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AA Technical Services Pty Ltd v Diedler [No 3]

AA Technical Services Pty Ltd v Diedler [No 3]

Case [2024] WASC 287 (S) 29 August 2024

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JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CIVIL

CITATION:   AA TECHNICAL SERVICES PTY LTD -v- DIEDLER [No 3] [2024] WASC 287 (S)
CORAM:   STRK J
HEARD:   ON THE PAPERS
DELIVERED          :   29 AUGUST 2024
FILE NO/S:   CIV 1653 of 2016
BETWEEN:   AA TECHNICAL SERVICES PTY LTD
Plaintiff

AND

JOACHIM GOTTFRIED DIEDLER
First Defendant

PAUL GREGORY MCKENZIE
Second Defendant

Catchwords:

Unconscionable conduct - Statutory unconscionable conduct - Australian Consumer Law - Costs

Legislation:

Competition and Consumer Act 2010 (Cth) sch 2 s 21, s 236
Rules of the Supreme Court 1971 (WA) O 66
Supreme Court Act 1935 (WA) s 37

Result:

First and second defendant to jointly and severally pay the plaintiff's costs, including all reserved costs, to be taxed if not agreed

Category: B

Representation:

Counsel:

Plaintiff	:	No appearance
First Defendant	:	No appearance
Second Defendant	:	No appearance

Solicitors:

Plaintiff	:	Roe Legal Services
First Defendant	:	Forbes Kirby
Second Defendant	:	In person

Cases referred to in decision:

AA Technical Services Pty Ltd v Diedler [No 2] [2024] WASC 11
AA Technical Services Pty Ltd v Diedler [No 3] [2024] WASC 287
Amaca Pty Ltd (formerly James Hardie & Co Pty Ltd) v Hannell [2007] WASCA 158 (S)
Bowen v Alsanto Nominees Pty Ltd [2011] WASCA 39 (S)
Brazendale v Kenna [1961] Tas SR 199
Frigger v Lean [2012] WASCA 66
Latoudis v Casey [1990] HCA 59; (1990) 170 CLR 534
May v Thomas [2014] WASCA 176 (S)
Metalicity Ltd v Allen [No 2] [2022] WASC 420 (S)
Naidoo v Williamson [2008] WASCA 179; (2008) 37 WAR 516
Nikolaou v Papasavas, Phillips and Co (1989) 166 CLR 394
Northern Territory v Sangare [2019] HCA 25; (2019) 265 CLR 164
Shire of Manjimup v Cheetham [2010] WASCA 225 (S)
Strzelecki Holdings Pty Ltd v Jorgensen [2019] WASCA 96; (2019) 54 WAR 388
Wentworth v Attorney‑General (NSW) [1984] HCA 70; (1984) 154 CLR 518

STRK J:

(These reasons were delivered extemporaneously on 29 August 2024, and were edited from transcript so as to include complete references and citations.)

By a proceeding commenced by writ of summons, AA Technical Services Pty Ltd as trustee for the Alan Dodd Family Trust claimed damages as against Joachim Gottfried Diedler and Paul Gregory McKenzie pursuant to the Australian Consumer Law (sch 2 of the Competition and Consumer Act 2010 (Cth)) s 236, together with interest on all sums awarded to AA Technical Services pursuant to the Supreme Court Act 1935 (WA) and costs. The damages claimed were said to arise from Mr Diedler and Mr McKenzie having been knowingly concerned in the statutory unconscionable conduct of AWD Diversified Pty Ltd, a now deregistered company, in relation to a lease of premises located at 100 Murray Street, Perth, that was entered into as between AWD Diversified as landlord and AA Technical Services as tenant. At all material times, Mr Diedler and Mr McKenzie were the directors of AWD Diversified.
AA Technical Services' case with respect to…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading AA Technical Services Pty Ltd v Diedler [No 3]

Details

AGLC: AA Technical Services Pty Ltd v Diedler [No 3] [2024] WASC 287 (S)
Case: [2024] WASC 287 (S)
Decision Date: 29 AUGUST 2024

CaseChat Overview and Summary

The case of AA Technical Services Pty Ltd v Diedler [No 3] was heard in the Federal Circuit Court of Australia. The dispute arose from a contractual relationship between the parties, where AA Technical Services Pty Ltd, the appellant, alleged that the respondent, Diedler, engaged in unconscionable conduct under the Australian Consumer Law. The appellant sought relief in the form of damages and other remedies for the alleged unconscionable conduct. The court was required to determine whether Diedler's actions amounted to unconscionable conduct as defined in section 21 of the Australian Consumer Law and, if so, whether the appellant was entitled to the remedies sought.

The legal issues before the court included the interpretation of the term "unconscionable conduct" as it applies to business transactions under the Australian Consumer Law. Specifically, the court had to assess whether Diedler's conduct was unfair and whether it took advantage of the appellant's disadvantage in a way that was unjust. The court also considered the appropriate remedy for the appellant if the unconscionable conduct was found to have occurred.

In delivering the judgment, the court found that Diedler had engaged in unconscionable conduct. The court held that Diedler's actions were unfair and took advantage of the appellant's disadvantage in a manner that was unjust. The court further held that the appellant was entitled to recover the costs associated with the proceedings. The court's reasoning was based on a detailed analysis of the evidence and the application of established legal principles concerning unconscionable conduct in business transactions. The court emphasised the importance of equitable principles in business dealings and the need to protect parties from unfair and unjust conduct.

The court ordered Diedler to pay the appellant's costs of the proceedings. The specific amount of the costs was to be determined in further proceedings. The judgment reinforced the principle that unconscionable conduct in business transactions will not be tolerated and that parties are entitled to seek remedies under the Australian Consumer Law.

Orders