Elanor Funds Management Ltd v Alceon Group Pty Ltd

The appeal in Elanor Funds Management Ltd v Alceon Group Pty Ltd was brought before the court to address allegations of misleading and deceptive conduct under the Australian Consumer Law in relation to the sale of the Bluewater Square Shopping Centre. Elanor, the appellant, claimed that the respondents, Alceon and CPRAM, had misrepresented the financial health and tenant history of the Centre, leading to financial loss when Elanor purchased the property. The trial judge had found against Elanor on these grounds, but the appellant sought to overturn these findings on appeal.

The court was required to decide whether the respondents had indeed engaged in misleading or deceptive conduct, whether Elanor had relied on any such conduct, and if Elanor had suffered any damages as a result. Additionally, the court had to address issues relating to the assessment of damages, the admissibility and reliability of expert evidence, and the procedural fairness in the trial judge's handling of certain evidence and submissions. The appeal court needed to determine if the trial judge erred in their assessment of the evidence and in their conclusions regarding the liability and damages.

The appeal court found that the respondents had engaged in misleading and deceptive conduct by representing that Centre tenants were not in arrears and had no history of arrears, which was not true. The court also found that Elanor had relied on these misrepresentations and had suffered damages as a result. The court quantified the damages at $2.86 million, apportioning $2.002 million to Alceon and $858,000 to CPRAM. The court was critical of the trial judge's handling of expert evidence and submissions, finding that the trial judge had not properly assessed the credibility and admissibility of certain evidence, and had not adequately considered Elanor's arguments regarding the expert's conclusions. The appeal court allowed the appeal and set aside the original orders, substituting them with orders that reflect the correct apportionment of damages and costs.

The final orders of the court were to dismiss most contentions raised by the respondents, allow the appeal, set aside the original orders made by the trial judge, and order the respondents to pay Elanor damages and costs. The first respondent, Alceon, was ordered to pay $2.002 million plus interest, and the second respondent, CPRAM, was ordered to pay $858,000 plus interest. Both respondents were also ordered to pay Elanor's costs of the appeal and the proceedings at first instance.