Butcher v Lachlan Elder Realty Pty Ltd

The case of *Butcher v Lachlan Elder Realty Pty Ltd* involved purchasers who alleged they were misled by a real estate agent regarding a waterfront property. The purchasers claimed that a survey diagram included in a brochure published by the agent, Lachlan Elder Realty Pty Ltd, was inaccurate and that they intended to develop the property in reliance on this diagram. The agent argued that the brochure contained a disclaimer regarding the reliability of information obtained from other sources.

The High Court of Australia was required to determine whether the real estate agent had made a representation to the purchasers and, if so, whether that conduct was misleading or deceptive, or likely to mislead or deceive, within the meaning of the relevant trade practices legislation. A key issue was the effect of the disclaimer included in the brochure.

The Court reasoned that the brochure, including the survey diagram, was provided by the agent, but the disclaimer clearly stated that the agent could not guarantee the accuracy of the information and that interested parties should rely on their own enquiries. The High Court held that, in light of the disclaimer and the circumstances in which the brochure was provided, the agent had not made a representation that was misleading or deceptive. The purchasers were sophisticated parties who had the opportunity to make their own inquiries, and the disclaimer served to qualify any information provided.

The High Court dismissed the purchasers' appeal and cross-appeal, ordering them to pay the respondent's costs. Special leave to appeal was also refused for a related application.