Armstrong Strategic Management and Marketing Pty Limited v Expense Reduction Analysts Group Pty Ltd (No 9) [2016] NSWSC 1005

Supreme Court New South Wales

Medium Neutral Citation: Armstrong Strategic Management and Marketing Pty Limited v Expense Reduction Analysts Group Pty Ltd (No 9) [2016] NSWSC 1005 Hearing dates: 2 to 4, 7 to 11, 14 to 18, 21 to 24, 29 to 31 March, 4 to 6, 8 and 14 April 2016, 30 and 31 May 2016 Decision date: 22 July 2016 Before: Ball J Decision: Proceedings dismissed. Catchwords: TRADE PRACTICES – misleading and deceptive conduct – whether representations made during the course of negotiations for an agreement concerning terms to be included in the agreement was misleading or deceptive EQUITY – whether fiduciary relationship exists in connection with the negotiation of a commercial agreement CONTRACTS – general contractual principles – construction and interpretation of contracts – prior agreement inconsistent with existence of entire agreement clause EQUITY – estoppel – lack of relevant detriment CONTRACTS – termination of contract – whether party in breach of contract entitled to terminate it for breach or repudiation by the other party – whether terminating party entitled to claim damages TRADE PRACTICES – unconscionability – operation of s 51AC TPA DAMAGES – pre-contractual representations – difference in damages where a transaction occurs as against a 'no transaction' case Legislation Cited: Corporations Act 2001 (Cth) Fair Trading Act 1987 (NSW) Fair Trading Act 1985 (Vic) Judiciary Act 1903 (Cth) Trade Practices Act 1974 (Cth) Trade Practices Amendment (Cartel Conduct and Other Measures) Act 2009 (Cth) Cases Cited: ACCC v Allphones Retail Pty Ltd (No 2) [2009] FCA 17; (2009) 253 ALR 324 ACCC v Oceana Commercial Pty Ltd [2004] FCAFC 174 Australian Competition & Consumer Commission v Universal Sports Challenge Ltd [2002] FCA 1276 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Bunge SA v Nidera BV [2015] UKSC 43 Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 Campbell v Backoffice Investments Pty Ltd [2009] HCA 25; (2009) 238 CLR 304 Civoken Pty Ltd v Madden Grove Developments Pty Ltd [2006] VSC 283 Commissioner of Taxation of Commonwealth of Australia v St Helens Farm (ACT) Pty Limited [1981] HCA4; (1981) 146 CLR 336 Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54; (1992) 174 CLR 64 at [4] per Deane J Cook Straight Skyferry Ltd v Dennis Thompson International Limited [1993] 2 NZLR 72 Craftsmen Restoration & Renovations Pty Ltd v Boland [2011] NSWCA 147 Dib Group Pty Ltd v Ventouris Enterprises Pty Ltd [2011] NSWCA 300; (2011) 284 ALR 601 Emhill Pty Ltd v Bonsoc Pty Ltd (No 2) [2007] VSCA 108 Fabcot Pty Ltd v Port Macquarie-Hastings Council [2011] NSWCA 167 Fink v Fink [`946] HCA 54; (1946) 74 CLR 127 Geraldton Building Co Pty Ltd v Christmas Island Resort Pty Ltd (1992) 11 WAR 40 Golden Strait Corporation v Nippon Yusen Kubishika Kaisha (The Golden Victory) [2007] 2 AC 353 Highmist Pty Ltd v Tricare Ltd [2005] QCA 357 Hospital Products Limited v United States Surgical Corporation [1984] HCS 64; (1984) 156 CLR 41 Howe v Teefy (1927) 27 SR (NSW) 301 IOOF Australia Trustees (NSW) Ltd v Tantipech [1998] FCA 924; (1998) 156 ALR 470 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd [2007] HCA 61; (2007) 233 CLR 115 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd [1989] HCA 23; (1989) 166 CLR 623 LMI Australasia Pty Ltd v Baulderstone Hornibrook Pty Limited [2003] NSWCA 74 McCrohon v Harith [2010] NSWCA 67 Mad Dogs Pty Ltd (in liq) v Gilligan's Backpackers Hotel & Resort Pty Ltd (No 3) [2015] QSC 319 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 Nina's Bar Bistro Pty Ltd v MBE Corporation (Sydney) Pty Ltd [1984] 3 NSWLR 613 North East Equity Pty Ltd v Proud Nominees Pty Ltd [2010] FCAFC 60; (2010) 269 ALR 262 Ridgeway Maritime Inc v Beulah Wings Limited (The Leon) [1991] 2 Lloyd's Rep 611 Roadshow Entertainment Pty Ltd v (ACN 053 006 269) Pty Ltd (Rec and Mgr apptd) (1997) 42 NSWLR 462 Shevill v Builders' Licensing Board [1982] HCA 47; (1982) 149 CLR 620 State Trading Corporation of India Ltd v Golodetz Ltd [1989] 2 Lloyd's Rep 279 Streetscape Projects (Australia) Pty Ltd v City of Sydney [2013] NSWCA 2; (2013) 295 ALR 760 Sunbird Plaza Pty Ltd v Maloney [1988] HCA 11; (1988) 166 CLR 245 Suttor v Gundowda Pty Ltd [1950] HCA 35; (1950) 81 CLR 418 Sykes v Reserve Bank of Australia (1998) 88 FCR 511; (1998) 158 ALR 710 Tonto Home Loans Australia Pty Ltd v Tavares [2011] NSWCA 389; (2011) 15 BPR 29,699 Tsaprazis v Goldcrest Properties Pty Ltd [2000] NSWSC 206; (2000) 18 ACLC 285 Traderight (NSW) Pty Ltd v Bank of Queensland Ltd [2015] NSWCA 94 United Dominions Corporation Ltd v Brian Pty Ltd [1985] HCA 49; (1985) 157 CLR 1 Texts Cited: N C Seddon and M P Ellinghaus, Chesire & Fifoot's Law of Contract (8th ed, 2002) Category: Principal judgment Parties: Armstrong Strategic Management and Marketing Pty Limited (ACN 005 709 928) (First Plaintiff) Armstrong Consulting Pty Ltd (ACN 073 762 940) (Second Plaintiff) Kenneth Alan Armstrong (Third Plaintiff) Expense Reduction Analysts Group Pty Ltd (ACN 008 852 926) (First Defendant) ERA Insurance Services Pty Ltd (ACN 109 873 010) (Second Defendant) Expense Reduction Analysts Australasia Pty Ltd (ACN 095 591 665) (Third Defendant) Stuart Roy Michael (Fourth Defendant) Ronald Clucas (Fifth Defendant) Charles Frederick Marfleet (Sixth Defendant) ERAGICS Limited (Seventh Defendant) Expense Reduction Analysts International Limited (Eighth Defendant) Keith John Chapman (Ninth Defendant) Anthony Frederick Dormer (Tenth Defendant) Representation: Counsel: