FEDERAL COURT OF AUSTRALIA
Macdonald v Australian Wool Innovation Ltd [2005] FCA 105
CONTRACT – applicants left secure employment after being offered opportunity to engage in research and development venture – respondent subsequently withdrew from arrangement – whether parties had reached concluded agreement – whether agreement reached on all essential terms – whether contract, if any, uncertain – whether contract, if any, repudiated – measure of damages
TRADE PRACTICES – misleading or deceptive conduct in trade or commerce –representations with respect to future matters – respondent corporation bears evidential onus of proof – whether at time representations made, respondent had reasonable grounds for making them – unconscionable conduct in business transactions – matters to be taken into account in determining whether conduct unconscionable – relevance of fact that applicants not under special disability or in position of special disadvantage
Trade Practices Act 1974 (Cth) ss 51AC, 51A, 52, 82 and 87
Pagnan SpA v Feed Products Limited [1987] 2 Lloyd’s Rep 601 at 619 referred to
Storer v Manchester City Council [1974] 1 WLR 1403 at 1408 referred to
Manatee Towing Co v Oceanbulk Maritime SA (The Bay Ridge) [1999] 2 Lloyd’s Rep 227 at 240-1 referred to
Pacific Carriers Limited v BNP Paribas (2004) 208 ALR 213 at [22] referred to
Equuscorp Pty Ltd v Glengallan Investments Pty Ltd (2004) 211 ALR 101 at [34] referred to
Reardon Smith Line Ltd v Hansen-Tangen [1976] 1 WLR 989 at 995-6 discussed
Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337 at 350 referred to
Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 at 334 and 337 referred to
Harvey v Pratt [1965] 1 WLR 1025 discussed
Masters v Cameron (1954) 91 CLR 353 at 360-3 applied
Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 at 548 discussed
Sinclair, Scott and Co Ltd v Naughton (1929) 43 CLR 310 at 316-7 and 332 referred to
Toyota Motor Corporation Australia Ltd v Ken Morgan Motors Pty Ltd [1994] 2 VR 106 at 131 discussed
Seven Cable Television Pty Ltd v Telstra Corporation Ltd (2000) 171 ALR 89 referred to
Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622 at 628 referred to
Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 at 436-7 referred to
Thorby v Goldberg (1964) 112 CLR 597 at 607 discussed
G Scammell and Nephew Ltd v H C and J G Ouston [1941] AC 251 at 268 discussed
Ipex Software Services Pty Ltd v Hosking [2000] VSCA 239 at [56] considered
York Air Conditioning and Refrigeration (A/sia.) Pty Ltd v The Commonwealth (1949) 80 CLR 11 at 53 referred to
Branir Pty Ltd v Owston Nominees (No. 2) Pty Ltd (2001) 117 FCR 424 at 525 discussed
The Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 at 92 and 99 applied
Sunbird Plaza Pty…
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- Case
- [2005] FCA 105
- Decision Date
CaseChat Overview and Summary
The court examined the communications between the parties, particularly the email from AWI’s Managing Director, Col Dorber, and the subsequent letter to the applicants, to ascertain the existence and terms of any agreement. The court found that there was no concluded contract as the terms had not been finalised and the applicants had not received formal approval from AWI’s Board. The court also concluded that there was no misleading or deceptive conduct or unconscionable conduct on the part of AWI. The applicants’ claims were dismissed.
The court ordered that by 11 March 2005, the parties file and serve draft orders reflecting the judgment, along with an outline of their submissions regarding costs. The parties were also granted liberty to apply for further orders if necessary. This decision underscored the necessity of formal agreements and the importance of Board approval in the establishment of new business entities.
Orders
Orders of the court
1. On or before 11 March 2005, each party file and serve draft orders giving effect to these reasons for judgment.
2. On or before 11 March 2005, each party file and serve an outline of submissions regarding the matter of costs.
3. The parties be granted liberty to apply.
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
Established by: WEINBERG J
Full text does not contain this section.