Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd

Case [2005] FCA 628


FEDERAL COURT OF AUSTRALIA

Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd [2005] FCA 628

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v LIQUORLAND (AUSTRALIA) PTY LTD AND ANOR
NSD 769 of 2003

ALLSOP J
11 MAY 2005
SYDNEY


IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 769 of 2003

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

APPLICANT

AND:

LIQUORLAND (AUSTRALIA) PTY LTD
FIRST RESPONDENT

WOOLWORTHS LTD
SECOND RESPONDENT

JUDGE:

ALLSOP J

DATE OF ORDER:

11 MAY 2005

WHERE MADE:

SYDNEY

THE COURT RULES THAT:

  1. The first sentence of paragraph 52 of the statement of Mrs Barr dated 26 November 2003 be allowed.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD 769 of 2003

BETWEEN:

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION
APPLICANT

AND:

LIQUORLAND (AUSTRALIA) PTY LTD
FIRST RESPONDENT

WOOLWORTHS LTD
SECOND RESPONDENT

JUDGE:

ALLSOP J

DATE:

11 MAY 2005

PLACE:

SYDNEY

REASONS FOR RULING

  1. Objection is taken to paragraph 52 of the statement of Mrs Barr dated 26 November 2003.  The second sentence is not read.  As to the first sentence, for the following reasons, I allow it.

  2. Section 78 deals with the exception to the inadmissibility of opinions.  It deals with lay opinions.  The terms of the section are as follows:

    Exception: lay opinions The opinion rule does not apply to evidence of an opinion expressed by a person if:

    (a) the opinion is based on what the person saw, heard or otherwise perceived about a matter or event; and

    (b) evidence of the opinion is necessary to obtain an adequate account or understanding of the person's perception of the matter or event.

  3. The opinion referred to in paragraph (a) of s 78 is required to be based on what the person saw, heard or otherwise perceived about a matter or event.

  4. The first sentence of paragraph 52 is in the following terms:

    If Dry Dock Bottle Shop were able to take advantage of such promotions and discounts by placing bulk orders, it would be able to sell the same products at cheaper prices for the same profit because of the cost of buying the products would be less.

  5. Mrs Barr has personal knowledge and perception of the promotions.  She has personal knowledge and perception of the conduct of the store.  To the extent that she is seeking to give a lay opinion about the operation of the store, she is seeking to give an opinion about what would occur, were something else to occur, that is, the ability to take advantage of the promotions that she has perceived.

  6. In my view, the first limb of s 78 is sufficiently wide to encompass an opinion which is in part hypothetical.  In substance an attempt is being made here to give an opinion as to both the operation of the store and what its operation would be on a certain hypothesis.  If that opinion is based on what the person saw, heard or otherwise perceived about the matter or event, (the matter or event in these circumstances being the operation of the store and the receipt of the promotions and discount offers from liquor wholesalers referred to in the previous paragraph) it is admissible.

  7. For those reasons, I allow the first sentence of paragraph 52.

I certify that the preceding six (7) numbered paragraphs are a true copy of the Reasons for Ruling herein of the Honourable Justice Allsop .

Associate:

Dated:            18 May 2005

Counsel for the Applicant: Mr S Yates SC with Mr P Renehan and Mr D Godwin
Solicitor for the Applicant: Australian Government Solicitor
Counsel for the Second Respondent: Mr R Smith SC with Mr M Jones
Solicitor for the Second Respondent: Clayton Utz
Date of Hearing: 11 May 2005
Date of Judgment: 11 May 2005
Details
AGLC
Australian Competition and Consumer Commission v Liquorland (Australia) Pty Ltd [2005] FCA 628
Case
[2005] FCA 628
Decision Date

CaseChat Overview and Summary

The Australian Competition and Consumer Commission initiated proceedings against Liquorland (Australia) Pty Ltd and Woolworths Ltd in the Federal Court of Australia, alleging breaches of consumer protection laws. The ACCC argued that Liquorland engaged in misleading or deceptive conduct by promoting certain products at discounted prices, which it did not intend to supply at the advertised prices. Woolworths Ltd, a co-respondent, was also implicated in the proceedings. Justice Allsop was the presiding judge in this matter, and his ruling was issued on 11 May 2005.

The central legal issue before the court was whether a specific statement made by Mrs Barr, a witness in the case, was admissible as evidence under Section 78 of the Evidence Act. The statement in question suggested that if Dry Dock Bottle Shop could take advantage of promotions and discounts by placing bulk orders, it would be able to sell the same products at cheaper prices due to reduced costs. The respondents objected to the admissibility of this statement, arguing that it was speculative and not based on personal perception. The court had to determine whether this statement met the criteria for admissibility as a lay opinion under Section 78.

Justice Allsop found that the first sentence of the statement in question was admissible. The judge concluded that the statement was based on Mrs Barr's personal observations and perceptions regarding the store's operations and the promotional offers. He noted that Section 78 allows for the admissibility of lay opinions if they are based on what the person saw, heard, or otherwise perceived about the matter or event. The court determined that the statement was necessary to obtain an adequate understanding of Mrs Barr's perception of the store's operations and the promotional discounts. Consequently, the court allowed the first sentence of paragraph 52 of Mrs Barr's statement to be admitted as evidence.

The court ruled that the first sentence of paragraph 52 of Mrs Barr's statement dated 26 November 2003 was admissible as evidence under Section 78 of the Evidence Act. The decision allowed this specific part of the statement to be presented as evidence in the proceedings against Liquorland and Woolworths Ltd, providing a foundation for the ACCC's claims regarding misleading or deceptive conduct.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

ALLSOP J

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Ratio Decidendi

Legal Principle Established

Established by: ALLSOP J

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