Grande Enterprises Ltd v Pramoko

Case [2014] WASC 294


GRANDE ENTERPRISES LTD -v- PRAMOKO [2014] WASC 294



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2014] WASC 294
Case No:CIV:3371/20113-6, 13 DECEMBER 2013
Coram:LE MIERE J22/08/14
34Judgment Part:1 of 1
Result: Judgment for the plaintiff for $2,250,000.00 and interest of $362,835.62
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Parties:GRANDE ENTERPRISES LTD
TJANDRA ADI PRAMOKO

Catchwords:

Misleading or deceptive conduct pursuant to Fair Trading Act 1987 (WA) s 10
Breach of contract
Conduct in trade or commerce
Representation as to a future matter
Whether defendant intended and had capacity to perform the representation
Whether defendant had reasonable grounds for making representation
Individual director liable for contravention of corporation
Practice and procedure
Unexplained failure by defendant to call witness
Whether Jones v Dunkel inference can be drawn
Claim for loss and damage
Reliance
Proportionate liability
Whether plaintiff and its representatives and advisors are concurrent wrongdoers
Whether claim is apportionable
Measure of damages

Legislation:

Australian Consumer Law 2010 (Cth), s 87CB, s 87CD
Australian Securities and Investments Commission Act 2001 (Cth), s 12DA, s 12GF(1)(B)
Civil Liability Act 2002 (WA), pt 1F
Corporations Act 2001 (Cth), s 1325
Fair Trading Act 1987 (WA), s 9, s 10, s 77, s 79
Supreme Court Act 1935 (WA), s 32
Trade Practices Act 1974 (Cth), s 52, s 81(a), s 82, s 87, s 87CB, s 87CD

Case References:

Accounting Systems 2000 (Developments) Pty Ltd v CCH Australia Ltd (1993) 42 FCR 470
Adams v Morellini [2010] WASC 61
APIR Systems Ltd v Donald Financial Enterprises Pty Ltd [2009] FCAFC 45
Arktos Pty Ltd v Idyllic Nominees Pty Ltd [2004] FCAFC 119
Cafe v Australian Portland Cement Pty Ltd [1965] NSWR 1364; (1965) 83 WN (Pt1) (NSW) 280
Concrete Constructions Group Ltd v Litevale Pty Ltd (2002) 170 FLR 290
Cummings v Lewis (1993) 41 FCR 559
Digi-Tech (Australia) Ltd v Brand [2004] NSWCA 58; (2004) 62 IPR 184
Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR 217
Grainger v Williams [2009] WASCA 60
Houghton v Arms (2006) 225 CLR 553
HTW Valuers (Central Qld) Pty Ltd v Astonland Pty Ltd [2004] HCA 54; (2004) 217 CLR 640
Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; (2011) 243 CLR 361
Nella v Kingia Pty Ltd [1989] ATPR 40-952
Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd (2003) 196 ALR 257
Rapid Roofing Systems Pty Ltd v Natalise Pty Ltd [2007] QCA 94
Stumer Investments Pty Ltd v Azzura Holdings Pty Ltd [2010] QSC 352
Sykes v Reserve Bank of Australia (1998) 88 FCR 511


JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CHAMBERS
CITATION : GRANDE ENTERPRISES LTD -v- PRAMOKO [2014] WASC 294 CORAM : LE MIERE J HEARD : 3-6, 13 DECEMBER 2013 DELIVERED : 22 AUGUST 2014 FILE NO/S : CIV 3371 of 2011 BETWEEN : GRANDE ENTERPRISES LTD
    Plaintiff

    AND

    TJANDRA ADI PRAMOKO
    Defendant

Catchwords:

Misleading or deceptive conduct pursuant to Fair Trading Act

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Grande Enterprises Ltd v Pramoko [2014] WASC 294
Case
[2014] WASC 294
Decision Date

CaseChat Overview and Summary

The case of Grande Enterprises Ltd v Pramoko involved a dispute between the plaintiff, Grande Enterprises, and the defendant, Pramoko, who was a director of a corporation. Grande Enterprises alleged that Pramoko engaged in misleading or deceptive conduct in contravention of section 10 of the Fair Trading Act 1987 (WA) by making representations regarding a future matter without the intention or capacity to perform, and without reasonable grounds. Grande Enterprises also sought damages for breach of contract. The case was heard in the Supreme Court of Western Australia.

The legal issues the court had to address included whether Pramoko's conduct constituted misleading or deceptive conduct under the statute, whether Pramoko had the intention and capacity to perform the representations, and whether he had reasonable grounds for making them. Additionally, the court had to consider whether an individual director could be held liable for the contravention of a corporation, and the implications of Pramoko's failure to call a particular witness, potentially leading to an inference under Jones v Dunkel. The court also examined the plaintiff's claim for loss and damage, the concept of reliance, proportionate liability, and whether the plaintiff and its representatives and advisors were concurrent wrongdoers. Finally, the measure of damages was evaluated.

In its judgment, the Supreme Court found that Pramoko had indeed engaged in misleading or deceptive conduct. The court held that he lacked the intention and capacity to perform the representations and did not have reasonable grounds to make them. The court held that an individual director could be held liable for the contravention of a corporation. The court declined to draw an inference under Jones v Dunkel due to the absence of a reasonable excuse for the witness's non-attendance. The court determined that the plaintiff was entitled to recover damages for the losses suffered, and that the claim was apportionable, with the plaintiff and its representatives and advisors not being concurrent wrongdoers. The measure of damages was assessed based on the evidence presented, resulting in a judgment in favour of the plaintiff for $2,250,000.00, plus interest of $362,835.62.

The court ordered that the defendant pay the plaintiff the sum of $2,250,000.00, along with interest of $362,835.62, totaling $2,612,835.62. This amount represented the loss and damage suffered by the plaintiff as a result of the defendant's misleading or deceptive conduct and breach of contract. The judgment was final and conclusive, barring any further claims between the parties in relation to the matters decided.

Orders

Orders of the court

Judgment for the plaintiff for $2,250,000.00 and interest of $362,835.62

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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