Taheri v Vitek [2014] NSWCA 209

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Taheri v Vitek [2014] NSWCA 209 Hearing dates: 28 May 2014 Decision date: 01 July 2014 Before: Bathurst CJ at [1]; Emmett JA at [2]; Leeming JA at [38] Decision: 1. Appeals dismissed, with costs.

2. Notice of motion dated 20 May 2014, dismissed with costs. Catchwords: EQUITY - rescission for fraudulent representation - compromise of litigation induced by fraudulent representation in affidavit - test for causation - whether substantial restitutio in integrum possible where separate settlement by representor and other parties not set aside

PRINCIPAL AND AGENT - power of attorney under Conveyancing Act 1919 (NSW) s163B - whether agent had authority to enter contract on behalf of principal which was to agent's benefit and not to principal's benefit - actual authority - apparent authority - ratification

STATUTORY CONSTRUCTION - "on behalf of" - relevance of style of legislative drafting - relevance of literal meaning and structure of section - relevance of Law Reform Commission report Legislation Cited: Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW), ss 151, 159, 163B Interpretation Act 1987 (NSW), s 33 Powers of Attorney Act 2003 (NSW), ss 6(3), 7, 9, 52, Schedule 1 Cases Cited: Alati v Kruger (1955) 94 CLR 216 Barton v Armstrong [1976] AC 104 BP Exploration Operating Co Ltd v Chevron Transport (Scotland) [2001] UKHL 50; [2003] 1 AC 197 Clauss v Pir [1988] Ch 267 Cooke v Wilson (1856) 140 ER 65 Curtis v Perth & Fremantle Bottle Exchange Co Ltd (1914) 18 CLR 17 Day v Day [2013] EWCA Civ 280; [2014] Ch 114 Demetrios v Gikas Dry Cleaning Industries Pty Ltd (1991) 22 NSWLR 561 Dimitrovski v Australian Executor Trustees Ltd [2014] NSWCA 68 Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218 Gipps v Gipps [1978] 1 NSWLR 454 Gould v Vaggelas (1985) 157 CLR 215 Hambro v Burnand [1904] 2 KB 10 Harvey v Phillips (1956) 95 CLR 235 Henville v Walker [2001] HCA 52; 206 CLR 459 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Howard v Commissioner of Taxation [2014] HCA 21 Huddersfield Banking Co. Ltd v Henry Lister & Son Ltd [1895] 2 Ch 273 Hughes v Hughes [2011] NSWSC 729 King v Jones (1972) 128 CLR 221 Leybourne v Permanent Custodians Ltd [2010] NSWCA 78 Macquarie Generation v Peabody Resources [2000] NSWCA 361; [2001] Aust Contract Reports 90-121 McLaughlin v City Bank of Sydney (1912) 14 CLR 6 Morris v Kanssen [1946] AC 459 Newcrest Mining Ltd v Thornton [2012] HCA 60; 248 CLR 555 Perochinsky v Kirschner [2013] NSWSC 400; 16 BPR 31,481 Pickering v Busk (1812) 15 East 38 at 43; 104 ER 758 Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28; 194 CLR 355 Re Baden's Deed Trusts (No 2) [1973] Ch 9 at 13 Reckitt v Barnett, Pembroke & Slater Ltd [1928] 2 KB 244 Re lmperial Mercantile Credit Association; Williams' case (1869) 9 LR Eq 225n Spies v Commonwealth Bank of Australia (1991) 24 NSWLR 691 Spina v Conran Associates Pty Ltd [2008] NSWSC 326; 13 BPR 25,435 Spina v Permanent Custodians Ltd [2008] NSWSC 561; 13 BPR 25,463 Tobin v Broadbent (1947) 75 CLR 378 Toubia v Schwenke [2002] NSWCA 34; 54 NSWLR 46 Texts Cited: GE Dal Pont, Powers of Attorney (2011, LexisNexis Butterworths) Category: Principal judgment Parties: Veeda Taheri (Appellant) Peter Vitek (First Respondent) Shoshana Vitek (Second Respondent) Representation: Counsel: B Walker SC with M Sneddon (Appellant) D Pritchard SC with B Zipser (Respondents)