Storm Industries Pty Ltd trading as trustee of the T&L Trust v Unicar Australia Pty Ltd [2020] NSWDC 51

District Court New South Wales

Medium Neutral Citation: Storm Industries Pty Ltd trading as trustee of the T&L Trust v Unicar Australia Pty Ltd [2020] NSWDC 51 Hearing dates: 18-21 February 2020, 6 March 2020 Date of orders: 18 March 2020 Decision date: 18 March 2020 Jurisdiction: Civil Before: Abadee DCJ Decision: See paragraphs 365-370 Catchwords: TRADE AND COMMERCE – alleged misleading or deceptive conduct in connection with investment in a 'start-up' company – applicable statutory regime – whether representations misleading or deceptive – whether omission to disclose matters relating to circumstances of investment misleading or deceptive

DAMAGES – whether reliance made out – damage suffered – whether 'real' value of shares at date of acquisition established – whether appropriate to make order for compensation – relevance of contributory negligence

JURISDICTION – monetary claim under ss 236 and/or 237 of Australian Consumer Law – whether the Australian Consumer Law is applicable as state law –monetary claim falls within the monetary limit of the jurisdiction of the District Court of New South Wales – whether the District Court has jurisdiction to grant other relief under s 237 Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Competition and Consumer Act 2010 (Cth) Corporations Act 2001 (Cth) District Court Act 1973 (NSW) Fair Trading Act 1987 (NSW) Interpretation Act 1987 (NSW) Trade Practices Act 1974 (Cth) Cases Cited: ACCC v TPG Internet Pty Ltd (2013) 250 CLR 640 Adcock Private Equity v Porges [2018] NSWSC 1363 Akron Securities Ltd v Iliffe (1997) 41 NSWLR 353 Allstate Life Insurance Co v ANZ Banking Group (No. 5) (1996) 64 FCR 73 ASIC v Maxwell (2006) 59 ACSR 373 ASIC v Narain (2008) 169 FCR 211 Astley v Austrust (1999) 197 CLR 1 Awad v Twin Creeks Properties Pty Ltd [2012] NSWCA 200 Bendigo & Adelaide Bank v Cairncross, Bendigo & Adelaide Bank Ltd v Elite Advertising Group Pty Ltd [2011] NSWSC 610 BHPB Freight Pty Ltd v Cosco Oceania Charting (No.3) [2009] FCA 1087 Browne v Dunn (1893) 6 R 67 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592 Campbell v Backoffice (2009) 238 CLR 304 Campomar Sociedad Limitada v Nike International Ltd (2000) 202 CLR 45 Compaq Computer Australia Pty Ltd v Merry (1998) 157 ALR 1 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 Forrest v ASIC (2012) 247 CLR 486 Global Sportsman Pty Ltd v Mirror Newspapers Ltd (1984) 2 FCR 82 Gould v Vaggelas (1985) 157 CLR 215 Gregg v Tasmanian Trustees Ltd (1997) 73 FCR 91 H20 Learning Pty Ltd v Swim Loops Pty Ltd Jump Schools [2019] NSWDC 165 Hamilton v Whitehead (1988) 166 CLR 121 Henville v Walker (2001) 206 CLR 459 Heydon v NRMA (2000) 51 NSWLR 1 Houghton v Arms (2006) 225 CLR 553 HTW Valuers (Central Qld) v Astonland Pty Ltd (2004) 217 CLR 640 I&L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109 Ingot Capital Investments v Macquarie Equity Capital Markets & Ors [No.6] [2007] NSWSC 124 Ireland v WG Riverview Ltd [2019] NSWCA 307 Ivanoff v Phillip M Levy Pty Ltd [1971] VR 167 K & M Prodranovski Pty Ltd v Northshore Car Rentals Pty Ltd [2017] NSWSC 625 Kenny & Good Pty Ltd v MGICA (1992) Ltd (1999) 199 CLR 413 Khoury v Sidhu [2011] FCAF 71 Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563 Levy v Bablis [2011] NSWSC 461 Marks v GIO Australia Holdings (1998) 196 CLR 494 Masterton Homes Pty Ltd v Palm Assets Pty Ltd [2009] NSWCA 234 McLean Tecnic Pty Ltd v Digi-Tech (Australia) Pty Ltd [2005] NSWSC 386 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357 Morellini v Adams [2011] WASCA 84 Munchies Management Pty Ltd v Belperio (1988) 84 ALR 700 National Exchange Pty Ltd v ASIC (2004) 49 ACSR 369 Perpetual Trustee Co v Milanex Pty Ltd (in liq) [2011] NSWCA 367 Podresbek v Australian Iron & Steel Pty Ltd (1985) 59 ALR 529 Potts v Miller (1940) 64 CLR 282 at 289 Provectus Care Pty Ltd v Epicor Software (Aust) Pty Ltd [2009] NSWSC 1281 Rosenberg v Percival (2001) 205 CLR 434 Structum Pty Ltd v Basilios Mihalopoulos & CWCN Pty Ltd [2019] NSWDC 119 Taylor v Crossman (No.2) [2012] FCAFC 11 The NTF Group v PA Putney Finance Australia Pty Ltd [2017] NSWSC 1194 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Watson v Foxman (2000) 49 NSWLR 315 Wynbergen v Hoyts Corp Pty Ltd (1997) 149 CLR 25 Texts Cited: J.D Heydon, Competition and Consumer Law (Vol 2) (looseleaf, Thomson Reuters) [140.7000] J.D Heydon, Heydon on Contract (Thomson Reuters 2019) [14.100], [14.340] Category: Principal judgment Parties: Storm Industries Pty Ltd trading as trustee of the T&L Trust (Plaintiff) Unicar Australia Pty Ltd (First Defendant) Mr M Tsingolis (Second Defendant) Mr C Radcliff (Third Defendant) Representation: Counsel: Mr L Gyles SC and Ms A Campbell for the Plaintiff Mr D Tynan for the First and Second Defendants Dr E Peden SC for the Third Defendant