Lord Buddha Pty Ltd v Harpur

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IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE

COMMERCIAL AND EQUITY DIVISION

No. 7843 of 2008

BETWEEN:
LORD BUDDHA PTY LTD (ACN 117 265 988)	Plaintiff
and
PAUL HARPUR	Defendant
By original proceeding
AND BETWEEN:
PAUL HARPUR	Plaintiff
and
LORD BUDDHA PTY LTD	First Defendant
FORVALE PTY LTD (ACN 072 984 019)	Second Defendant
By counterclaim

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JUDGE:	ROBSON J
WHERE HELD:	Melbourne
DATE OF HEARING:	11 and 12 April 2011, 31 May, 1, 2, 3, 6, 7, 8, and 9 June
DATE OF JUDGMENT:	9 August 2011
CASE MAY BE CITED AS:	Lord Buddha Pty Ltd v Harpur
MEDIUM NEUTRAL CITATION:	[2011] VSC 366

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MISLEADING OR DECEPTIVE CONDUCT – Plaintiff sold to defendant commercially zoned land at Portland – Purchaser allegedly induced to buy the land by misleading or deceptive conduct in breach of ss 52 and 53A(2) of the Trade Practices Act 1974 and s 11 of the Fair Trading Act 1999 (Vic) – Purchaser allegedly informed by vendor’s real estate agent that various well known retailers intended to take tenancies at the site – Some of the representations made out – Vendor liable for misleading or deceptive conduct – Allegation that agent also engaged in misleading or deceptive conduct – Claim not made out – Agent found to be mere conduit – Purchaser did not establish that the agent endorsed or adopted the representations as to the interested tenants.

AMADIO DEFENCE – Purchaser allegedly suffering from disabilities – Pleaded Amadio defence – Disabilities not made out – If disabilities existed, vendor not aware nor should have been aware - Defence not made out.

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APPEARANCES:	Counsel	Solicitors
For the plaintiff on the claim and the first defendant on the cross claim	Mr R S Hay Mr J J Oswald-Jacobs	O’Donnell Salzano Lawyers
For the defendant on the claim and plaintiff on the cross claim	Ms S Marks SC Mr M Albert	Mills Oakley Lawyers
For the second defendant on cross claim	Mr P Little	Michael Benjamin & Associates

TABLE OF CONTENTS

INTRODUCTION.............................................................................................................................. 4

BACKGROUND................................................................................................................................. 5

SUMMARY OF FINDINGS............................................................................................................. 9

THE PEOPLE INVOLVED............................................................................................................. 10

Michael Barrett............................................................................................................................ 10

Charles Gaucci............................................................................................................................. 10

David Gibbs................................................................................................................................. 10

Erdan Hassan............................................................................................................................... 11

Paul Harpur................................................................................................................................. 11

Ronald Hutchins......................................................................................................................... 11

Bronwyn Paltaguou.................................................................................................................... 12

Michael Ramsen.......................................................................................................................... 12

David Rodden.............................................................................................................................. 12

Gordon Turner............................................................................................................................. 12

Kenneth Tunbridge..................................................................................................................... 12

Peter von Stiegler........................................................................................................................ 13

Darren Winjam............................................................................................................................ 13

MR PAUL HENRY HARPUR........................................................................................................ 13

Compound Property Investments............................................................................................ 14

Mr Harpur’s medical condition................................................................................................ 15

Mr Tunbridge’s observations on Mr Harpur’s abilities........................................................ 18

Mr Harpur’s trip to Corio with Mr Hutchins......................................................................... 19

Dr Peter McArdle’s opinion on Mr Harpur’s medical condition........................................ 20

THE ALLEGED REPRESENTATIONS....................................................................................... 21

CHRONOLOGY OF EVENTS....................................................................................................... 23

The Portland land............................................................................................................................ 23

David Gibbs’ acquisition and plans for the Portland land..................................................... 24

The presentation to the Glenelg Council................................................................................. 25

The retirement village................................................................................................................ 26

Mr Gibbs’ approaches to potential tenants............................................................................. 27

Mr Barrett’s and Mr Gaucci’s attempts to attract tenants and buyers................................ 28

Aldi........................................................................................................................................... 29

Betta Electrical......................................................................................................................... 29

Bunnings.................................................................................................................................. 29

Cheap as Chips......................................................................................................................... 30

Coles......................................................................................................................................... 30

Mitre 10................................................................................................................................... 31

Scotts…