Tambree v Travel Compensation Fund

Tambree (the plaintiff) brought proceedings against the Travel Compensation Fund and others, alleging misleading and deceptive conduct in contravention of section 42 of the *Fair Trading Act 1987* (NSW) and a breach of a duty of care. The dispute concerned losses incurred by the plaintiff due to the conduct of a travel agent. The case was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the conduct of the travel agent constituted misleading or deceptive conduct, whether the Fund owed a duty of care to the plaintiff, and if so, whether that duty was breached. A further issue was whether the fact that the travel agent continued to operate unlicensed severed the chain of causation between any breach of duty by the Fund and the plaintiff's loss.

The Court of Appeal found that the conduct of the travel agent did amount to misleading and deceptive conduct. The Court also determined that the Fund owed a duty of care to the plaintiff. However, the Court held that the chain of causation was not severed by the travel agent's continued unlicensed operation. The Court allowed the appeal and cross-appeal, setting aside part of the primary judge's order and substituting a new order in favour of the plaintiff against the fourth and fifth defendants for a sum of $13,320 plus interest, totalling $17,536. The respondent, the Travel Compensation Fund, was ordered to pay the appellant's and cross-appellant's costs of the appeal and cross-appeal.