Naghten v National Australia Savings Bank Limited; Naghten v National Australia Bank Limited

In *Naghten v National Australia Savings Bank Limited; Naghten v National Australia Bank Limited* [1993] NSWCA 186, the New South Wales Court of Appeal considered appeals by Mr. Naghten against decisions of the Supreme Court of New South Wales concerning his claims against National Australia Savings Bank Limited and National Australia Bank Limited. The dispute centred on allegations of misleading and deceptive conduct and breach of contract relating to financial advice and investment products.

The Court of Appeal was required to determine whether the banks had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in contravention of the *Trade Practices Act 1974* (Cth) and/or the *Contracts Enforcement Act 1984* (NSW). Further issues included whether the banks had breached their contractual obligations to Mr. Naghten and whether any such breaches had caused him loss. The Court also had to consider the appropriate measure of damages, if any, to be awarded.

The Court of Appeal analysed the evidence presented regarding the representations made by the banks' representatives to Mr. Naghten. It applied established principles of Australian consumer protection law, focusing on the objective test of whether the conduct was misleading or deceptive. The Court also examined the terms of the agreements between Mr. Naghten and the banks to ascertain any breaches of contractual duty. The reasoning involved a careful consideration of the foreseeability of loss and the causal link between the alleged conduct and the financial detriment suffered by Mr. Naghten.

The Court of Appeal dismissed Mr. Naghten's appeals, finding that the conduct of the banks, when viewed in its entirety, did not amount to misleading or deceptive conduct. It also found no breach of contract that had caused Mr. Naghten actionable loss. Consequently, the original orders of the Supreme Court were upheld.