FEDERAL COURT OF AUSTRALIA
Ripani v Century Legend Pty Ltd [2022] FCA 242
File number: VID 266 of 2020 Judgment of: ANASTASSIOU J Date of judgment: 18 March 2022 Catchwords: CONSUMER LAW – misleading or deceptive conduct – contract of sale for apartment sold ‘off-the-plan’ – representations conveyed by a computer generated image known as a render – render contained in marketing brochure, exhibited at display suite and on website for development – representations also made by real estate agent on behalf of developer – whether representations sufficiently precise to found contravention of s 18 of the Australian Consumer Law (ACL) – relevance of inscription ‘artist impression’ on render – relevance of disclaimers and exclusion clauses – whether representations were made as to a future matter without reasonable grounds – whether representations misleading or deceptive or likely to mislead or deceive – whether Applicants relied on representations in entering into contract of sale – whether misleading representation cured by statements made by architect prior to Applicants entering into contract of sale – relevance of objective circumstances to evidence of disinterested witness
CONSUMER LAW – remedies – whether appropriate to grant relief in the nature of statutory rescission pursuant to s 237 and s 243(a) of ACL – whether Applicants suffered or were likely to suffer loss or damage because of contravening conduct of developer – loss in value of real estate property – loss or damage suffered by Applicants – whether entry into contract of sale constituted loss or damage in particular circumstances – discretionary considerations – alternative claim for rescission in equity – differences between rescission in equity and statutory relief in the nature of rescission – contract of sale rescinded
Legislation: Competition and Consumer Act 2010 (Cth), Sch 2, Australian Consumer Law, ss 4, 18, 236, 237, 243 Cases cited: A H McDonald & Co Pty Ltd v Wells [1931] HCA 24; 45 CLR 506
Alati v Kruger [1955] HCA 64; 94 CLR 216
Australian Competition and Consumer Commission v GlaxoSmithKline Consumer Healthcare Australia Pty Ltd [2019] FCA 676; 371 ALR 396
Australian Competition and Consumer Commission v TPG Internet Pty Ltd [2013] HCA 54; 250 CLR 640
Bonham as Trustee for the Aucham Super Fund v Iluka Resources Ltd [2022] FCA 71
Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; 218 CLR 592
Campbell v Backoffice Investments Pty Ltd [2009] HCA 25; 238 CLR 304
Cargill Australia Ltd v Viterra Malt Pty Ltd (No 28) [2022] VSC 13
Clark Equipment Australia Ltd v Covcat Pty Ltd (1987) 71 ALR 367
Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31
Harvard Nominees Pty Ltd v Tiller (No 4) [2022] FCA 105
Harvard Nominees Pty Ltd v Tiller [2020] FCAFC 229; 282 FCR…
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- Case
- [2022] FCA 242
- Decision Date
CaseChat Overview and Summary
The court found that the representations made by Century Legend were misleading and deceptive, as they did not accurately reflect the actual design and features of the apartment. The court noted that the disclaimer stating the render was an ‘artist impression’ and the exclusion clauses were not specific enough to negate the misleading effect of the representations. The court also concluded that the Ripanis had relied on the representations in entering into the contract. Furthermore, the court determined that the misleading representations were not cured by subsequent statements made by the architect before the contract was signed. The court held that the representations were actionable under section 18 of the ACL and also constituted misrepresentation in equity.
In terms of remedies, the court found it appropriate to grant relief in the nature of statutory rescission pursuant to sections 237 and 243(a) of the ACL. The court rescinded the contract of sale for the apartment, ordered the return of the bank guarantee provided by the Ripanis, and directed that damages and pre-judgment interest be paid to the Ripanis. The court also ordered that the costs of the proceeding be paid by Century Legend. This comprehensive relief aimed to restore the Ripanis to their pre-contractual position and compensate them for the loss and damage suffered due to Century Legend's misleading conduct.
Orders
Orders of the court
1. The contract of sale for the purchase by the Applicants of apartment 14.01 at 20-21 Queens Road, Melbourne, made on or about 29 August 2017, be rescinded.
2. By no later than 4:00pm on 25 March 2022, the Respondent return to the Applicants the bank guarantee provided on behalf of the Applicants by the Bank of Melbourne on 29 August 2017 in lieu of a deposit.
3. The Respondent pay damages and pre‑judgment interest to the Applicants in an amount to be determined in accordance with paragraph 4 of these orders.
4. By no later than 4:00pm on 25 March 2022, the parties file:
(a) an agreed minute of the sums payable for damages and pre-judgment interest in accordance with these reasons for judgment; or
(b) failing agreement, the parties are to file separate minutes and submissions, limited to four pages, concerning their respective calculations of damages and pre-judgment interest payable in accordance with these reasons.
5. The Respondent pay the Applicants’ costs of and incidental to the proceeding, to be agreed and in default of agreement assessed on a standard basis.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
Background
Background to the litigation
Evidence
Evidence Before The Court
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Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
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