FEDERAL COURT OF AUSTRALIA
Dynamic Hearing Pty Ltd v Polaris Communications Pty Ltd [2010] FCAFC 135
Citation: Dynamic Hearing Pty Ltd v Polaris Communications Pty Ltd [2010] FCAFC 135 Appeal from: Polaris Communications Pty Ltd (ACN 006 102 601) v Dynamic Hearing Pty Ltd (ACN 098 876 212) [2009] FCA 890 Parties: DYNAMIC HEARING PTY LTD (ACN 098 876 212) v POLARIS COMMUNICATIONS PTY LTD (ACN 006 102 601) and PLANTRONICS PTY LTD (ACN 080 486 193) File number: VID 753 of 2009 Judges: MOORE, BESANKO AND GORDON JJ Date of judgment: 19 November 2010 Catchwords: TRADE PRACTICES – where appellant and respondent were both suppliers of acoustic shock protection devices – where appellant conducted study and published report comparing appellant’s device with respondent’s device – where study was represented as properly conducted scientific test – where report said to imply that respondent’s device was unsuitable for use in call centres and did not meet intelligibility standards required by Telstra – where trial judge found appellant had engaged in misleading or deceptive conduct in contravention of s 52 of the Trade Practices Act 1974 (Cth) and s 9 of the Fair Trading Act 1999 (Vic) – where trial judge found appellant had made false or misleading representations in contravention of s 53(a) of the Trade Practices Act 1974 (Cth) and s 11 of the Fair Trading Act 1999 (Vic) – whether it is duty of appeal court to consider evidence relevant to alleged errors by trial judge and decide for itself proper conclusion – whether trial judge in better position than appeal court to assess evidence of specialised and highly technical nature – whether study had been properly conducted scientific test – whether report contained representations to effect that respondent’s device unsuitable for use in call centres and did not meet Telstra intelligibility requirements. Held: Appeal dismissed. The trial judge was correct in finding that the representations to the effect that the study was a properly conducted scientific test were false or misleading and amounted to misleading and deceptive conduct. The trial judge was correct in finding that the report contained representations as to the suitability of the respondent’s device and that these representations were false and misleading and amounted to misleading and deceptive conduct. Legislation: Federal Court of Australia Act 1976 (Cth) ss 24, 28
Trade Practices Act 1974 (Cth) ss 52, 53
Fair Trading Act 1999 (Vic) ss 9, 12Cases cited: Astrazeneca Pty Limited v GlaxoSmithKline Australia Pty Limited [2006] ATPR 42-106; [2006] FCAFC 22
Branir v Owston Nominees (No 2) Pty Ltd (2001) 117 FCR 424
Coulton v Holcombe (1986) 162 CLR 1
CSR Ltd v Della Maddalena (2006) 224 ALR 1; [2006] HCA 1
Fox v Percy (2003) 214 CLR 118
Metwally v University of Wollongong (No 2) (1985) 60 ALR 68
S W Hart & Co Pty Ltd v Edwards Hot Water Systems (1985) 159 CLR 466
Turbo Tek Enterprises Inc v Sperling Enterprises Pty Ltd (1989) 23 FCR 331
Vawdrey Australia Pty…
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- Case
- [2010] FCAFC 135
- Decision Date
CaseChat Overview and Summary
The primary legal issues were whether the appeal court should independently assess the evidence and determine the proper conclusion, whether the trial judge was in a better position to evaluate the highly technical evidence, and whether the study was a properly conducted scientific test. Additionally, the court needed to determine if the report contained representations indicating that the respondent's device was unsuitable for use in call centres and did not meet Telstra's intelligibility requirements.
The appeal court found that the primary judge was correct in concluding that SoundShield complied with Telstra's intelligibility requirements and was suitable for TT4-compliant operation concerning speech intelligibility. The court determined that the comparison report was misleading and deceptive because the appellant did not follow the randomisation table in the test protocol and the test did not include a suitable control condition. However, the court found that the primary judge erred in concluding that the appellant failed to adequately inform itself of the appropriate settings for SoundShield in the test conditions or to enlist the assistance of a suitably trained person. The court concluded that this error did not justify altering the primary judge's orders regarding the test setup representations.
The appeal was dismissed, and the appellant was ordered to pay the respondent's costs of the appeal.
Orders
Orders of the court
1. The Appellant be granted leave to appeal in so far as may be necessary.
2. The Appeal be dismissed.
3. The Appellant pay the First Respondent’s costs of the appeal.
4. There be no order as to the costs of the Appeal as between the Respondents.
Note:
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
The primary judge concluded that this matter and Telstra’s past and continuing custom for SoundShield and the fact there were very few complaints of intelligibility problems in relation to SoundShield’s set up by appropriately trained installers was sufficient to support the conclusion that SoundShield complies with Telstra’s intelligibility requirement.SoundShield is not suitable for TT4-compliant operation and is not G616 compliant The comparison report was concerned only with intelligibility for speech. G616 has no intelligibility requirement. The primary judge found that nothing in the comparison report gave rise to any implication about SoundShield’s compliance with G616. The primary judge found that the comparison report did give rise to an implication that SoundShield was not suitable for TT4-compliant operation. The primary judge referred to the word “suitable” in the pleaded representation and said that he understood that to mean capable of meeting the intelligibility standard required by TT4, “as opposed to being TT4 compliant in the more general sense”. The pleaded representation arose by implication from the comparison report because of the sentences in the report set out in [17] (third paragraph, second and third sentences) above. The primary judge said: That is because, while speech intelligibility (90% at 55 dBA) is only one TT4 requirement, non-satisfaction with it results in a device’s non-compliance, even if all other requirements are satisfied. The representation was misleading or deceptive because SoundShield was suitable for TT4-compliant operation so far as speech intelligibility was concerned. The primary judge reached that conclusion relying on the matters referred to in [69] above. THE NATURE OF THE APPEAL The jurisdiction of this Court to hear appeals from judgments of single judges of the Court is conferred by s 24(1)(a) of the Federal Court of Australia Act 1976 (Cth). The powers of the Court are contained in s 27 and s 28. The appeal to this Court is by way of rehearing and the review of the primary judge’s findings of fact is to be conducted in accordance with the principles stated in Warren v Coombes (1979) 142 CLR 531. The powers of the Court include the power to affirm, reverse or vary the judgment appealed from and to give such judgment, or make such order, as, in all the circumstances, it thinks fit, or refuse to make an order. Each party made submissions about the error which must be shown before this Court will interfere with the decision and orders of the primary judge. The appellant referred to the fact that the appeal was an appeal by way of rehearing (Astrazeneca Pty Limited v GlaxoSmithKline Australia Pty Limited [2006] ATPR 42-106; [2006] FCAFC 22). It also referred to the following passage in the reasons for judgment of Kirby J in CSR Ltd v Della Maddalena (2006) 224 ALR 1 at 7 [16]; [2006] HCA 1:Requirements and limitations: The form of rehearing so provided “shapes the requirements, and limitations, of such an appeal”. The relevant “requirements” are that the appellate court is obliged to conduct a thorough examination of the record and a real rehearing. It is not confined to reconsideration of the record in order to correct errors of law, although that will certainly be encompassed in such an appeal. It is required to consider suggested errors of fact-finding. Experience teaches that many errors of this kind arise at first instance, more perhaps than errors of law. Having conducted a rehearing as so described, the appellate court is obliged to “give the judgment which in its opinion ought to have been given in the first instance”. This involves, where, as here, there is no jury, conducting a thorough review of the primary judge’s reasons and engaging in the tasks of “weighing conflicting evidence and drawing … inferences and conclusions”.(Citations omitted.)