State of New South Wales v RT & YE Falls Investments Pty Ltd

The Court of Appeal of New South Wales considered an appeal by the State of New South Wales against RT & YE Falls Investments Pty Ltd (referred to as "FI"). The dispute arose from a compensation scheme under which the State acquired and disposed of cattle. FI alleged that representations made by the State regarding the likelihood of approval for a proposal, which led FI to believe it was safe to proceed, created an estoppel. FI also brought claims under the Fair Trading Act, contract, and negligence.

The central legal issues before the Court of Appeal were whether the State's representations gave rise to an estoppel, whether the State was bound by the Fair Trading Act in its dealings concerning the cattle compensation scheme, and whether FI's claims in contract and negligence were valid. Specifically, the Court had to determine if the State, by acquiring and disposing of cattle under the compensation scheme, was "carrying on a business" for the purposes of the Fair Trading Act, and if the representations made by the State amounted to a binding promise or assurance that would found an estoppel.

The Court of Appeal found that the State was not carrying on a business in its acquisition and disposal of cattle under the compensation scheme, and therefore was not bound by the Fair Trading Act in this context. Furthermore, the Court determined that the representations made by the State did not create an estoppel against it. The Court allowed the State's appeal, setting aside the orders made at first instance. The Court dismissed FI's appeal concerning its claims in contract, estoppel, and under the Fair Trading Act, entering a verdict and judgment for the State on these claims. FI's claim in negligence and all questions of costs for the initial proceedings were remitted for further consideration.