JM and PM Holdings Pty Ltd v Snap-on Tools (Australia) Pty Ltd

JM and PM Holdings Pty Ltd (the appellants) appealed to the Court of Appeal of the Supreme Court of New South Wales against a decision of the primary judge concerning alleged contraventions of the *Trade Practices Act 1974* (Cth) (the Act) by Snap-on Tools (Australia) Pty Ltd (the respondent). The dispute arose from a franchise agreement, with the appellants alleging that a cash flow projection provided by the respondent prior to entering the agreement constituted misleading and deceptive conduct in contravention of sections 51AD or 52 of the Act.

The central legal issues before the Court of Appeal were whether the primary judge erred in concluding that the cash flow projection did not contravene the relevant provisions of the Act, and, crucially, whether the appellants had suffered any loss or damage as a result of the conduct alleged to be in contravention.

The Court of Appeal upheld the primary judge's findings. The reasoning focused on the absence of demonstrated loss or damage suffered by the appellants by reason of the conduct they alleged constituted a contravention of the Act. The Court found no error in the primary judge's conclusion that no such loss or damage had been proven, which was determinative of the appeal.

Consequently, the appeal was dismissed, and the appellants were ordered to pay the respondent's costs.