Luo v Windy Hills Australian Game Meats Pty Ltd (No 3) [2019] NSWSC 862

Supreme Court New South Wales

Medium Neutral Citation: Luo v Windy Hills Australian Game Meats Pty Ltd (No 3) [2019] NSWSC 862 Hearing dates: 1 - 3, 8 - 9 and 16 May 2019, further submissions 3 & 18 June 2019 Decision date: 10 July 2019 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Plaintiffs are entitled to damages against each defendant Catchwords: CONTRACTS – breach of contract – consequences of breach – right to damages – contract for sale of goods – goods never delivered – total failure of consideration – defendant vendor defrauded by third party supplier – defendant vendor nonetheless liable to plaintiff purchaser

CONTRACTS – misleading conduct under statute – misleading or deceptive conduct – representations – defendant falsely represented it had a present ability to supply beef omasum – plaintiff paid contract sum in reliance – containers of packing salt delivered

EQUITY – trusts and trustees – resulting trusts – Quistclose trusts – no Quistclose trust established where no mutual intention that plaintiff's money would not become part of the first defendant's assets Legislation Cited: Australian Consumer Law Competition and Consumer Act 2010 (Cth) Convention on Contracts for International Sale of Goods, opened for signature 11 April 1980, 1489 UNTS 3 (entered into force 1 January 1998) Legal Profession Uniform Conduct (Barristers) Rules 2015 (NSW) Trade Practices Act 1974 (Cth) Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council (2014) 224 FCR 1; [2014] FCAFC 65 Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) (1978) 141 CLR 335; [1978] HCA 45 Australian Competition and Consumer Commission (ACCC) v Cornerstone Investment Aust Pty Ltd (in liq) (No 4) [2018] FCA 1408 Baltic Shipping Co v Dillon (1993) 176 CLR 344; [1993] HCA 4 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Chand v Commonwealth Bank of Australia [2015] NSWCA 181 Coolbrew Pty Ltd v Westpac Banking Corporation [2014] NSWSC 1108 Demlakian Engineers Pty Ltd v The Owners - Strata Plan 80453 [2014] NSWSC 401 Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943] AC 32; [1942] 2 All ER 122 Gould v Vaggelas (1984) 157 CLR 215; [1984] HCA 68 Hadley v Baxendale (1854) 9 Exch 341; (1854) 156 ER 145 Masterton Homes Pty Ltd v Palm Assets Pty Ltd (2009) 261 ALR 382; [2009] NSWCA 234 Munce v Vinidex Tubemakers Pty Ltd [1974] 2 NSWLR 235 NMFM Property Pty Ltd v Citibank Ltd (No 10) (2000) 107 FCR 270; [2000] FCA 1558 Nu Line Construction Group Pty Ltd v Fowler [2014] NSWCA 51 Orica Investments Pty Ltd v McCartney [2010] NSWSC 488 Raulfs v Fishy Bite Pty Ltd; Fishy Bite Pty Ltd v Raulfs [2012] NSWCA 135 Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 Ricochet Pty Ltd v Equity Trustees Executor & Agency Co Ltd (1993) 41 FCR 229; [1993] FCA 192 Robinson v Harman (1848) 1 Exch 850; (1848) 154 ER 363 Rowland v Divall [1923] 2 KB 500 The Leasing Centre (Aust) Pty Ltd v Rollpress Proplate Group Pty Ltd [2010] NSWSC 282 Tobacco Institute (Aust) Ltd v Australian Federation of Consumer Organisations Inc (1992) 38 FCR 1; [1992] FCA 962 Unity Insurance Brokers Pty Ltd v Rocco Pezzano Pty Ltd (1998) 192 CLR 603; [1998] HCA 38 Walplan Pty Ltd v Wallace (1985) 8 FCR 27; [1985] FCA 619 Wenham v Ella (1972) 127 CLR 454; [1972] HCA 43 Wilson v Church (1879) 13 Ch D 1 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Texts Cited: Benjamin's Sale of Goods (10th ed, 2017, Sweet & Maxwell) J D Heydon, Heydon on Contract (2019, Thomson Reuters) M G Bridge, The International Sale of Goods (4th ed, 2017, Oxford) Category: Principal judgment Parties: Aimin Luo (First Plaintiff) AusChina Procurement Centre Pty Ltd (Second Plaintiff) Windy Hills Australian Game Meats Pty Ltd (First Defendant) Eric Yingcai Zhang (Second Defendant) Ivan Lawrenze Coulter (Third Defendant) Representation: Counsel: L T Livingston (Plaintiffs) M J Hogg (Second Defendant)