McMillan v Coolah Home Base Pty Ltd

Case [2024] NSWCA 138


Court of Appeal


Supreme Court


New South Wales

  • Amendment notes
Medium Neutral Citation: McMillan v Coolah Home Base Pty Ltd [2024] NSWCA 138
Hearing dates: 18 and 19 March 2024
Date of orders: 5 June 2024
Decision date: 05 June 2024
Before: Ward P at [1]; Leeming JA at [480]; Stern JA at [481]
Decision:

1.   Appeal dismissed with costs.

Catchwords:

REAL PROPERTY – caravan park with entitlement to exclusive long-term sites through share in company which owned the land – at first instance, claim by purchasers of shares to equitable interest in sites – no challenge to finding that no equitable interest in the sites was acquired – challenge to rejection of allegation that alleged representations made that the purchasers were buying sites as land, as well as shares – claim for specific performance – company placed into liquidation caravan park sold to company – indefeasibility of title

CORPORATIONS – oppression – company placed into voluntary administration and caravan park land sold to company owned by same directors – where primary judge found that certain other conduct of affairs of company was oppressive – whether primary judge failed to find sale of caravan park itself amounted to oppressive conduct – whether relief ordered was sufficient to remedy oppressive conduct

CONSUMER PROTECTION – misleading or deceptive conduct – where appellants did not challenge primary judge’s finding that there had been no reliance on the representations said to constitute misleading and deceptive conduct – whether primary judge erred in failing to find misleading or deceptive conduct by the making of representations as to sale of sites as land – whether misleading or deceptive conduct in relation to assurances that caravan park could not be sold without shareholder approval and/or as to whether cabins were fixtures – whether adequate reasons

CONSUMER PROTECTION – unconscionable conduct – where alleged unconscionable conduct was constituted by a “course of conduct” of disparate acts – alleged failure of primary judge properly to address the pleaded claim – adequacy of reasons

CONSUMER PROTECTION – harassment or coercion – whether correspondence following sale of caravan park amounted to harassing or coercive conduct – where primary judge had found that no damage had resulted from the alleged misconduct

Legislation Cited:

Australian Consumer Law, Sch 2 of the Competition and Consumer Act 2010 (Cth), ss 18, 20, 21, 22A, 50, 237

Australian Securities and Investments Commission Act 2001 (Cth), Part 2 Div 2, ss 12CA, 12CB

Conveyancing Act 1919 (NSW), s 66G

Corporations Act 2001 (Cth), ss 232, 233, 442C, 1324

Defence Service Homes Act 1918 (Cth), s 4

Local Court Act 2007 (NSW), s 34A

Real Property Act 1900 (NSW), s 42

Residential (Land Lease) Communities Act 2013 (NSW), s 8

Retirement Villages Act 1999 (NSW), s 40

Trade Practices Act 1974 (Cth), s 51AC

Uniform Civil Procedure Rules 2005 (NSW), r 14.8

Cases Cited:

ACCC v Lux Distributors Pty Ltd [2013] FCAFC 90

ACCC v Quantum Housing Group Pty Ltd (2021) 285 FCR 133; [2021] FCAFC 40

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Details
AGLC
McMillan v Coolah Home Base Pty Ltd [2024] NSWCA 138
Case
[2024] NSWCA 138
Decision Date

CaseChat Overview and Summary

The appeal concerned a dispute between purchasers of shares in a company that owned a caravan park and the company itself. The purchasers claimed they had acquired an equitable interest in specific long-term sites within the park through their shareholding. This claim was not challenged on appeal. The purchasers also alleged that representations were made to them that they were buying the sites as land, in addition to shares in the company, and sought specific performance of these alleged agreements. The company was subsequently placed into liquidation, and the caravan park was sold to another company.

The legal issues before the court included whether the primary judge erred in rejecting the purchasers' claims of misleading or deceptive conduct, unconscionable conduct, and harassment or coercion. Specifically, the court considered whether representations made regarding the sale of sites as land, assurances about shareholder approval for park sales, and the status of cabins as fixtures constituted misleading or deceptive conduct. The court also examined whether the primary judge adequately addressed the pleaded claims of unconscionable conduct, which were alleged to arise from a course of disparate acts, and whether correspondence following the sale amounted to harassing or coercive conduct, particularly in light of the primary judge's finding of no resulting damage. Furthermore, the court reviewed the primary judge's findings regarding oppressive conduct under corporations law, including whether the sale of the caravan park itself was found to be oppressive and if the relief ordered was sufficient.

The court found that the purchasers had not established reliance on the alleged representations, which was a necessary element for their claims of misleading or deceptive conduct. The primary judge's reasoning in rejecting these claims was deemed adequate. Similarly, the court upheld the primary judge's findings regarding unconscionable conduct and harassment or coercion, concluding that the purchasers had not demonstrated error in the primary judge's assessment of these matters, including the lack of damage from the alleged misconduct. The court also affirmed the primary judge's findings on oppression, including the conclusion that the sale of the caravan park did not constitute oppressive conduct, and that the relief granted was appropriate.

The appeal was dismissed with costs.

Orders

Orders of the court

1. Appeal dismissed with costs.

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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