Raider & Raider

The parties to this proceeding were Raider & Raider (the applicant) and the respondent. The applicant sought to have a deed of settlement and release, entered into between the parties, set aside on the grounds of misleading and deceptive conduct under section 52 of the *Trade Practices Act 1974* (Cth) (now section 18 of the *Australian Consumer Law*). The application was heard by Forrest J in the Federal Court of Australia.

The central legal issue before the court was whether the respondent had engaged in misleading or deceptive conduct in contravention of section 52 of the *Trade Practices Act 1974* (Cth) during the negotiations that led to the execution of the deed of settlement and release. Specifically, the court had to determine if representations made by the respondent regarding the financial position of a third party were false or misleading, and if such conduct induced the applicant to enter into the settlement.

Forrest J considered the evidence presented by both parties, including the terms of the deed and the communications that occurred during settlement negotiations. His Honour applied the principles established in cases concerning misleading and deceptive conduct, focusing on whether the representations made by the respondent were factually inaccurate or likely to mislead a reasonable person in the position of the applicant. The court found that the respondent had made representations concerning the financial capacity of the third party that were not supported by evidence and were likely to mislead the applicant into believing the third party was in a stronger financial position than it was. This conduct was found to be misleading and deceptive.

The court ordered that the deed of settlement and release be set aside.