Palmer v Delic (No.2)

Palmer, the plaintiff, brought proceedings against Delic, the defendant, seeking damages for breach of contract and misleading and deceptive conduct. The dispute concerned the sale of a business, specifically a hotel, and the plaintiff alleged that the defendant had misrepresented the business's financial performance and prospects. The matter came before Emmett J of the Supreme Court of New South Wales.

The primary legal issues before the court were whether the defendant had breached the contract for the sale of the business by making misrepresentations, and whether the defendant's conduct in making those representations constituted misleading or deceptive conduct in contravention of the relevant consumer protection legislation. The court was required to determine the truth or falsity of the alleged misrepresentations and their impact on the plaintiff's decision to purchase the business.

Emmett J found that the defendant had made several misrepresentations regarding the hotel's profitability and turnover, which were material to the plaintiff's decision to enter into the contract. His Honour applied the principles of contract law relating to misrepresentation, including the requirement for the representation to be false, material, and relied upon by the representee. Furthermore, Emmett J held that these misrepresentations also constituted misleading and deceptive conduct under the applicable legislation, as they were likely to mislead or deceive a reasonable person in the circumstances. The court considered the evidence presented by both parties, including financial records and testimony, to assess the veracity of the claims made by the defendant.

The court ordered that the plaintiff was entitled to damages for the losses suffered as a result of the breach of contract and the misleading and deceptive conduct.