ADC v White

The parties to this appeal were ADC (the appellant) and White (the respondent). The dispute concerned allegations of inducement of breach of contract, negligent misrepresentation, and misleading and deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth). The matter came before the New South Wales Court of Appeal.

The Court of Appeal was required to determine whether ADC had intentionally induced a breach of contract by White, whether White had made negligent misrepresentations to ADC through non-disclosure, and whether ADC's conduct constituted misleading or deceptive conduct under the *Trade Practices Act*. Furthermore, the Court considered the issue of vicarious liability concerning employees appointed as directors of another company.

The Court found that ADC had failed to prove the necessary intention to induce a breach of contract. Regarding negligent misrepresentation, the Court held that non-disclosure could constitute a misrepresentation where there was a duty to disclose, but this was not established on the facts. On the *Trade Practices Act* claim, the Court found that while ADC's conduct was misleading or deceptive, it had not caused the loss claimed by White. The Court also addressed the principles of vicarious liability in the context of directors appointed by an employer to another entity, finding no basis for liability in this instance.

The appeals and cross-appeal were dismissed, with costs awarded to the respondent.