Data Access Corp v Powerflex Services Pty Ltd

Data Access Corp and Powerflex Services Pty Ltd were parties to litigation concerning alleged breaches of contract and misleading and deceptive conduct. The case was heard by the High Court of Australia.

The High Court was required to determine, among other things, whether Powerflex Services Pty Ltd had engaged in misleading or deceptive conduct in contravention of section 52 of the Trade Practices Act 1974 (Cth) by representing that it had the capacity to provide certain services when it did not. The court also considered the nature of the contractual obligations between the parties and whether those obligations had been breached.

The High Court analysed the evidence regarding the representations made by Powerflex Services and the understanding of Data Access Corp. The court applied principles of contract law and the interpretation of statutory provisions relating to misleading and deceptive conduct, considering the objective meaning of the representations made and the circumstances in which they were made. The court ultimately found that Powerflex Services had engaged in misleading and deceptive conduct.

The High Court allowed the appeal in part, setting aside the orders of the Full Federal Court and remitting the matter to the Federal Court for further determination of damages.