Doppstadt Australia Pty Ltd v Lovick & Son Developments Pty Ltd [2014] NSWCA 158

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Doppstadt Australia Pty Ltd v Lovick & Son Developments Pty Ltd [2014] NSWCA 158 Hearing dates: 29 - 30 October 2013 and 17 December 2013 (on the papers) Decision date: 21 May 2014 Before: Ward JA at [1]; Emmett JA at [2]; Gleeson JA at [18] Decision: 1. Appeal allowed in part. 2. Cross-appeal allowed in part. 3. Vary orders 1 and 2 made by the primary judge on 27 February 2013 by amending the reference to "the plaintiffs" to read "the second plaintiff" and by inserting the figure of "$216,424.32" in place of "$254,468.80". 4. Set aside order 2 made by the primary judge on 18 April 2013 in respect of the amount of interest on the judgment from 1 March 2005 to 27 February 2013. 5. Direct the parties to agree upon and provide to the Court the calculation of interest required by order 2 made on 27 February 2013, as varied, by order 3 above. 6. Vary order 6 made by the primary on 27 February 2013 by inserting the words "s 101(4)" in place of "s 100". 7. The respondents' notice of motion filed 14 November 2013 be dismissed with costs. 8. Direct the parties to file within 14 days agreed short minutes of order giving effect to these reasons. 9. In default of agreement: (a) the appellants file and serve within 14 days proposed short minutes of order, together with brief written submissions in support; (b) the respondents file and serve within a further 14 days their proposed short minutes of order, together with brief written submissions in support. [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: COSTS - Challenge to costs orders - ss98, 100, 101 Civil Procedure Act 2005 - Failure to demonstrate House v R error in exercise of discretion DAMAGES - General Principles - Mitigation of Damages - Plaintiff's duty to mitigate - Whether there was a failure to mitigate or causation of loss on the part of the respondent - Onus of proof - Relevance of respondents' conduct to their claim for lost profits - Whether the Court erred in reducing awardable damages DAMAGES - General Principles - Part VIA Trade Practices Act 1974 and Part 4 Civil Liability Act 2002 - Proportionate Liability - Concurrent Wrongdoers - Apportionable Claim - Whether a duty of care was owed - Legislation only applies if civil liability arose before 26 July 2004 DAMAGES - Calculation of Damages - Loss of Profits Claim EVIDENCE - General - Whether failure to call witness and to tender certain documents should have given rise to a Jones v Dunkel inference - Whether the inferences for which the respondents contended should have been treated with greater reserve - Principles in Payne v Parker PROCEDURE - Application to adduce additional evidence and make further submissions - s 75A Supreme Court Act 1970 TRADE AND COMMERCE - Consumer Protection - Misleading or Deceptive Conduct - s 52 Trade Practices Act 1974 and s 42 Fair Trading Act 1987 - Whether particular representations made by the appellants were misleading and deceptive - Whether evidentiary hurdle has been satisfied TRADE AND COMMERCE - Consumer Protection - Representations as to future matters - s51A Trade Practices Act 1974 and s41 Fair Trading Act 1987 - Impact of the legislation upon legal or evidential onus of proof - Where representor denies making the representation but also contends reasonable grounds exist - Principles in Sykes v Reserve Bank of Australia - Establishing actual belief on the part of the representor - Distinction between circumstances where the representor is an individual or a corporation Legislation Cited: Civil Liability Act 2002 ss 3B(3), 34, 35, Schedule 1 Part 4 Civil Liability Amendment Act 2003 Schedule 1 Civil Liability Amendment (Personal Responsibility) Act 2002 Schedule 1 Pt 3 Civil Liability Amendment (Proportionate Liability) Regulation 2004 cl 3 Civil Liability Regulation 2009 reg 5 Civil Procedure Act 2005 ss 98, 100, 101 Corporations Act 2001 ss 1453, 1466 Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 Schedule 3 Fair Trading Act 1987 ss 41, 42 Supreme Court Act 1970 s 75A Trade Practices Act 1974 ss 51A, 52, 75B, 82, 87CD Uniform Civil Procedure Rules r 42.34, Cases Cited: Akins v National Australia Bank (1994) 34 NSWLR 155 Allied Pastoral Holdings Pty Ltd v Commissioner of Taxation [1983] 1 NSWLR 1 Apand Pty Ltd v Kettle Chip Co Pty Ltd (1994) 52 FCR 474 Bale & Anor v Mills [2011] NSWCA 226 Bibby Financial Services Australia Pty Ltd v Sharma [2014] NSWCA 37 Bill Acceptance Corporation Ltd v GWA Ltd [1982] FCA 269; 78 FLR 171 Brandi v Mingot (1976) 12 ALR 551 Browne v Dunn (1893) 6 R. 67 City of Botany Bay Council v Jazabas Pty Ltd [2001] NSWCA 94 Commercial Union Assurance Company of Australia Ltd v Ferrcom (1991) 22 NSWLR 389 Coulton v Holcombe [1968] HCA 33; 162 CLR 1 Cummings v Lewis (1993) 41 FCR 559 Daniels v Anderson (1995) 37 NSWLR 438 Dib Group Pty Ltd v Ventouris Enterprises Pty Ltd [2011] NSWCA 300 Digi-Tech (Australia) Ltd v Brand [2004] NSWCA 58; 62 IPR 184 Downey v Carlson Hotels Asia Pacific Pty Ltd [2005] QCA 199 Drummond and Rosen Pty Ltd v Easey & Ors (No 2) [2009] NSWCA 331 Earle v Castlemaine District Hospital [1974] VR 722 General Newspapers Pty Ltd v Telstra Corporation [1993] FCA 473; 45 FCR 164 Harrison v Schipp [2002] NSWCA 78; 54 NSWLR 612 House v R [1936] HCA 40; 55 CLR 499 HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd [2004] HCA 54; 217 CLR 640 Hutchinson v Equititour Pty Ltd [2011] 2 QD R 99 Illawarra Hotel Co Pty Ltd v Walton Construction Pty Ltd (No 2) [2013] NSWCA 211; 84 NSWLR 436 Jazabas Pty Ltd v City of Botany Bay Council [2002] HCATrans 131 Jones v Dunkel [1959] HCA 8; 101 CLR 298 Kalls Enterprises Pty Ltd (in liq) & Ors v Baloglow & Anor (No 3) [2007] NSWCA 298 Karacominakis v Big Country Developments Pty Ltd [2000] NSWCA 313; 10 BPR 18,735 Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; 243 CLR 361 Lahoud v Lahoud [2006] NSWCA 126 Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor [2012] NSWSC 529 Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor (No 2) [2012] NSWSC 1579 Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor (No 3) [2013] NSWSC 135 Metwally v University of Wollongong [1985] HCA 28; 60 ALR 68 MSPR Pty Ltd v Advanced Braking Technology Ltd [2013] NSWCA 416 Origin Energy LPG Ltd v Bestcare Foods Ltd [2007] NSWCA 321 Origin Energy LPG Ltd v BestCare Foods Ltd [2013] NSWCA 90 Payne v Parker [1976] 1 NSWLR 191 Potts v Miller [1940] HCA 43; 64 CLR 282 Re McGrath; Pan Pharmaceuticals Ltd (in liq) v Australian Naturalcare Products Pty Ltd [2008] FCAFC 2; 165 FCR 230 Robb Evans of Robb Evans & Associates v European Bank Ltd (No 2) [2009] NSWCA 170 Ronchi v Portland Smelter Services Ltd [2005] VSCA 83 Sanders v Glev Franchises Pty Ltd [2002] FCA 1332 Sellars v Adelaide Petroleum NL [1994] HCA 4; 179 CLR 332 Sykes v Reserve Bank of Australia (1998) 88 FCR 511 Trade Right (NSW) v Bank of Queensland [2014] NSWSC 55 West v Mead [2003] NSWSC 161 Willett v Thomas [2012] NSWCA 97 Texts Cited: D Byrne and J D Heydon, Cross on Evidence (Australian loose-leaf edition, Butterworths) at [1215] Category: Principal judgment Parties: Doppstadt Australia Pty Ltd (First appellant) Raymond John Davis (Second appellant) Lovick & Son Developments Pty Ltd (First respondent) Lovick Engineering Pty Ltd (Second respondent) Representation: Counsel: C C Hodgekiss SC with H Woods (Appellants) I Pike SC with D A Lloyd (Respondents) Solicitors: Michael Flaherty (Appellants) Campbell Paton & Taylor (Respondents) File Number(s): 2013/87009 Decision under appeal Jurisdiction: 9111 Citation: Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor [2012] NSWSC 529 Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor (No 2) [2012] NSWSC 1579 Lovick & Son Developments Pty Ltd & Anor v Doppstadt Australia Pty Ltd & Anor (No 3) [2013] NSWSC 135 Date of Decision: 2012-05-21 00:00:00 Before: Slattery J File Number(s): 2006/255184