FEDERAL COURT OF AUSTRALIA
Foroughi v Star City Pty Limited
[2007] FCA 1503TRADE PRACTICES – misleading or deceptive conduct – no representation that casino would remove patron – reasonable grounds for representations – systems in pace to detect patrons subject to voluntary exclusion order – no reliance – no unconscionable conduct – no satisfactory proof of losses
NEGLIGENCE – no duty of care to prevent self-inflicted economic loss from gambling
BREACH OF STATUTORY DUTY – no private right of action for patron against casino for failure to detect gambler on premises in breach of a voluntary exclusion order
Trade Practices Act (1974) (Cth) ss 51A, 51AA, 51AB, 52 and 82
Casino Control Act 1992 (NSW) ss 4A(1)(c), 79, 80, 82, 85, 114, 115Agar v Hyde (2000) 201 CLR 552 applied
American Express International v Famularo (unreported, District Court of NSW, Norton DCJ, 19 February 2001) distinguished
Commercial Bank of Australia Ltd v Amadio and Anor (1983) 151 CLR 447 distinguished
Concrete Constructions (NSW) Pty Limited v Nelson (1990) 169 CLR 594 discussed
Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 applied
Perre v Apand Pty Limited (1999) 198 CLR 180 applied
Preston v Star City Pty Ltd [1999] NSWSC 1273 applied
Preston v Star City Pty Limited (No 3) [2005] NSWSC 1223 distinguished
Reynolds v Katoomba RSL All Services Club Ltd (2001) 53 NSWLR 43 applied
Rixon v Star City Pty Ltd [2001] NSWCA 265 discussedHon. Sir Lawrence Street AC KCMG, “Inquiry into the Establishment and Operation of Legal Casinos in New South Wales” (27 November 1991)
BEHROUZ FOROUGHI v STAR CITY PTY LIMITED
NSD 2137 OF 2005JACOBSON J
27 SEPTEMBER 2007
SYDNEY
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
NSD 2137 of 2005
BETWEEN:
BEHROUZ FOROUGHI
ApplicantAND:
STAR CITY PTY LIMITED
Respondent
JUDGE:
JACOBSON J
DATE OF ORDER:
27 SEPTEMBER 2007
WHERE MADE:
SYDNEY
THE COURT ORDERS THAT:
1.The application be dismissed.
2.The applicant pay the costs of the application.
3.The cross-claim be dismissed.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY
NSD 2137 of 2005
BETWEEN:
BEHROUZ FOROUGHI
ApplicantAND:
STAR CITY PTY LIMITED
Respondent
JUDGE:
JACOBSON J
DATE:
27 SEPTEMBER 2007
PLACE:
SYDNEY
REASONS FOR JUDGMENT
Introduction and overview
Mr Behrouz Foroughi is a problem gambler. According to expert evidence called on his behalf, he is also a pathological gambler, although this diagnosis is disputed by an expert called by the respondent, Star City Pty Limited.
On 17 May 2004 and 18 May 2004, Mr Foroughi suffered substantial losses while playing roulette at Melbourne’s Crown Casino and at Star City’s casino at Pyrmont. Following his losses on 18 May 2004, Mr Foroughi requested that Star City ban him from the casino. Provision is made in s 79(3) of the Casino Control Act 1992 (NSW) for a casino operator to give an order, known as a voluntary exclusion…
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- Case
- [2007] FCA 1503
- Decision Date
CaseChat Overview and Summary
The primary legal issue was whether Star City was liable for damages due to Mr Foroughi’s losses after breaching the exclusion order. The court needed to assess whether the casino had sufficiently explained the exclusion order’s terms and consequences to Mr Foroughi. The court examined Mr Foroughi’s testimony and the casino’s evidence, including the cross-examination, to determine if Mr Foroughi understood the order's implications and the potential consequences of breaching it. The court also had to consider the Casino Control Act’s provisions regarding voluntary exclusion orders and the casino's obligations.
The court found that Mr Foroughi’s claims were unconvincing, as the cross-examination revealed he had been adequately informed of the exclusion order's terms and potential consequences. The casino staff explained the order’s permanent nature, the need to avoid casino premises, and the possibility of more severe penalties for non-compliance. The court concluded that Mr Foroughi’s losses did not entitle him to damages against Star City. It held that while casinos have a duty to detect and remove excluded individuals, the specifics of such measures are for the Casino Control Authority. The court dismissed Mr Foroughi’s application and ordered him to pay the costs. The cross-claim by Star City was also dismissed without costs.
ORDERS:
1. The application be dismissed.
2. The applicant pay the costs of the application.
3. The cross-claim be dismissed.
Orders
Orders of the court
1. The application be dismissed.
2. The applicant pay the costs of the application.
3. The cross-claim be dismissed.
Background
Background to the litigation
Full text does not contain this section.
Evidence
Evidence Before The Court
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Established by: JACOBSON J
Full text does not contain this section.