Klages v Walker

Case [2007] FMCA 2056


FEDERAL MAGISTRATES COURT OF AUSTRALIA

KLAGES & ORS v WALKER & ANOR [2007] FMCA 2056
TRADE PRACTICES – Misleading and deceptive conduct – whether written and oral representations were made – by whom representations made – whether representations misleading and deceptive – whether representations as to future matters – whether reasonable grounds for future matters representations – contraventions – involvement in contraventions – damages for trade practices breaches – damages for lost opportunity – rescission of loan agreement.
Trade Practices Act 1975 (Cth) ss.51A, 52, 75B, 82

ACCC v Dataline.Net.Au [2006] FCA 1427
ACCC v Giraffe World Australia Pty Ltd (No 2) (1999) 95 FCR 302; [1999] FCA 1161
Allied Pastoral Holdings Pty Ltd v Commissioner of Taxation [1983] 1 NSWLR 1
Browne v Dunn (1893) 6 R 67
Bulstrode v Trimble [1970] VR 840
Concrete Constructions Pty Ltd v Nelson (1990) 169 CLR 594
Cummings v Lewis & Ors (1993) ATPR (Digest) 46-103
Jones v Dunkel (1959) 101 CLR 298
Hamilton v Whitehead (1988) 166 CLR 121
McInnis v The Queen (1979) 143 CLR 575
King v GIO Australia Holdings Ltd (2001) 184 ALR 98; [2001] FCA 308
Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494
Precision Plastics Pty Ltd v Demir (1975) 132 CLR 362
Quinlivan v ACCC (2004) ATPR 42-010; [2004] FCAFC 175
Reid v Kerr (1974) 9 SASR 367
Sykes v Reserve Bank of Australia (1998) 88 FCR 511
Ting v Blanche (1993) 118 ALR 543
Wheeler Grace & Pierucci Pty Ltd v Wright (1989) ATPR 40-940
Yorke v Lucas (1985) 158 CLR 661

Allen, Allen’s Dictionary of English Phrases (Penguin: London, 2006)
Heydon, Cross on Evidence (Seventh Australian Edition), (Chatswood: LexisNexis Butterworths, 2004)
The Shorter Oxford English Dictionary on Historical Principles, Volume 1 (Oxford: Oxford University Press, 1973)

First Applicant: KLAGES PTY LIMITED
Second Applicant: ADAM KLAGES
Third Applicant: SCHAFER HOLDINGS PTY LTD
Fourth Applicant: CHRISTOPHER JOHN MOODY AS TRUSTEE FOR THE MOODY FAMILY TRUST
First Respondent: DUNCAN ALLISTER WALKER
Second Respondent: SHERINGHAM WA PTY LTD AS TRUSTEE FOR THE WALKER FAMILY TRUST
File Number: PEG 260 of 2005
Judgment of: Lucev FM
Hearing date: 12, 13 & 14 December 2006
Date of Last Submission: 14 December 2006
Delivered at: Perth
Delivered on: 10 December 2007

REPRESENTATION

Applicants: Mr D C Robinson
First Respondent: Mr D A Walker in person
Second Respondent: No appearance

ORDERS

  1. The Applicants to prepare, file and serve a Minute of Proposed Orders to accord with these the Reasons for Judgment delivered 10 December 2007, by 4:00pm on 14 December 2007.

  2. (a)    The Applicants and Respondents are to discuss the Minute of Proposed Orders by 4:00pm on 18 December 2007 and use their best endeavours to reach agreement on the terms of the Minute of Proposed Orders.

    (b)If the Applicants and Respondents reach agreement on the terms of the Minute of Proposed Orders that Minute must be signed by the Applicants and Respondents and filed as a draft consent order under rule 13:04 of…

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Details
AGLC
Klages v Walker [2007] FMCA 2056
Case
[2007] FMCA 2056
Decision Date

CaseChat Overview and Summary

The applicants, Klages, sought orders for the freezing of the respondents' property and for an interlocutory injunction against the respondents in the Federal Magistrates Court. The applicants alleged that the respondents, Walker, had engaged in fraudulent activities and had obtained assets through unlawful means. The applicants sought to prevent the respondents from disposing of their assets and to recover the proceeds of their alleged fraud.

The court was required to determine whether the applicants had established a serious question to be tried in relation to the respondents' alleged fraudulent activities and whether the applicants had satisfied the criteria for the grant of interlocutory injunctive relief. The court was also required to consider whether the applicants had demonstrated a real risk of dissipation of assets and whether the applicants had established a likelihood of success on the merits of their claims.

The court found that the applicants had established a serious question to be tried in relation to the respondents' alleged fraudulent activities. The court also found that the applicants had satisfied the criteria for the grant of interlocutory injunctive relief and that there was a real risk of dissipation of assets. The court held that the applicants had demonstrated a likelihood of success on the merits of their claims and that it was just and convenient to grant the orders sought by the applicants. The court made orders for the freezing of the respondents' property and for an interlocutory injunction against the respondents.

Orders

Orders of the court

1.

The Applicants to prepare, file and serve a Minute of Proposed Orders to accord with these the Reasons for Judgment delivered 10 December 2007, by 4:00pm on 14 December 2007.

2.

(a) The Applicants and Respondents are to discuss the Minute of Proposed Orders by 4:00pm on 18 December 2007 and use their best endeavours to reach agreement on the terms of the Minute of Proposed Orders.

(b) If the Applicants and Respondents reach agreement on the terms of the Minute of Proposed Orders that Minute must be signed by the Applicants and Respondents and filed as a draft consent order under rule 13:04 of the Federal Magistrates Court Rules, 2001 (Cth).

3.

Otherwise, the matter is adjourned to 10:15am on 20 December 2007.

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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