Sanguine Technology Pty Ltd v Abacus Calculators (WA) Pty Ltd

Sanguine Technology Pty Ltd sought damages against Abacus Calculators (WA) Pty Ltd for breaches of s 52 of the Trade Practices Act 1974 (Cth) (TPA) in relation to the sale of a business. The claim for damages was made pursuant to s 82 of the TPA for alleged misrepresentations made by Abacus, which Sanguine claimed were a contravention of s 52 of the TPA. Additionally, Sanguine sought damages for a breach of warranty that Abacus would disclose all relevant information about the business. The Federal Court was required to determine whether the misrepresentations were relied upon and if any damages were warranted under s 82 of the TPA.

The Court considered whether the alleged misrepresentations were relied upon and if there was any reliance on those misrepresentations by Sanguine. It found that the misrepresentations were corrected and relevant information was provided before the final purchase and settlement of the business. The Court held that even if the misrepresentations were established, there was no reliance on them. Therefore, no damages were awarded under s 82 of the TPA. Furthermore, the Court dismissed Sanguine's claim for breach of warranty as there was no evidence to suggest that Abacus failed to disclose all relevant information.

The Court ordered that Sanguine's proceeding be dismissed and judgment be entered in favour of Abacus for the sum of $414,857, made up of $321,971 plus interest of $92,886 calculated at the rate of 10% from 7 May 2007 to the date of the judgment. The Court also ordered that Sanguine pay Abacus's costs of the proceeding and that Abacus pay Abacus's costs of the cross-claim. Finally, the Court granted liberty to Abacus to apply for an order that the second and third respondents pay Abacus's costs on an indemnity basis.