Bells Securities P/L v Wickham Developments Ltd

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SUPREME COURT OF QUEENSLAND

CITATION: Bells Securities P/L v Wickham Developments Ltd & Anor [2001] QCA 204
PARTIES: BELLS SECURITIES PROPRIETARY LIMITED ACN 077 236 170
(plaintiff/respondent)
v
WICKHAM DEVELOPMENTS LIMITED ARBN 010 915 027
(first defendant/appellant)
ROBERT BRIAN LATHAM WICKHAM
(second defendant/appellant)
FILE NO/S: Appeal No 7446 of 2000
SC No 4962 of 2000
DIVISION: Court of Appeal
PROCEEDING: General Civil Appeal
ORIGINATING COURT:

Supreme Court at Brisbane

DELIVERED ON: 1 June 2001
DELIVERED AT: Brisbane
HEARING DATE: 16 May 2001
JUDGES: McMurdo P, Thomas and Williams JJA
Separate reasons for judgment of each member of the Court, each concurring as to the orders made
ORDER: Appeal dismissed with costs
CATCHWORDS:

TRADE PRACTICES AND RELATED MATTERS – CONSUMER PROTECTION – MISLEADING, DECEPTIVE OR UNCONSCIONABLE CONDUCT – CHARACTER AND ATTRIBUTES OF CONTRACT – REPRESENTATIONS - AS TO FUTURE MATTERS – where respondent loaned appellant company money on the security of a registered mortgage – where appellant sought extension – statement by a then director of respondent that he would recommend rollovers provided certain conditions existed, and that the company would accept his recommendations – director ceasing to hold office - whether predictions of future conduct of the respondent – conditions not satisfied – no breach of any predictions

PROCEDURE – PRACTICE UNDER RULES OF COURT – SUMMARY JUDGMENT – GENERALLY – whether the alleged representations were triable issues under the Trade Practices Act ss51 A, 52 and 87 (1A)

Trade Practices Act 1974 (Cth), ss 51A, 52 and 87 (1A)
Uniform Civil Procedure Rules 1999 (Qld), r 291

Byers v Dorotea Pty Ltd (1986) 69 ALR 715, considered
Cloverdell Lumber Co Pty Ltd v Abbott [1924] 34 CLR 122, considered
General Credits (Finance) Pty Ltd v Grimm [1978] Qd R 449, considered
Queensland Truss and Frame Pty Ltd v Grenadier Constructions No 2 Pty Ltd [1992] 2 Qd R 428
Wallingford v Mutual Society [1880] 5 AC 685

COUNSEL: L D Bowden for the appellants
M D Martin for the respondent
SOLICITORS: Broadbent Radich Sampson for the appellants
Bells Solicitors for the respondent
  1. PRESIDENT:  I agree with the reasons for judgment of Thomas JA and with the proposed order.

  1. THOMAS JA:   This is an appeal by the defendants against summary judgment for $4.25 million granted by Helman J on 3 August 2000.  The judgment was in respect of money owed by the defendant Wickham Developments Ltd under a registered mortgage and in respect of the liability of its director, Mr Wickham, pursuant to a guarantee.

  1. I do not propose to rehearse the principles upon which summary judgment applications should be determined. The relevant rules of court are now in Part 2 of Chapter 9 of the Uniform Civil Procedure Rules.[1] Subject to the particular requirements of those rules, the principles developed in leading cases concerned with such applications remain relevant.[2]  However, I leave open the question whether there remains any onus upon a defendant to establish that there is a question in dispute that ought to be…

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Details
Case
[2001] QCA 204
Decision Date

CaseChat Overview and Summary

The case of Bells Securities P/L v Wickham Developments Ltd involved a dispute where Bells Securities sought an extension on a loan from Wickham Developments, secured by a registered mortgage. The appellant company relied on a statement made by a then director of Wickham Developments that he would recommend rollovers if certain conditions were met, and that the company would accept his recommendations. The director ceased to hold office, and the conditions were not satisfied. Bells Securities claimed this was misleading conduct under the Trade Practices Act, specifically in relation to misleading or deceptive conduct. The matter was brought before the court to determine whether the alleged representations were triable issues under sections 51A, 52, and 87(1A) of the Trade Practices Act.

The central legal issue was whether the director’s statement constituted a representation as to the future conduct of Wickham Developments, which could be misleading if not fulfilled. The court examined if the statement could be considered a prediction of the respondent’s future conduct and whether its non-fulfillment constituted misleading or deceptive conduct under consumer protection laws. The court needed to determine if the alleged representations were sufficient to be considered triable issues under the relevant sections of the Trade Practices Act.

In delivering the judgment, the court held that the director's statement did not amount to a prediction of the respondent’s future conduct, but rather an indication of his personal intentions, which were not binding on the company. The court reasoned that since the conditions specified in the statement were not met, there was no breach of the alleged predictions. Consequently, the court found that the alleged misleading conduct did not occur, and the appeal was dismissed. The court ordered that the appeal be dismissed with costs.

Orders

Orders of the court

Appeal dismissed 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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