Court of Appeal
Supreme Court
New South Wales
Medium Neutral Citation: Aardwolf Industries LLC v Tayeh [2020] NSWCA 301 Hearing dates: 13 October 2020 Date of orders: 20 November 2020 Decision date: 20 November 2020 Before: Bell P at [1];
Macfarlan JA at [2];
Leeming JA at [87]Decision: (1) Leave to appeal granted.
(2) The applicants are directed to file a Notice of Appeal conforming with the draft supplied to the Court within 14 days of today’s date.
(3) Dismiss the appeal with costs.
Catchwords: NEGLIGENCE – duty of care to avoid economic loss – whether vulnerability required – applicants pleaded vulnerability as an essential element of duty – no obligation on primary judge to consider alternatives to that position – no relevant vulnerability due to applicants’ ability to protect themselves from consequences of liquidators’ actions
CONSUMER LAW – misleading or deceptive conduct – whether reliance on accuracy of recitals to deed – clear inference from evidence that person knew of true position
CONSUMER LAW – misleading or deceptive conduct – whether conduct “in trade or commerce” – court-appointed liquidators performing statutory functions – assignment of property with view to facilitating business interests of purchaser arguably had an essentially trading or commercial character
CORPORATIONS – leave to commence action against court-appointed liquidators – governing principles – relevance of lengthy and inadequately explained delay
Legislation Cited: Corporations Act 2001 (Cth)
Jurisdiction of Courts (Cross-vesting) Act 1987 (Cth), s 7
Trade Marks Act 1955 (Cth)
Trade Marks Act 1995 (Cth)
Cases Cited: ASIC v Hellicar (2012) 247 CLR 345; [2012] HCA 17
Aston v Heron (1834) 2 My & K 390; 39 ER 993
Australian Health & Nutrition Association Ltd v Hive Marketing Group Pty Ltd (2019) 99 NSWLR 419; [2019] NSWCA 61
Bramco Electronics Pty Ltd v ATF Mining Electrics Pty Ltd (2013) 86 NSWLR 115; [2013] NSWCA 392
Brisbane South Regional Health Authority v Taylor (1996) 186 CLR 541; [1996] HCA 25
Caltex Refineries (Qld) Pty Ltd v Stavar (2009) 75 NSWLR 649; [2009] NSWCA 258
Concrete Constructions (NSW) Pty Ltd v Nelson (1990) 169 CLR 594; [1990] HCA 17
Ex parte Bucknell (1936) 56 CLR 221; [1936] HCA 67
Houghton v Arms (2006) 225 CLR 553; [2006] HCA 59
Hunter and New England Local Health District v McKenna (2014) 253 CLR 270; [2014] HCA 44
In re Maidstone Palace of Varieties Ltd [1909] 2 Ch 283
In the matter of Worldwide Speciality Property Services Ltd (in liq) [2017] NSWSC 1851; 35 ACLC 17-063
Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8
Karlsson v Griffith University [2020] NSWCA 176
Macedonian Church v Eminence Petar (2008) 237 CLR 66; [2008] HCA 42
Mamone v Pantzer [2001] NSWSC 26; (2001) 36 ACSR 743
McGowan v Chadwick [2002] EWCA Civ 1758
Mills v Sheahan (2007) 99 SASR 357; [2007] SASC 365
Perera v Genworth Financial Mortgage Insurance Pty Ltd (2017) 94 NSWLR 83; [2017] NSWCA…
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- AGLC
- Aardwolf Industries LLC v Tayeh [2020] NSWCA 301
- Case
- [2020] NSWCA 301
- Decision Date
CaseChat Overview and Summary
The Court of Appeal was required to determine whether the primary judge erred in refusing leave to commence proceedings against the liquidator, considering the applicants' claims of negligence and misleading or deceptive conduct. Specifically, the court considered whether vulnerability was a necessary element for establishing a duty of care in negligence in this context, and whether the liquidator's conduct in assigning the property was "in trade or commerce" for the purposes of consumer law. The court also examined whether the applicants had relied on the accuracy of recitals within a deed and whether their delay in seeking leave was relevant.
The Court of Appeal found that the applicants had not established the necessary vulnerability to support a claim in negligence, as they possessed the ability to protect themselves from the consequences of the liquidator's actions. Regarding the consumer law claims, the court inferred from the evidence that the applicants were aware of the true position and therefore did not rely on the accuracy of the recitals. While acknowledging that the assignment of property by a liquidator could, in certain circumstances, have a trading or commercial character, the court ultimately dismissed the appeal, noting the significant and inadequately explained delay in the applicants' pursuit of their claims.
Consequently, the Court of Appeal granted leave to appeal but dismissed the appeal itself, ordering the applicants to pay the costs.
Orders
Orders of the court
(1) Leave to appeal granted.
(2) The applicants are directed to file a Notice of Appeal conforming with the draft supplied to the Court within 14 days of today’s date.
(3) Dismiss the appeal with costs.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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