Thomas v SMP (International) Pty Ltd (No 4) [2010] NSWSC 984 Ting v Blanche (1993) 118 ALR 543 Traderight Pty Ltd v Bank of Queensland (No 3) [2010] NSWSC 139; (2010) 266 ALR 503 Traderight (NSW) Pty Ltd & Ors v Bank of Queensland Limited (No 7) [2011] NSWSC 1265 Traderight (NSW) Pty Ltd v Bank of Queensland (No 10) [2012] NSWSC 1181 Traderight (NSW) Pty Ltd (ACN 108 880 968) v Bank Of Queensland Limited (ACN 009 656 740) (No 12) [2012] NSWSC 1363 Watson v Foxman (1995) 49 NSWLR 315 Wicks v State Rail Authority of New South Wales [2010] HCA 22; (2010) 241 CLR 60 Willett v Thomas [2012] NSWCA 97 Texts Cited: J D Heydon, Cross on Evidence, LexisNexis, 8th Aust ed, 2010 Category: Principal judgment Parties: Traderight (NSW) Pty Ltd (ACN 108 880 968) (First Plaintiff in 06/258216; First Defendant in 06/258225) Bronwyn Smith (Second Plaintiff in 06/258216; Second Defendant in 06/258225) Geoffrey Versace (Third Plaintiff in 06/258216; Third Defendant in 06/258225) Smith Partners Developments Pty Ltd (Fourth Plaintiff in 06/258216; Fourth Defendant in 06/258225) Verich Holdings Pty Ltd (Fifth Plaintiff in 06/258216; Fifth Defendant in 06/258225) Bank of Queensland Limited (ACN 009 656 740) (Defendant in 06/258216; Plaintiff in 06/258225; First Defendant/Cross Claimant in 08/282126; First Defendant in 09/287816; First Defendant/Cross Claimant in 08/282304; First Defendant in 09/287824; Defendant/Cross Claimant in 10/367117; Defendant/Cross-Claimant in 08/281332; Plaintiff/First Cross Defendant in 08/279848; First Defendant in 09/287814; Defendant/Cross Claimant in 10/367086; Defendant/Cross Claimant in 10/305568; Defendant/Cross Claimant in 10/306022; Defendant/Cross Claimant in 10/304306) Rossmick No 1 Pty Limited (First Plaintiff/First Cross Defendant in 08/282126; First Plaintiff in 09/287816) Rossmick No 2 Pty Limited (Second Plaintiff/Second Cross Defendant in 08/282126; Second Plaintiff in 09/287816) Michael Bradley (Third Plaintiff/Third Cross Defendant in 08/282126; Third Plaintiff in 09/287816) Ross Chapman (Fourth Plaintiff/Fourth Cross Defendant in 08/282126; Fourth Plaintiff in 09/287816) Luke Nolan (Fifth Plaintiff/Fifth Cross Defendant in 08/282126; Fifth Plaintiff in 09/287816) Tomala No 1 Pty Ltd (ACN 110 321 698) (Sixth Plaintiff/Sixth Cross Defendant in 08/282126; Sixth Plaintiff in 09/287816) Casmick Pty Ltd (ACN 110 292 012) (Seventh Plaintiff/Seventh Cross Defendant in 08/282126; Seventh Plaintiff in 09/287816) Nolan No 1 Pty Ltd (ACN 110 019 426) (Eighth Plaintiff/Eighth Cross Defendant in 08/282126; Eighth Plaintiff in 09/287816) Nadine Nolan (Ninth Plaintiff/Ninth Cross Defendant in 08/282126; Ninth Plaintiff in 09/287816) David Liddy (Second Defendant in 08/282126; Second Defendant in 09/287816; Second Defendant in 09/287824; Second Cross Defendant in 08/279848; Second Defendant in 09/287814) Jude Financial Services Pty Ltd (ACN 115 763 481) (First Plaintiff/First Cross Defendant in 08/282304; First Plaintiff in 09/287824) Russell Jude Edward Gardner (Second Plaintiff/Second Cross Defendant in 08/282304; Second Plaintiff in 09/287824) Penelope Ann Gardner (Third Plaintiff/Third Cross Defendant in 08/282304; Third Plaintiff in 09/287824) Donna Quinn (Third Defendant in 08/282126; Third Defendant in 09/287816; Fourth Defendant in 09/287824) Garry Allsop (Fourth Defendant in 09/287816; Fourth Defendant in 08/282126; Fourth Defendant in 09/287816; Third Defendant in 09/287824; Third Cross Defendant in 08/279848) Shamarbre Pty Ltd (First Plaintiff/First Cross Defendant in 10/367117) Ronald George Johnson (Second Plaintiff/Second Cross Defendant in 10/367117) Geraghty & Palmer (NSW) Pty Ltd (First Plaintiff/First Cross Defendant in 08/281332) Shauna Margaret Geraghty (Second Plaintiff/Second Cross Defendant in 08/281332) Barry Palmer (Third Plaintiff/Third Cross Defendant in 08/281332) SME Business Assist Pty Limited (ACN 108 524 232) (First Defendant/First Cross Claimant in 08/279848; First Plaintiff in 09/287814) Scott Rolfe McCoy (Second Defendant/Second Cross Claimant in 08/279848; Second Plaintiff in 09/287814) Leokate Pty Ltd (ACN 111 162 068) (First Plaintiff/First Cross Defendant in 10/367086) Stephen Sargent (Second Plaintiff/Second Cross Defendant in 10/367086) Lauren Sargent (Third Plaintiff/Third Cross Defendant in 10/367086) Best Deal Pty Limited (ACN 119 366 433) (First Plaintiff/First Cross Defendant in 10/305568) Jeffrey Bruce Jones (Second Plaintiff/Second Cross Defendant in 10/305568) LJH Group Pty Limited (ACN 123 507 497) (First Plaintiff/First Cross Defendant in 10/306022) Leslie Xu (Second Plaintiff/Second Cross Defendant in 10/306022) Jin Yu Yang (Third Plaintiff/Third Cross Defendant in 10/306022) Southpole Financial Services Pty Ltd (ACN 123 930 012) (First Plaintiff/First Cross Defendant in 10/304306) Harunur Rashid Chowdhury (Second Plaintiff/Second Cross Defendant in 10/304306) Md Iftekhar Tarek Hassan (Third Plaintiff/Third Cross Defendant in 10/304306) Md Ikthedar Hassan Murad (Fourth Plaintiff/Fourth Cross Defendant in 10/304306) Representation: Counsel: NA Cotman SC with RD Glasson (OMB Parties) S Couper QC with JV Gooley, GAF Connolly and RM Higgins (Bank Parties) Solicitors: McCabes (OMB Parties) HWL Ebsworths (Bank Parties) File Number(s): Publication restriction: Nil