Campbell v Tran

In the case of Campbell v Tran, the plaintiffs, Campbell and his wife, alleged that Tran had engaged in misleading and deceptive conduct by making representations regarding an investment opportunity in a mortgage broking business. The plaintiffs claimed that Tran had promised them a 50% interest in the business, inducing them to sell their properties and transfer the proceeds to Tran. The dispute also included allegations of breaches of a mentoring agreement and sales and marketing promises. The matter was heard in the Federal Circuit Court of Australia.

The court needed to determine whether Tran's conduct constituted misleading or deceptive conduct under the Australian Consumer Law (ACL). It also had to consider the applicability of the ACL as both a Commonwealth law and a State "application" law, as well as the scope of "postal, telegraphic or telephonic services" under the Competition and Consumer Act 2010 (Cth). Additionally, the court had to assess the measure of damages under the ACL and address issues of procedural fairness in relation to unrepresented litigants. The court also provided obiter remarks on the pleading of claims in fraud and restitution and discussed the intention to create a trust, including Quistclose trusts.

The court found that Tran's conduct did constitute misleading or deceptive conduct under the ACL, as it involved the use of telephonic services, including the internet. The court held that Tran's representations regarding the investment opportunity were misleading and deceptive, as Tran had no intention of transferring the promised interest in the mortgage broking business. The court also determined the appropriate measure of damages under the ACL. The court concluded that the plaintiffs were entitled to damages for the losses they incurred due to Tran's conduct.

The court ordered Tran to pay the plaintiffs damages in the amount of $1,625,000, plus interest and costs. The court also made an order for the return of the properties sold by the plaintiffs to Tran, along with any proceeds derived from those properties.