Choo v Zhang

In *Choo v Zhang*, the claimants, two partners in a chicken shop business, alleged that the appellant, their third partner, had made a misrepresentation regarding the effect of a Licence Agreement they had all signed. The dispute concerned whether the appellant's statement constituted a misrepresentation and, if so, whether this conduct was misleading or deceptive under the relevant legislation. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were: first, whether the appellant's statement amounted to the representation alleged by the claimants; and second, assuming the conduct was misleading or deceptive, whether the claimants were entitled to recover the entire licence fee they had paid. The court also considered the sufficiency of findings to justify such a recovery.

The Court of Appeal allowed the appeal, setting aside previous orders made by the District Court. The court found that the claimants had not established their case, and therefore their claim against the appellant was dismissed. The respondents were ordered to pay the appellant's costs of the claim in the District Court and the costs of the appeal, and were granted a certificate under the Suitors’ Fund Act 1951 (NSW).