( V G N o . 1 0 4 of 1 9 8 0 )

Coram: S m i t h e r s J.

11 February 1 9 8 1
REASONS FOR JUDGMENT

T h e s e p r o c e e d i n g s a r i s e o u t o f a course o f s y s t e m a t i c ,

h e a r t l e s s a n d f r a u d u l e n t e x p l o i t a t i o n b y t h e d e f e n d a n t s o f

pe r sons

o

f

modes

t d e f e n d a n t

means

i n

w h i c h

t h e

v i c t i m s

p a i d

t h o u s a n d s

o

f

d o l l a r s t o t h e company f o r w o r t h l e s s c o n t r a c t s , w e r e

c a u s e d t o i n c u r e x p e n s e s i n per forming unrewarding and onerous

work, a l l l o s t t h e i r money and some were l e f t w i t h a l o a d o f

deb t wh ich will be a h e a v y b u r d e n f o r y e a r s a h e a d .

T h e d e f e n d a n t C o l o u r s h o t P t y . L t d . ( t h e Company) h a s

p l e a d e d g u i l t y t o s e v e n c h a r g e s t h a t i t c o n t r a v e n e d t h e

p r o v i s i o n s of s . 5 9 ( 2 ) o f t h e T r a d e P rac t i ces Act 1 9 7 4 i n t h a t

it i n v i t e d p e r s o n s t o e n g a g e i n a b u s i n e s s a c t i v l t y r e q u i r i n g

t h e inves tmen t of moneys by them and the performance by them

of work a s s o c i a t e d w i t h t h e i n v e s t m e n t a n d made a statement

w i t h respect t o t h e p r o f i t a b i l i t y or r i s k or o t h e r m a t e r l a l

a s p e c t o f t h e b u s i n e s s a c t i v i t i e s w h l c h w a s f a l s e o r

m i s l e a d i n g i n a m a t e r i a l p a r t i c u l a r , n a m e l y t h a t t h e d e f e n d a n t

d i d b y bus iness

a d v e r t i s e m e n t

i n v l t e

p e r s o n s

t o

p a r t i c i p a t e

i n

t h e

In wh ich i ncome was e s t i m a t e d t o b e $ 3 0 0 per week.

I t i s c o n v i c t e d o f a l l t h e s e o f f e n c e s .

T h e d e f e n d a n t B a r r y S t a c e y h a s p l e a d e d g u l l t y t o n i n e

c h a r g e s of b e i n g k n o w i n g l y c o n c e r n e d i n a n o f f e n c e b y t h e

Company I n t h a t i t i n v i t e d p e r s o n s t o p a r t i c i p a t e I n a

b u s i n e s s a c t i v i t y r e q u i r i n g t h e i n v e s t m e n t o f money by t h e

p e r s o n s c o n c e r n e d a n d t h e p e r f o r m a n c e b y t h e m o f work

a s s o c i a t e d w i t h t h e i n v e s t m e n t a n d made w i t h r e s p e c t t o t h e

r i s k or o t h e r m a t e r i a l aspect of t h e a c t i v l t y s t a t e m e n t s t h a t

were f a l s e o r m i s l e a d i n g a s set f o r t h a b o v e .
-

I n respect f o u r o f t h e o f c h a r g e s w h i c h t o t h e

d e f e n d a n t S t a c e y h a s p l e a d e d g u i l t y t h e o f f e n c e o f t h e Company

t o which h e h a s p l e a d e d g u i l t y is a n o f f e n c e t o w h l c h t h e

Company h a s a l s o p l e a d e d g u l l t y a n d b e e n c o n v i c t e d .

I n respect o f t h e o t h e r f i v e c h a r g e s t o w h i c h t h e

d e f e n d a n t S t a c e y h a s p l e a d e d g u i l t y , t h e o f f e n c e t h e o f

Company t o c o n c e r n i n w h i c h h e h a s p l e a d e d g u i l t y is one i n

w h i c h t h e Company h a s n o t b e e n r e q u i r e d t o p l e a d a n d i n

respect o f w h i c h h a s n o t b e e n c o n v i c t e d . T h i s f a c t o r d o e s n o t

a f f e c t t h e o p e r a t i v e e f f e c t o f t h e d e f e n d a n t S t a c e y ' s p l e a t o

l s u p p o r t c o n v i c t i o n s o f t h e d e f e n d a n t S t a c e y i n respect o f

t h o s e f i v e c h a r g e s . S e e R. v . Bourne ('953) 36 Cr. App. R.
125 .

A c c o r d i n g l y t h e d e f e n d a n t S t a c e y is c o n v i c t e d o f a l l

n i n e o f f e n c e s t o w h i c h h e

h a s a d m i s s i o n

p l e a d e d

g u i l t y .

His

p l e a

of

g u i l t y i n v o l v e s a n o f g u i l t b y t h e company of the

o f f e n c e s t o c o n c e r n i n w h i c h h i s p l e a o f g u i l t y e x t e n d s . The

d e f e n d a n t S t a c e y was a t a l l mater ia l times the Managlng

D i r e c t o r a n d g u i d l n g s p i r i t o f t h e Company.

E a r l y

i n 1 9 7 9 t h e a c t i v i t i e s

company

commenced

b u s i n e s s

a c t i v i t e s

i n V i c t o r i a . T h o s e i n v o l v e d s e t t i n g up a ne twork

o f c o u r i e r s t h r o u g h o u t V i c t o r i a , l a t e r e x t e n d l n g t o S o u t h

A u s t r a l i a ,

T a s m a n i a

a n d

New Company

South

Wales

whose

duty

i t was

t o

c o l l e c t a n d f o r w a r d t o t h e i n M e l b o u r n e , e x p o s e d f i l m s

l e f t a t d e p o t s by p e r s o n s who had used them i n t h e i r c a m e r a s

and t o r e d e l i v e r t h e f i l m s a n d p h o t o g r a p h s when developed and

p r i n t e d t o t h e d 2 p o t s . The I d e a w a s t h a t t h e r e was t o b e

g r e a t s p e e d i n t h e d e s p a t c h , d e v e l o p m e n t a n d r e t u r n o f t h e

f i l m s and p r i n t s . The d e p o t s w e r e t o b e m i l k b a r s a n d s i m i l a r

p l a c e s t o w h i c h t h e p u b l l c h a d r e g u l a r a c c e s s . T h u s t h e

Company r e q u i r e d n u m e r o u s p e r s o n s t o a c t a s i t s c o u r i e r s .

T h e s e p e r s o n s w e r e a n d a r e h e r e i n a f t e r c a l l e d f r a n c h i s e e s .

T h i s is b e c a u s e t h e Company d i d n o t j u s t e n g a g e c o u r i e r s a s

a g e n t s o r employees .

By t h e p r o c e d u r e o f a d v e r t i s i n g I t a c q u i r e d t h e m a s

f r a n c h i s e e s who p a i d sums of money , u s .1a l ly $7 ,500 fo r t he

p r i v i l e g e . A t y p i c a l a d v e r t i s e m e n t s t a t e d ,

T h i s is a n o p p o r t u n i t y w i t h a n e s t a b l l s h e d

company t o s e c u r e a l i g h t p i c k u p a n d

d e l i v e r y r u n t o c o n t r a c t e d r e t a i l o u t l e t s i n

a named a r e a "
a.

T h e a d v e r t i s e m e n t c o n t l n u e d ,

" T h i s is a 5 d a y week b u s i n e s s t o . s u c h man

or woman w i t h a r e l i a b l e c a r , p o t e n t i a l

e a r n i n g s e s t i m a t e d a r o u n d $300 per week.

F u l l Pr ics $ 7 5 0 0 . F o r f u r t h e r i n f o r m a t i o n

phone Geelong 9 2 054 . . . ."

T h e p l e a o f g u i l t y c a r r i e s w i t h i t a n a d m i s s i o n o f

e v e r y e l e m e n t o f t h e c h a r g e . A c c o r d i n g l y i t is a d m l t t e d t h a t

t h e i n v i t a t i o n was t o p e r s o n s t o p a r t i c i p a t e i n a b u s l n e s s a n d

c o n t a i n e d a s t a t e m e n t t h a t t h e i n c o m e t h e m , t o t h e y i f

p a r t i c i p a t e d , was e s t i m a t e d b e t o $ 3 0 0 per week.

N o t w i t h s t a n d i n g t h e c a u t i o u s e x p r e s s i o n t h a t t h e p o t e n t i a l

e a r n i n g s were e s t i m a t e d a t a round $300 p e r week, t h e r e c a n b e

no d o u b t a d v e r t i s e m e n t

t h a t

p e r s o n s

were

i n t e n d e d

t o

u n d e r s t a n d

t h e

t o s a y t h a t , l o o k i n g a t t h e b u s i n e s s p r o s p e c t s

of t h e company, i n t h e l i g h t o f i t s a c t . ~ a l c i r c u m s t a n c e s , i t

was r e a s o n a b l e f o r t h e company t o es t imate , a n d t h a t i t d l d

e s t i m a t e , t h a t a d i l i g e n t and compe ten t f r anch i see wou ld make

an income i n t h e v i c i n i t y o f $300 p e r week.

On t h e e v i d e n c e i t is c l e a r t h a t s u c h a s t a t e m e n t was

q u i t e f a l s e . The company could a t n o s t a g e b e s a i d t o b e a n

e s t a b l i s h e d b u s i n e s s a n d a d v e r t i s i n g t o i n d u c e p e r s o n s t o

d e p o s i t t h e i r e x p o s e d f i l m s w l t h t h e c o m p a n y ' s d e p o t s was

q u i t e i n s u f f i c i e n t t o p r o d u c e t h e i n t a k e r e q u l r e d . T e l e v i s i o n

a n d r a d i o a d v e r t i s e m e n t s w e r e n o t u n d e r t a k e n . The e x p e r i e n c e

of f r a n c h i s e e s f r o m t h e commencement was o n e o f c o m p l e t e

f r u s t r a t i o n , d i s s a p o i n t m e n t a n d d i s i l l u s i o n m e n t . The e v i d e n c e

s h o w s t h a t o f t h e m o r e t h a n s e v e n t y f r a n c h i s e r s t h e most

successful of a l l , one J ames , ea rned l ess t h a n $ 6 0 i n e v e r y
-

week o f h i s f r a n c h i s e . One e a r n e d n o t h l n g a t a l l . O t h e r s

e a r n e d

p r a c t i c a l l y

n o t h i n g .

M o s t

h a d f r a n c h i s e e s

maximum

e a r n i n g s

o f

a round $ 2 0 . All t h e s e o f h a d c a r e x p e n s e s ,

a v e r a g i n g a b o u t $ 2 0 0 per month and had t o d e v o t e t h e m s e l v e s

f o r t h e g r e a t e r p a r t o f f i v e d a y s a week c a l l i n g a t d e p o t s .

They t r a v e l l e d d a i l y f o r q u i t e l o n g d i s t a n c e s u p t o a b o u t 2 0 0

miles o n f i v e d a y s e a c h week t o pick u p a t r i v i a l number of

films, l o s i n g money e v e r y d a y . T h e y d l d t h i s b e c a u s e i n m o s t

f r a n c h i s e c o n t r a c t s t h e r e was an agreement by the company to

buy back " t h e d e l i v e r y r u n " a f t e r s i x m o n t h s i f t h e f r a n c h i s e

had f a i t h f u l l y f u l f i l l e d t h e terms o f t h e c o n t r a c t . S e v e r a l

of t h e f r a n c h i s e e s c o n c e r n e d i n t h e s e p r o s e c u t i o n s s o u g h t t o

b e b o u g h t o u t , b u t w i t h o u t success a n d I n t h e c l o s i n g m o n t h s

o f 1 9 7 9 t h e company had no premises , no te lephone and was

n o t t o b e f o u n d .

Of t h e f r a n c h i s e e s b e f o r e t h e C o u r t t h e s e i n

p r o s e c u t i o n s t h e r e was p a i d by them f o r t h e l r d e l i v e r y r u n

sums as f o l l o w s : -

Mr. C a t i o n s $7,500

Mr. McLean 7,500
Mr. O'Neill 7,500
Mrs. Freeman 5,000

Mr. Kn lgh t 7,500
Mr. S a l t e r 7,500

Mr. Palmer 5,500

Mr. W i l e s m l t h , n o t

l e s s t h a n 5,500

There was a p r o v i s i o n i n m o s t c o n t r a c t s t h a t a payment of $100

or $150 p e r week wou ld be pa id t o t h e f r a n c h i s e e f o r t e n weeks

t o c o v e r t h e lesser r e t u r n s t h a t m i g h t b e e x p e c t e d i n t h e

e a r l y s tages . There was much d e f a u l t i-1 c o m p l y i n g w i t h t h e

o b l i g a t i o n t o make these paymen t s .

The company and t h e d e f e n d a n t S t a c e y p l e a d e d g u l l t y ,

b u t n e i t h e r h a s made a n y e x p l a n a t i o n t o t h e C o u r t c o n c e r n l n g

the commiss ion of these o f f ences and i ndeed no appea rance was

made on a p p e a r a n c e

beha l f

o f

e i t he r

o f

t h e

d e f e n d a n t s

o t h e r

t h a n

a n

b y t h e i r c o u n s e l t o en te r p l e a s o f g u i l t y a n d t o

u n s u c c e s s f u l l y a p p l y f o r a n a d j o u r n m e n t o f t h e s e m a t t e r s .

From t h e e i g h t p e r s o n s t o whom t h e s e p r o c e e d i n g s r e l a t e , t h e

company r e c e i v e d $ 5 3 , 5 0 0 . I t is c l e a r t h a t t h e f r a n c h l s e s

were n o t o n l y v a l u e l e s s b u t i n v o l v e d t h e f r a n c h i s e e s l n months

of work a n d s u b s t a n t i a l t r a v e l l i n g e x p e n s e s . From t h e

accoun t s o f t he company it is c l e a r t h a t f o r f o u r m o n t h s

e n d i n g J u n e 1979 i t s gross p r o f i t o n d e v e l o p i n g a n d p r o c e s s i n g

f i l m was $162. Its o v e r h e a d e x p e n s e s were $99,219. I ts o n l y

rea l income was from the s a l e o f f r anch i ses wh ich showed a

p r o f i t o f $ 1 7 9 , 5 9 3 . 0 0 a f t e r t h e c o s t o f c o m m i s s i o n s t o

salesmen and r epurchases . The g r o s s p r o c e e d s f r o m t h e s a l e o f

f r a n c h i s e s was $284,000.00. A t a p p r o x i m a t e l y $ 7 , 5 0 0 e a c h t h i s

r e p r e s e n t e d t h e sale o f t h i r t y f r a n c h i s e s .

One w o u l d t h i n k t h a t h a d g r e a t v i g o u r Seen shown i n

T . V . a d v e r t i s i n g i t was c o n c e i v a b l e t h a t t h e i n t a k e o f f i l m s

a t d e p o t s company as well as t h e

m i g h t

h a v e

b e e n

i m p r o v e d ,

t o f r a n c h i s e e s .

t h e

b e n e f l t

o f

t h e W h e t h e r

r e t u r n s

t o

f r anch i se r s wou ld have approached $300 pe r week e v e n i f much

a d v e r t l s l n g h a d b e e n u n d e r t a k e n is i m p o s s i b l e t o s a y . B u t t h e

d e f e n d a n t s d o n o t s u g g e s t t h a t t h e a d v e r t i s e d estimate was a

v a l i d o n e . T h e y c o n c e d e t h e f a l s i t y o f t h e p u b l l s h e d e s t l m a t e

a n d e x p l a i n n o t h i n g . I n a d d i t i o n t o t h e i n t a k e o f f i l m s a t

d e p o t s b e i n g so small t h e company f a i l e d t o g i v e t h e swift

s e r v i c e w h i c h was v i t a l t o t h e s u c c e s s o f t h e v e n t u r e .

R e t u r n s o f f i l m s t o f r a n c h i s e e s w e r e v e r y s l o w a n d s o m e t i m e s
d e l a y e d f o r weeks.

The o n l y rea l i n c o m e o f t h i s c o m p a n y w a s f r o m s a l e s o f

f r a n c h i s e s . T h i s w a s r e v e a l e d i n t h e f i r s t four months

t r a d i n g b u t i t d i d n o t d e t e r t h e d e f e n d a n t s f r o m s e l l i n g

f u r t h e r f r a n c h i s e s I n c l u d i n g t h o s e s o l d t o t h e p e r s o n s

men t ioned above . The conc lus ion t o which one i s f o r c e d is

t h a t a t t h a t s t a g e t h e company was a f l o a t o n l y upon t h e s a l e
._

o f t h e f r a n c h i s e s , t h a t t h e r e r e a l l y was n o b u s i n e s s t o

p r o v i d e r e t u r n s t o f r a n c h i s e e s I n e x c e s s o f t h e l r e x p e n d i t u r e ,

a n d n o e x p e c t a t i o n t h a t t h i s s i t u a t i o n w o u l d c h a n g e . I t i s

s u c h a s c e n a r i o w h i c h e m e r g e s f r o m t h e e v i d e n c e c o n s i d e r e d i n

t h e l i g h t e x p l a n a t i o n .

o f

t h e

p l e a s

o f

g u i l t y

a n d

t h e

a b s e n c e

o f

a n y

:

I t i s q u i t e c l e a r t h a t i t was t o s u p p r e s s t h e c l a s s o f

c o n d u c t r e v e a l e d i n these cases t h a t t h e T r a d e P r a c t l c e s Act

was p a s s e d . To a c h i e v e t h i s o b j e c t i v e h i g h m o n e t a r y pena l t ies

a r e p r o v i d e d . T h e p r i n c i p l e s o f p u n i s h m e n t h a v e b e e n

d i s c u s s e d e l s e w h e r e . See T r a d e Prac t ices Commisslon v. S t i h l

Chain

Saws C o r p o r a t i o n

( A u s t )

P ty .

L td . )

(1978)

A.T.P .R.40

-

9 1 .

H a r t n e l l

v . S h a r p o f A u s t r a l i a P t y . L t d . ( 1 9 7 5 ) 5 A.L.R.

4 9 3 a n d W i l d e v . P a g o n i s ( i n f r a ) .

I n t h i s case t h e e x t r a c t i o n o f s u m s , v e r y l a r g e , so

f a r a s t h e v i c t i m s were c o n c e r n e d , f o r n o b e n e f i t t o t h e m ,

a p p e a r s t o h a v e b e e n d e l i b e r a t e l y p l a n n e d e l a b o r a t e l y p u r s u e d

and t o h a v e b e e n m o s p r o f i t a b l e t t o t h e c o m p a n y . The r e t u r n s

f r o m s a l e s o f f r a n c h i s e s t o s e v e n t y p e r s o n s w o u l d h a v e
. .
13.

p r o v i d e d t h e c o m p a n y w i t h a g r o s s sum i n t h e v i c i n i t y o f
$ 5 0 0 , 0 0 0 .

T h i s C o u r t is c a l l e d o n t o c o n s i d e r s a l e s t o e l g h t

f r a n c h i s e e s .

The u n s u s p e c t i n g

C o u r t

s h o u l d

h a v e

r e g a r d

t o

t h e

d e g r e e

o f

loss i n f l i c t e d o n p e r s o n s , t h e n a t u r e o f t h e

f a l s e

s t a t e m e n t s ,

a n d u n l a w f u l

t h e

a b s e n c e

e x p l a n a t i o n

o f

of

t h e

d e f e n d a n t s f o r t h e l r a n d r e p r e h e n s i b l e c o n d u c t . I n

t h i s case n o t h i n g h a s b e e n u r g e d t o s u g g e s t t h a t t h e

p u n i s h m e n t s h o u l d n o t b e s u b s t a n t i a l a n d s u f f i c i e n t t o r e f l e c t

t h e i n t e n t i o n o f P a r l i a m e n t i n p a s s i n g t h e Act and p rov id ing

h i g h pena l t ies .

However i n a s s e s s i n g t h e a m o u n t o f t h e f i n e s t h e C o u r t

m u s t h a v e r e g a r d t o s . 7 9 ( 2 ) o f t h e Act which provides : -

" S . 7 9 ( 2 ) Where a p e r s o n i s c o n v i c t e d o f

t w o o r r e l a t i n g

m o r e

o f f e n c e s

c o n s t i t u t e d

b y ,

o r

t o , c o n t r a v e n t l o n s o f t h e same

p r o v i s i o l l o f P a r t V , b e i n g c o n t r a v e n t i o n s

t h a t a p p e a r t o t h e C o u r t t o h a v e b e e n o f

t h e same n a t u r e o r a s u b s t a n t l a l l y s i m i l a r

n a t u r e a n d t o h a v e o c c u r r e d a t o r a b o u t

t h e same time ( w h e t h e r o r n o t t h e p e r s o n

i s a l s o c o n v i c t e d o f a n o f f e n c e o r

o f f e n c e s ,

c o n s t i t u t e d

b y , p r o v i s i o n

o r

r e l a t l n g

t o ,

a n o t h e r c o n t r a v e n t i o n Or o t h e r

c o n t r a v e n t i o n s o f t h a t t h a t were

o f a d i f f e r e n t na tu re o r o c c u r r e d a t a

d i f f e r e n t t ime) , t h e C o u r t s h a l l n o t , i n

respect

o f p e r s o n

t h e

f i r s t - m e n t i o n e d

o f f e n c e s ,

impose

o n

t h e

f l n e s

t h a t ,

I n maximum

t h e

a g g r e g a t e , e x c e e d t h e f i n e t h a t

w o u l d b e a p p l i c a b l e i n r e s p e c t o f o n e

o f f e n c e b y t h a t p e r s o n a g a i n s t t h a t
p r o v i s i o n . "

l

I i
!

14.

E a c h o f t h e o f f e n c e s m u s t , I t h i n k , b e r e g a r d e d i n t h e terms

i

o f t h e S a v e

S e c t i o n

a s

o f f e n c e s

o f

t h e

s a m e

n a t u r e

a s

e a c h

o t h e r .

:

i t h a t t h e v i c t i m was d i f f e r e n t a n d t h e a r e a o f o p e r a t i o n s
I
!
i

was

d i f f e r e n t i n ezch case

a n d

t h e

a c t u a l

p e r s o n s o f f e n c e

who

made

t h e

i
I

a c t u a l r e p r e s e n t a t i o n s were d i f f e r e n t , t h e i n e a c h

1 case i n v o l v e d f a l s e s t a t e m e n t s w h i c h were s u b s t a n t i a l l y t h e
!

i same. I n e a c h case, a c o n t r a c t i n s u b s t a n t i a l l y t h e same

1 t e r m s was o f f e r e d f o r a s u b s t a n t i a l p r i c e f o r t h e same

c a t e g o r y o f activities o n t h e p a r t o f t h e two p r i n c i p a l s i n

l i t h e t r a n s a c t i o n s .
l
i
I

1 A c c o r d i n g l y , a s t o a n y o f t h o s e o f f e n c e s w h i c h w e r e

J commit ted a t or a b o u t t h e same time a s e a c h o t h e r t h e t o t a l
!
1

f i n e s i m p o s e d t h a t is $50 ,000

m u s t i n t h e case o f

n o t

e x c e e d

t h e

maximum

f o r

o n e

o f f e n c e ,

i

t h e company and $ 1 0 , 0 0 0 i n t h e

i case o f t h e d e f e n d a n t S t a c e y .

S e c t i o n 79(2) is a s e c t i o n l i m i t i n g t h e g e n e r a l i t y o f

s.79(1). Accord ing ly i t is t o b e c o n s t r u e d a s l i m i t i n g t h e

e f f e c t o f s.79(1) so f a r as i t s terms p r o v i d e , a c c o r d i n g t o

t h e i r o r d i n a r y m e a n i n g i n t h e c o n t e x t i n w h i c h t h e y a p p e a r .

Whether i n t h e o r d i n a r y a f f a i r s of mankind i t may b e s a i d t h a t

an e v e n t o c c u r r e d a t a b o u t t h e same time a s a n o t h e r e v e n t ,

d e p e n d s l a r g e l y o n t h e c o n t e x t . T h u s i n o n e s e n s e it may be

s a i d t h a t t h e D e c l a r a t i o n o f I n d e p e n d e n c e o c c u r r e d a t a b o u t

t h e same time as C a p t a i n C o o k ' s l a n d i n g a t B o t a n y B a y . I n

;

t h i s c a s e t h e c o n t e x t i s j u s t i c e t h e i n p u n i s h m e n t f o r

o f f e n c e s . P u n i s h m e n t is t o b e r e d u c e d w h e r e t h e r e 1s a time

r p a n a c c o r d i n g t o w h i c h t h e s e c o n d e v e n t o c c u r s a b o u t t h e same

time a s t h e f i r s t .

S e c t i o n 79(2) would seem t o r e f l e c t t h e p r i n c i p l e t h a t

a

man

s h a l l

n o t m a t t e r

b e

p u n i s h e d

t w i c e

f o r

t h e

same s e p a r a t e

o f f e n c e .

Looking a t t h e T r o a d l y two o f f e n c e s , a l b e i t

O f f e n c e s , c o m m i t t e d a t t h e same time may normal ly be regarded

a s s u b s t a n t l a l l y o n e o f f e n c e f o r t h e a p p l i c a t i o n o f t h i s
p r i n c i p l e .

I n t h e c o n t e x t t h e e x p r e s s i o n " a t t h e same t ime" used

by i t s e l f would impose a s t r i c t and narrow t e s t l i k e l y t o

e x c l u d e c a s e s f a i r l y w i t h i n t h e b r o a d c o n c e p t . The i n s e r t i o n s

of the words "or a b o u t " t o e x p a n d t h e t e s t t o r e a d " a t o r

a b o u t

t h e

same

time"

would

seem

t o s t r i c t l y

h a v e

b e e n

i n t e n d e d

t o

d e s c r i b e

t h e

c o n t e m p l a t e d

o f f e n c e s

l e s s c o n t r a v e n t i o n s

a n d

m o r e

p r a c t i c a l l y . T h u s o f f e n c e s c o m p r i s i n g w h i c h ,

w h i l e n o t o c c u r r i n g a t

t h e c o n s i d e r e d

same

t i m e ,

o c c u r , r e d

a t

a b o u t

t h e

same time a r e t o b e a s h a v i n g a d e q u a t e u n i t y .

Under t h i s t e s t t h e q u e s t i o n i n r e l a t i o n t o m u l t i p l e

c o n t r a v e n t i o n s n o t o c c u r r i n g a t t h e same time is whe the r t hey

o c c u r r e d

a b o u t

t h e

same

time.

The

c r i t i c a l moments

of r e l e v a n t

time

w h i c h a r e r e l e v a n t a r e t h o s e o f t h e o c c u r r e n c e o f t h e

c o n t r a v e n t i o n s . Is t h e c o i n c i d e n c e i n t ime so c l o s e a s t o

i m p a r t

u n i t y

t o

t h e p a r t i c u l a r

two

o f f e n c e s

a s

s u c h

i n

t h e

c o n t e x t

o f

j u s t i c e of a p u n i s h m e n t ?

To my mind t h e s p a n o f time be tween these moments

c o n t e m p l a t e d b y t h e s e c t i o n m u s t r e f l e c t a n e m p h a s i s o n t h e

n o t i o n o f c o n t e m p o r a n e i t y o f t h e c o n t r a v e n t i o n s r a t h e r t h a n

i

t h e n o t i o n t h e o f c o l l e c t i o n i n t o a f i c t i o n a l u n l t y o f

c o n t r a v e n t i o n s s e p a r a t e d b y a d i s t i n c t m e a s u r a b l e a n d

l

s u b s t a n t i a l p e r i o d o f time. Where , cons ide red a s o f f e n c e s

I a g a i n s t t h e c r i m i n a l law, t h e c o n t r a v e n t i o n s f a i r l y r e g a r d e d

are s e p a r a t e d b y s u c h a n i n t e r v a l i t i s o n l y by f i c t i o n t h a t

t h e y c a n b e r e g a r d e d as p a r t l c i p a t i n g i n a q u a l i t y o f u n i t y .

The s e c t i o n a p p e a r s t o me t o b e b a s e d o n s u b s t a n c e o f u n i t y

a n d n o t mere f i c t i o n t h e r e o f . I t w o u l d b e d l f f i c u l t t o

c o n t e m p l a t e t h a t P a r l i a m e n t was e x t e n d i n g a p r i v i l e g e t o

commit o f f e n c e s , i n f l i c t i n g g r e a t l o s s e s o n p e r s o n s , a n d

s u f f e r o n l y o n e p e n a l t y p r o v i d e d t h a t t h e o f f e n c e s were

commit ted a t a b o u t t h e s a m e tlme i n m e r e l y a b r o a d h l s t o r i c a l

s e n s e , w h e r e i n t e r v a l s o f weeks even or months would be
d i s r e g a r d e d .

S e p a r a t e c o n t r a v e n t l o n s o f t h e Act commit ted a t an

i n t e r v a l o f t w o m o n t h s c o u l d n o t r e a s o n a b l y b e r e g a r d e d a s

h a v i n g o c c u r r e d a t a b o u t t h e s a m e time. The r e l e v a n t frame o f

r e f e r e n c e is, I c o n c l u d e , t o o f f e n c e s so c l o s e t o g e t h e r i n

time

t h a t c o m m i s s l o n

t h e r e

i s a

b a s i s

i n

r e a l i t y

f o r

a t t r l b u t i n g

t o

them

a u n i t y C o n s t r u l n g

i n

t h e

o f

t h e

a c t u s

r e u s

o f

e a c h .

t h e

s e c t i o n

i n unsound

t h e

l i g h t

o f

t h e s e

o b s e r v a t i o n s

i t

would seem t h a t I t would be to regard t h e o f f e n c e s

a g a i n s t s . 5 9 ( 2 ) w i t h w h i c h t h i s C o u r t is c o n c e r n e d a s b e i n g

commit ted a t a b o g t t h e same time a s e a c h o t h e r i f t h e y were

s e p a r a t e d b y m o r e t h a n , a t m o s t , s a y t h r e e d a y s . A c c o r d i n g l y ,

f o r t h e commit ted

p u r p o s e s

o

f

s . 7 9 ( 2 )

I

r e g a r d

t h o s e

o f f e n c e s

w h i c h

were

a t i n t e r v a l s n o t l e s s t h a n f o u r d a y s o f e a c h o t h e r same time a s

as o f f e n c e s o c c u r r i n g a t h e r w i s e t h a n a t a b o u t t h e

e a c h o t h e r . T h i s is a m a t t e r o f some i m p o r t a n c e i n r e l a t i o n

t o t h e o f f e n c e t h e s u b j e c t o f p r o c e e d i n g VG No. 94 of 1980

b e c a u s e i t o c c u r r e d o n a d a t e n o t p r e c i s e l y e s t a b l i s h e d

between 1 4 and 31 August 1979. A s s u c h i t c o u l d h a v e o c c u r r e d

w i t h i n f o u r d a y s o f t h e o f f e n c e t h e s u b ~ e c t o f VG No. 92 of

1980. I f it d i d i t w o u l d n o t h a v e o c c u r r e d w i t h i n f o u r d a y s

of

a n y

o t h e r

o f l a t t e r

t h e

r e l e v a n t

o f f e n c e s .

If

o n

t h e

o t h e r

h a n d

i t o c c u r r e d i n t h e p a r t o f A u g u s t i t c o u l d h a v e

o c c u r r e d w i t h i n f o u r d a y s o f a l l t h r e e s u b s e q u e n t o f f e n c e s

w h i c h o c c u r r e d i n A u g u s t . The onus unde r s . 79 (2 ) wou ld appea r

t o b e on t h e C e f e n d a n t , b u t i n a n y e v e n t I t h i n k i t p r o p e r t o

act on

t h e sho r t ly

b a s i s

t h a t

t h e

o f f e n c e

t h e

s u b j e c t

o f

VG

No.

94 o f

1980 occur red be fo re 28 Augus t 1979 . The ev idence

would seem t o p o i n t i n t h a t d i r e c t i o n .

T h e

o f f e n c e s

o f

t h e r e s p e c t i v e l y

d e f e n d a n t

c o m p a n y

c h a r g e d

i n

t h e

f o l l o w i n g p r o c e e d i n g s were c o m m i t t e d o n t h e
f o l l o w i n g d a t e s : -

VG No. 79 of 1980 1 4 Augus t 1979

VG No. 81 of 1990 be tween 1 4 August 1 9 7 9 and

.
18.

28 August 1979

Augus t VG No. 82 1979 15 1980 o f

Augus t VG No. 85 1979 28 1980 o f

VG NO. 87 O f 1980 ‘September 24 1979

VG No. 89 of 1980 28 September 1979

VG No. 91 o f 1980 on or a b o u t 9 Oc tobe r 1979

T h e o f f e n c e s p r o c e e d i n g s

o

f

t h e

d e f e n d a n t

S t a c e y

a l l e g e d

i n

t h e

f o l l o w i n g

r e s p e c t i v e l y were c o m m i t t e d on t h e f o l l o w i n g

d a t e s , n a m e l y ,

VG No. 92 of 1980 14 Augus t 1979

VG No. 94 of 1980 a d a t e b e t w e e n 1 4 Augus t 1979 and

31 August 1979

VG No. 96 of August 1979 22 1980

VG No. 97 of August 1979 27 1980

VG No. 99 of 1980 Augus t 1979 28

VG No.100 of September 1979 24 1980

VG No.101 of September 1979 25 1980

VG NO.103 Of 1980 September 1979 28

VG No.104 of 1980 on or about 9 Oc tobe r 1979

Hav ing r ega rd t o t h e f o r e g o i n g : -

( a ) I

i m p o s e c o m p a n y

f i n e s

t o t a l l i n g

$ 9 5 , 0 0 0

u p o n

t h e

d e f e n d a n t

r e s p e c t i n t h e o f p r o c e e d i n g s h e r e i n

r e s p e c t i v e l y as f o l l o w s : -

VG No. 81 of 1980 $12,000
VG No. 79 of 1980 $12,000
VG No. 82 of 1980 $12,000
VG No. 85 of 1980 $12,000
VG No. 87 of 1980 $12,000
VG No. 89 of 1980 $15,000
VG NO. 91 Of 1980 $20,000

t h e p r o g r e s s i o n of t h e s e i m p o s i t i o n s r e f l e c t s t h e f a c t

t h a t i n t h e l a t t e r m o n t h s of 1979 t h e t i m e when t h e

company c e a s e d t o t r a d e was r e l e n t l e s s l y a p p r o a c h i n g .

( b l I i m p o s e f i n e s t o t a l l i n g $35,000 upon t he de fendan t

S t a c e y i n r e s p e c t t h e p r o c e e d i n g s o f h e r e i n

r e s p e c t i v e l y a s follows:-

VG No. 92 of 1980 $7,000
VG No. 94 of 1980 $ 500
VG No. 96 of 1980

$4 , 500

VG NO. 97 Of 1990 $ 500
VG No. 99 of 1980 $4,500
VG NO.100 Of 1980 $1,000
VG No.101 of 1980 $4,500
VG No.103 of 1980 $4,500
VG NO.104 Of 1980 $8,000

Everv o f f enc - mean t a l o s s o f e i t h e r $ 7 , 5 0 0 or $ 5 0 0 0

t o t h e v i c t i m .

By v i r t u e o f s . 18A o f t he Crimes Act 1914 and ss .82

a n d 1 0 6 1975 it is mandatory

o

f

t h e

V i c t o r i a n

M a g i s t r a t e s

(Summary

P r o c e e d i n g s )

Act

on t h i s C o u r t t o f i x a p e r l o d o f

impr isonment i n t h e case o f e a c h f i n e , n o t e x c e e d l n g o n e y e a r ,

e x c e p t i n p r o c e e d i n g s VG Nos. 94 and 97 no t exceed lng s1x

I m o n t h s i n d e f a u l t o f p a y m e n t o f s u c h f i n e . T h i s m a t t e r i s

d i s c u s s e d

a t

l e n g t h

i n

my d e l i v e r e d

R e a s o n s

f o r

J u d g m e n t

i n

W

l

l

d

v .

e

P a g o n i s VG No. 32 o f 1 9 8 0 o n 9 Februa ry 1981 . I

r e f e r t o and r e l y u p o n b y o b s e r v a t l o n s t h e r e i n .

A c c o r d i n g l y t h e C o u r t o r d e r s t h a t t h e a m o u n t of e a c h

f i n e i m p o s e d o n e a c h d e f e n d a n t b e p a i d t o t h e R e g l s t r a r of

t h i s C o u r t . As t h e d e f e n d a n t S t a c e y is n o t p r e s e n t i n C o u r t

a t t h e time t h i s ~ u d g m e n t is d e l i v e r e d s . l 0 6 ( l ) ( c ) o f t h e

M a g i s t r a t e s

(Summary

P r o c e e d i n g s )

Act

1 9 7 5 s e r v i c e

r e q u i r e s

t h a t

e a c h

f i n e b e p a y a b l e " w i t h i n 2 1 d a y s a f t e r o n him of a

n o t i c e g i v e n u n d e r p a r a g r a p h ( d ) " w h i c h q o t i c e s h a l l b e i s s u e d

b y t h e R e g i s t r a r o f t h l s C o u r t a n d t h e C o u r t o r d e r s t h a t e a c h

f i n e b e p a i d w i t h i n s u c h time. I n case c i r c u m s t a n c e s s h o u l d

so r e q u i r e l i b e r t y t o a p p l y is h e r e b y g r a n t e d . I t is o r d e r e d

i n each o f t h e f o l l o w i n g p r o c e e d i n g s , n a m e l y VG Nos. 92, 9 4 ,

96 , 97 , payment

99 ,

100 ,

1 0 1 ,

1 0 3

a n d

1 0 4

o f

1 9 8 0

t h a t

i n

d e f a u l t

o f

o f each f ine imposed t h e r e i n a s and when r e q u l r e d

a c c o r d i n g t o t h e o r d e r of t h e C o u r t t h e d e f e n d a n t S t a c e y b e

. 21.

i m p r i s o n e d f o r s i x m o n t h s . T h e e f f e c t o f t h i s is t h a t s h o u l d

t h e d e f e n d a n t S t a c e y d e f a u l t i n t h e payment of a l l f l n e s h e

wou ld be impr i soned fo r a t o t a l p e r i o d o f f o u r y e a r s a n d s i x
months.

I n e a c h of t h e a b o v e p r o c e e d i n g s i t is a l s o o r d e r e d

t h a t ,

( i )

i n

e a c h company

c a s e

a g a i n s t

t h e

d e f e n d a n t

C o l o u r s h o t

P t y .

Ltd. the s h a l l p a y t h e c o s t s t h e r e o f i n c l u d l n g

t h e p r o o f s of t h e a c t s a n d m a t t e r s p e r f o r m e d b y i ts
a g e n t s .

( i i ) I n e a c h case a g a i n s t t h e d e f e n d a n t S t a c e y h e s h a l l p a y

t h e c o s t s t o w o r k

of

t h o s e

p r o c e e d i n g s

so

f a r

a s

t h e y

r e l a t e

p e r f o r m e d a d d i t i o n a l t o t h a t p e r f o r m e d i n t h e

p a r t i c u l a r p r o c e e d i n g s a g a i n s t t h e Company t o which

t h o s e p r o c e e d i n g s r e l a t e .

( i i i ) i n t h e m a t t e r of g r a n t i n g r e l i e f p u r s u a n t t o s . Z l B ( d )

of t h e Crimes Act 1 9 1 4 t o t h e p e r s o n s r e f e r r e d t o i n

t h e s e p r o c e e d i n g s is r e s e r v e d .

( i v ) L i b e r t y t o a p p l y i s r e s e r v e d .

A c c o r d i n g l y i n c o n n e c t i o n w i t h t h e a b o v e t h e o r d e r o f

t h e C o u r t is t h a t : -

I n p r o c e e d i n g VG No. 7 9 of 1 9 8 0 a g a i n s t t h e company

p u r s u a n t t o S . 59 ( 2 ) of t h e Act t h e company be f lned
$12 ,000 .

I n p r o c e e d i n g VG No. 8 1 of 1 9 8 0 a g a i n s t t h e company

pursuant t o s . 5 9 ( 2 ) o f t h e Act t h e company be f ined
$12,000.

I n p r o c e e d i n g VG No. 82 of 1 9 8 0 a g a i n s t t h e company

p u r s u a n t t o s . 5 9 ( 2 ) of t h e Act t h e company be f ined
$ 1 2 , 0 0 0 .

I n p r o c e e d i n g VG No. 85 of 1 9 8 0 a g a i n s t t h e company

p u r s u a n t t o s . 5 9 ( 2 ) of t h e Act t h e company be f ined
$12,000.

I n p r o c e e d i n g VG No. 87 o f 1980 aga ins t t he company

p u r s u a n t t o s . 5 9 ( 2 ) o f t h e Act t h e company be f lned

$12 ,000 .

. I n p r o c e e d i n g VG No. 89 of 1980 aga ins t the company

p u r s u a n t t o s . 5 9 ( 2 ) o f t h e Act t h e company be f ined
$15,000.

I n p r o c e e d i n g VG No. 9 1 o f 1 9 8 0 a g a i n s t t h e c o m p a n y

p u r s u a n t t o s . 5 9 ( 2 ) o f t h e Act t h e company be f ined
$20,000.

I n p r o c e e d i c g S t a c e y

VG

No.

9 2

o

f

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

p u r s u a n t t o s.5 of t h e Crimes Act 1 9 1 4 and

s . 5 9 ( 2 ) o f t h e Act t h e d e f e n d a n t t o b e f i n e d $ 7 , 0 0 0 .

I n p r o c e e d i n g S t a c e y

VG

No.

9 4

of

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

p u r s u a n t t o s.5 o f t h e Crlmes Act a n d s . 5 9 ( 2 )

o f t h e Act t h e d e f e n d a n t t o b e f l n e d $ 5 0 0 .

I n p r o c e e d i n g S t a c e y

VG

No.

96

o f

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

p u r s u a n t t o s. 5 o f t h e Crimes Act a n d s . 5 9 ( 2 )

o f t h e Act t h e d e f e n d a n t t o b e f i n e d $ 4 , 5 0 0 .
~

I n p r o c e e d l n g S t a c e y

VG

No.

97

o f

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

p u r s u a n t t o s . 5 o f t h e Crimes Act and S. 5 9 ( 2 )

I

o f t h e Act t h e d e f e n d a n t t o b e f i n e d $ 5 0 0 .

I n p r o c e e d l n g S t a c e y p u r s u a n t

VG

No.

9 9

o

f

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

t o s . 5 o f t h e -. Crimes Act and S. 5 9 ( 2 )

of t h e Act t h e d e f e n d a n t t o b e f i n e d $ 4 , 5 0 0 .

I n p r o c e e d i n g VG No. 1 0 0 o f 1 9 8 0 a g a i n s t t h e d e f e n d a n t

S t a c e y p u r s u a n t t o s.5 o f t h e Crimes Act a n d s . 5 9 ( 2 )

o f t h e Act t h e d e f e n d a n t t o be f i ned $1 ,000 .

I n p r o c e e d i n g VG No. 1 0 1 o f 1 9 8 0 a g a l n s t t h e d e f e n d a n t

1

1

. 24.

i S t a c e y p u r s u a n t t o s . 5 o f t h e Cimes Act a n d s . 5 9 ( 2 ) of

t h e Act t h e d e f e n a a n t t o b e f i n e d $ 4 , 5 0 0 .

I n p r o c e e d i n g VG No. 1 0 3 o f 1 9 8 0 a g a l n s t t h e d e f e n d a n t

S t a c e y p u r s u s n t t o s . 5 o f t h e Crimes Act a n d s . 5 9 ( 2 )

of t h e Act t h e d e f e n d a n t t o b e f i n e d $ 4 , 5 0 0 .

I n p r o c e e d i n y S t a c e y

VG

No.

1 0 4 o f

1 9 8 0

a g a i n s t

t h e

d e f e n d a n t

p u r s u a n t t o s . 5 o f t h e Crlmes A c t a n d s . 5 9 ( 2 )

o f t h e Act t h e d e f e n d a n t t o b e f i n e d $ 8 , 0 0 0 .

I n each o f t h e a b o v e p r o c e e d i n g s it is f u r t h e r o r d e r e d
t h a t : -

1. I n e a c h p r o c e e d i n g a g a i n s t C o l o u r s h o t P t y . L t d . t h e

company s h a l l p a y t h e f i n e imposed t o t h e R e g i s t r a r o f

t h e C o u r t f o r t h w i t h .

t

2. I n e a c h p r o c e e d i n g a g a i n s t t h e d e € e n d a n t S t a c e y h e

s h a l l p a y t h e f i n e i m p o s e d t o t h e R e g i s t r a r of t h e

C o u r t w i t h l n 2 1 d a y s a f t e r s e r v i c e o n him of a n o t i c e

g i v e n b y t h e R e g i s t r a r u n d e r s . l 0 6 ( l ) ( c ) a n d ( d ) o f

t h e M a g l s t r a t e s (Summary P r o c e e d i n g s ) Act 1975 and

s h o u l d t h e d e f e n d a n t d e f a u l t i n t h e payment of s u c h

f i n e t h e d e f e n d a n t b e i m p r i s o n e d f o r s i x m o n t h s . I n

each case t h e n o t i c e s h a l l b e p o s t e d b y r e g i s t e r e d

p o s t a d d r e s s e d t o t h e d e f e n d a n t a t t h e f o l l o w i n g

J

. 25.
a d d r e s s e s : -
39A Crows Nest Road

Waver t o n N. S . W .
C/- Rowland William Thomas

3 3 N i c h o l s o n S t r e e t

Balmain N.S.W.
2 2 Tryon Road W o l l s t o n e c r a f t

Nth Sydney N.S .W.

!

C/- R o b e r t P a r k e r
Room 112
T r a v e l o d g e M o t e l

Northbourne Avenue

C a n b e r r a C i t y . 2 6 0 0

3 . I n e a c h case a g a i n s t t h e d e f e n d a n t C o l o u r s h o t P t y .

L t d . t h e p r o c e e d i n g s

Company

s h a l l

p a y

t h e

c o s t s

t h e

o f

i n c l u d l n g t h e p r o o f s o f t h e a c t s a n d

mattels performed by i t s a g e n t s .

4 . I n e a c h case a g a i n s t t h e d e f e n d a n t S t a c e y h e s h a l l p a y

t h e c o s t s o f t h o s e p r o c e e d i n g s so f a r as t h e y r e l a t e

t o w o r k p e r f o r m e d a d d i t l o n a l t o t h a t p e r f o r m e d i n t h e

p a r t i c u l a r p r o c e e d i n g s a g a i n s t t h e company t o w h i c h

t h o s e p r o c e e d i n g s r e l a t e .

5. The mat ter o f g r a n t i n g r e l i e f p u r s u a n t t o s . 2 1 B ( d ) o f

t h e Crimes Act 1 9 1 4 t o t h e p e r s o n s r e f e r r e d t o i n

t h e s e p r o c e e d i n g s is r e s e r v e d ; a n d

6. L i b e r t y t o a p p l y is r e s e r v e d .

I

i

I c e r t i f y t h a t t h i s and t h e

p r e c e d i n g p a g e s a r e a t r u e c o p y

of the Reasons for Judgment and

O r d e r o f t h e H o n o u r a b l e M r .

J u s t i c e

S m i t h e r s . A s s o c i a t e : B-G,

-

Dated: 12 F e b r u a r y 1 9 8 1 h

!

. . . . .. . .. .

Details

AGLC: Ducret, Alan Raymond v Colourshot Pty Ltd [1981] FCA 9
Case: [1981] FCA 9
Decision Date: 11 Feb 1981

CaseChat Overview and Summary

The Federal Court of Australia heard a case involving multiple proceedings against Colourshot Pty Ltd and Barry Stacey, accused of various breaches of the Trade Practices Act 1974. The proceedings related to fraudulent business practices that exploited individuals of modest means. The defendants were charged with inviting participation in a business activity requiring investment and labour, making false or misleading statements about the profitability or risks involved. Colourshot Pty Ltd pleaded guilty to seven charges, while Barry Stacey, as the Managing Director and guiding spirit of the company, pleaded guilty to nine charges of being knowingly concerned in the offences committed by the company. The court found that the defendants' actions were deliberate, heartless, and systematic exploitation, causing significant financial loss and distress to the victims.

The court considered the nature of the false statements made, the absence of any valid business activity, and the substantial profits made by the defendants at the expense of the victims. The court emphasised the importance of punishing such conduct to deter similar offences in the future. In assessing the fines, the court referred to section 79(2) of the Trade Practices Act, which limits the fines for multiple related offences to the maximum fine applicable for a single offence. The court concluded that the offences were of the same nature and occurred within a short timeframe, warranting a substantial but not excessive fine.

The court imposed fines totaling $95,000 on Colourshot Pty Ltd and $35,000 on Barry Stacey. Additionally, imprisonment terms were set for default in paying the fines, with specific conditions for service of notices and payment deadlines. The court also ordered the defendants to pay costs associated with the proceedings. Liberty to apply for relief under the Crimes Act 1914 was reserved, and the matter concerning granting relief to the victims was also reserved for future consideration.

Orders