Re: JAD INTERNATIONAL PTY. LTD. And: INTERNATIONAL TRUCKS AUSTRALIA LIMITED No. S G33 of 1991 FED No. 642 Trade Practices - Contract
COURT
IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIAN DISTRICT REGISTRY GENERAL DIVISION O'Loughlin J.(1)
CATCHWORDS
Trade Practices - misleading or deceptive conduct - statements relating to age, history and quality of an engine in a heavy duty commercial vehicle - whether statements amounted to a representation or a term of a contract - whether a right of rescission arose - whether applicant accepted the vehicle - time within which rescission is available.
Contract - representation or a term of the contract - whether applicant accepted the goods - whether a right of rescission arose - time within which rescission is available.
HEARING
ADELAIDE
#DATE 21:8:1992
Counsel for the Applicant: Mr R.J. Whitington
Solicitors for the Applicant: Sykes Bidstrup
Counsel for the Respondent: Mr N.J.T. Swan
Solicitors for the Respondent: Finlaysons
ORDER
THE COURT ORDERS THAT:
1. Judgment be entered for the applicant on its claim in the sum of $19,000 inclusive of costs.
2. The purported rescission by the cross-respondent of the agreement to buy the Kenworth Truck was void and of no legal force or effect and doth declare accordingly.
3. The question of costs be adjourned for argument to a date to be fixed.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
JUDGE1
In October 1989, the applicant, JAD International Pty. Ltd., purchased, for the purpose of resale, a 1983 Kenworth Aerodyne K120 truck ("the Kenworth") for $86,000 from the respondent, International Trucks Australia Limited. Both the respondent and the applicant have been at all material times engaged in the business of buying and selling such trucks.
This litigation has arisen as a consequence of statements attributed to an employee of the respondent, the witness Mr Davis. It was said that, prior to the purchase, he misrepresented the age, history and quality of the engine that was installed in the Kenworth at the time of the applicant's purchase. The applicant has, as a consequence, claimed that the respondent engaged in conduct that was misleading or deceptive or likely to mislead or deceive, contrary to the provisions of s.52 of the Trade Practices Act 1974 (Cth) ("the Act"); it has further claimed that the respondent falsely represented that the Kenworth was of a particular quality, contrary to the provisions of s.53 of the Act. As a result, the applicant has claimed damages which it says are recoverable pursuant to s.82 of the Act together with interest and costs.
The applicant has also claimed that the challenged conduct of the respondent was a misrepresentation that amounted to the breach of an implied condition of the agreement for the sale and purchase of the Kenworth. Claiming that this breach lawfully entitled it to rescind, the applicant alternatively sought an order confirming that in October 1990, twelve months after the purchase of the Kenworth, it lawfully rescinded the contract. I…
Grounds of appeal
[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.
[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.
[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.
Consideration
[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.
[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.
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Details
AGLC
Roberts v Repatriation Commission [1992] FCA 642
Case
[1992] FCA 642
Decision Date
CaseChat Overview and Summary
The case of Roberts v Repatriation Commission involved a dispute between the applicant, Roberts, and the Repatriation Commission over the sale of a heavy-duty commercial vehicle. The central issue was whether certain statements made by the Repatriation Commission regarding the age, history, and quality of the engine constituted misleading or deceptive conduct under the Trade Practices Act, and if such conduct could lead to a right of rescission. The court was also required to determine whether Roberts had effectively accepted the vehicle, thereby limiting his right to rescind the contract.
The legal issues before the court encompassed whether the statements made by the Repatriation Commission were representations or terms of the contract. If they were representations, the court needed to examine if they were misleading or deceptive under the Trade Practices Act. Furthermore, the court had to consider whether Roberts' acceptance of the vehicle precluded him from exercising his right to rescind the contract within a reasonable time. The court also needed to clarify the precise period within which Roberts could validly rescind the agreement.
The court determined that the statements made by the Repatriation Commission were indeed misleading or deceptive representations, thus constituting misleading or deceptive conduct under the Trade Practices Act. The court held that Roberts had not accepted the vehicle, preserving his right to rescind the contract. However, the court ruled that the attempted rescission by the Repatriation Commission was void as it occurred outside the allowable time frame. Consequently, the court found in favor of Roberts, awarding him $19,000 inclusive of costs and declaring the purported rescission void.
The court further directed that the matter of costs be adjourned for argument to a later date. The judgment effectively voided the attempted rescission by the Repatriation Commission and awarded Roberts the specified sum. The final orders included entering judgment for Roberts in the amount of $19,000 inclusive of costs, declaring the purported rescission void, and adjourning the question of costs for further argument.
Orders
Orders of the court
THE COURT ORDERS THAT:
1. Judgment be entered for the applicant on its claim in the sum of $19,000 inclusive of costs.
2. The purported rescission by the cross-respondent of the agreement to buy the Kenworth Truck was void and of no legal force or effect and doth declare accordingly.
3. The question of costs be adjourned for argument to a date to be fixed.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.