Cadence (90) Investments Pty Ltd as trustee of the GDC Discretionary Trust v Simon Dougal Chalmers

Cadence (90) Investments Pty Ltd as trustee of the GDC Discretionary Trust commenced proceedings against Simon Dougal Chalmers, alleging misleading or deceptive conduct in contravention of the Australian Consumer Law. The plaintiffs claimed that they invested in shares based on misleading information provided by the first defendant, which overstated the company's revenue. The plaintiffs further alleged that the second defendant knowingly participated in this contravention, resulting in the plaintiffs' investment becoming worthless. The case was heard in the Federal Circuit Court of Australia.

The legal issues before the court involved whether the first defendant had engaged in misleading or deceptive conduct under sections 18 and 236 of the Australian Consumer Law, and whether the second defendant was complicit in this contravention. Additionally, the court had to determine the appropriate measure of damages for the plaintiffs, given the total loss of their investment. The court also had to address the issue of improper communication by the defendants' solicitors, who had sent contentious material to the judge prior to a motion without leave or consent.

The court found that the first defendant had indeed engaged in misleading or deceptive conduct by overstating the company's revenue. The court further held that the second defendant was knowingly involved in this contravention. The court awarded damages to the plaintiffs, considering the totality of the loss suffered. The court also highlighted the improper conduct of the defendants' solicitors in sending contentious material to the judge, reiterating the requirement for legal practitioners to communicate with the court through appropriate channels. The court ordered that the first and second defendants pay damages to the plaintiffs and imposed costs on the defendants for the improper conduct of their solicitors.