Semrani v Manoun

Case [2001] NSWCA 337


CITATION: Semrani v Manoun; Williams v Manoun [2001] NSWCA 337
FILE NUMBER(S): CA 40200/00; 40206/00
HEARING DATE(S): 10 April 2001
JUDGMENT DATE:
4 October 2001

PARTIES :


Paul Joseph Semrani
William Noel Williams
Khalil Ibrahim Manoun
JUDGMENT OF: Mason P at 1; Beazley JA at 2; Ipp AJA at 117
LOWER COURT JURISDICTION : Supreme Court - Equity Division
LOWER COURT
FILE NUMBER(S) :
4564/96
LOWER COURT
JUDICIAL OFFICER :
Davies AJ
COUNSEL: Semrani: D K Jordan
Williams: N G Rein
Manoun: R S Gibb SC/R Weaver
SOLICITORS: Semrani: Reedmans
Williams: Tress Cocks & Maddox
Manoun: H K Husseini & Co
CATCHWORDS: Misleading and deceptive conduct - Silence - Causation - Damages
LEGISLATION CITED: Fair Trading Act 1987 (NSW), ss 42, 68
Trade Practices Act 1974 (Cth), ss 52, 82
CASES CITED:
March v Stramare (E. & M.H.) Pty Limited (1991) 171 CLR 506
Chappel v Hart (1998) 195 CLR 232
Wardley Australia v Western Australia (1992) 175 CLR 514
Kimberley NZI Finance Ltd v Torero Pty Ltd (1989) ATPR 46-054
Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31
Winterton Constructions Pty Ltd v Hambros Australia (1992) 39 FCR 97
Warner v Elders Rural Finance (1993) 41 FCR 399
Yorke v Lucas (1985) 158 CLR 661
Puxu Pty Ltd v Parkdale Custom Built Furniture Pty Ltd (1982) 149 CLR 191
Gurr & Gurr v Forbes (1996) 80 ATPR 41-491
Jones v Dunkel (1959) 101 CLR 298
Holloway v McFeeters (1956) 94 CLR 470
Millicent District Council v Altschwagen (1993) 50 ALR 173
State Rail Authority of New South Wales v Earthline Constructions Pty Limited (1999) 73 ALJR 306
Henville v Walker [2001] HCA 52
Como Investments Ltd (in liq) v Yenald Nominees Pty Ltd (1997) 19 ATPR 41-550
Waimond Pty Ltd v Byrne (1989) 18 NSWLR 642
Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494
DECISION: Appeals dismissed with costs

    IN THE SUPREME COURT
    OF NEW SOUTH WALES
    COURT OF APPEAL
    CA 40200/00
    CA 40206/00
    EQ 4564/96

MASON P


BEAZLEY JA


IPP AJA


    Thursday, 4 October 2001
    WILLIAM NOEL WILLIAMS v KHALIL IBRAHIM MANOUN
    PAUL JOSEPH SEMRANI v KHALIL IBRAHIM MANOUN & ANOR


    FACTS
    The respondent (Manoun) was the business partner of one of the appellants (Semrani). The other appellant (Williams) had acted from time to time for Semrani as his accountant. He was also the accountant for the venture between Semrani and Manoun.

    Semrani was in the business of steel frame manufacturing and house construction. He had previously been in partnership with Nowra Aboriginal Land Council. That partnership failed, resulting in a receiver/manager being appointed to sell the assets of the partnership other than those in dispute.

    The assets in dispute included the plant and machinery by which the steel frame members were formed. Semrani claimed that he was the owner of the machinery and the inventor of the method of manufacture of the steel frames. However, at the time of trial his patent application was still pending.

    Williams, acting on instructions from…

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AGLC
Semrani v Manoun [2001] NSWCA 337
Case
[2001] NSWCA 337
Decision Date

CaseChat Overview and Summary

The New South Wales Court of Appeal considered an appeal concerning allegations of misleading and deceptive conduct. The appellant, Mr Semrani, alleged that the respondent, Mr Manoun, engaged in such conduct by remaining silent about certain matters during negotiations for the sale of a business. The primary dispute revolved around whether Mr Manoun's silence amounted to a misrepresentation or misleading and deceptive conduct under the *Trade Practices Act 1974* (Cth) (now the *Australian Consumer Law*).

The central legal issues before the Court of Appeal were whether Mr Manoun had a duty to disclose the information that Mr Semrani claimed was withheld, and if so, whether his failure to do so constituted misleading or deceptive conduct. The Court also had to determine whether, assuming misleading conduct occurred, it caused loss to Mr Semrani, and if so, the appropriate measure of damages.

The Court of Appeal affirmed the primary judge's finding that Mr Manoun's silence did not amount to misleading or deceptive conduct. The Court reasoned that for silence to be misleading, there must be a reasonable expectation that disclosure would be made. In this instance, the Court found that the circumstances of the negotiation did not create such an expectation. Furthermore, even if there had been misleading conduct, the Court found that Mr Semrani had not established a causal link between the alleged silence and his loss.

Consequently, the appeals were dismissed with costs.

Orders

Orders of the court

Appeals dismissed with costs

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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