Care A2 Plus Pty Ltd v Pichardo

Care A2 Plus Pty Ltd and another party (the Appellants) appealed to the Court of Appeal of New South Wales against orders made by the primary judge concerning claims of misleading and deceptive conduct and deceit against Karla Patricia Pichardo (the First Respondent) and another party. The dispute arose from alleged misrepresentations made in connection with a business transaction.

The Court of Appeal was required to determine whether the First Respondent, as Chief Financial Officer of a company, was merely a conduit for misrepresentations made to the Appellants, and whether her conduct caused loss to the Appellants. Further, the Court considered the requisite degree of knowledge for establishing knowing involvement in misleading and deceptive conduct, and the availability of exemplary damages for deceit.

The Court found that the First Respondent was not merely a conduit and that her actions had caused loss to the Appellants. It applied principles of Australian Consumer Law regarding misleading and deceptive conduct, and tort law concerning deceit. The Court determined that the First Respondent possessed the necessary knowledge for liability and that exemplary damages were warranted.

The appeal was allowed in part. The Court set aside certain orders of the primary judge and ordered that the First Respondent pay the Appellants a total of $1,090,000 plus interest, and $30,000 by way of exemplary damages. The First Respondent was also ordered to be jointly liable with the second respondent for the Appellants’ costs of the cross-claim and to pay the Appellants’ costs of the appeal.