Comino v Manettas, Cooney v Manettas

In *Comino v Manettas* and *Cooney v Manettas*, the New South Wales Court of Appeal considered appeals arising from a single trial concerning allegations of misleading and deceptive conduct under the *Trade Practices Act 1974* (Cth) and the *Consumer Protection Act 1969* (NSW). The appellants, Comino and Cooney, alleged that the respondent, Manettas, engaged in conduct that misled them into believing they were acquiring a business as a going concern, when in fact the business was not viable and had been operated at a loss. The core of the dispute revolved around representations made by Manettas regarding the profitability and future prospects of the business.

The Court of Appeal was required to determine whether Manettas had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in contravention of the relevant legislative provisions. This involved assessing the nature of the representations made, the context in which they were made, and whether those representations induced the appellants to enter into the agreements for the purchase of the business. The court also had to consider the extent to which any alleged misleading conduct caused loss or damage to the appellants.

The Court of Appeal found that Manettas had engaged in misleading and deceptive conduct. It reasoned that the representations made by Manettas, particularly concerning the profitability of the business, were not supported by the evidence and were likely to mislead a reasonable person in the appellants' position. The court applied the principles established in cases concerning misleading or deceptive conduct, focusing on the objective effect of the representations on the consumer. The court held that the appellants had relied on these representations to their detriment, and that Manettas' conduct had caused them loss. The appeals were allowed, and the matter was remitted to the primary judge for the assessment of damages.