Trade Practices Commission v C.G. Smith Pty Ltd

The Federal Court of Australia was called upon to decide whether Ian Fairweather could be discharged from an undertaking he had given to the Court in proceedings brought by the Trade Practices Commission against C.G. Smith Pty Limited, Ian Fairweather and Roger Gregory Matson. Fairweather sought to be discharged from the undertaking on the basis that it had been given by his counsel, Mr Hilbery, without his knowledge or consent. The central legal issue was whether counsel had the authority to give the undertaking on behalf of Fairweather. The Court found that Mr Hilbery was justified in relying on instructions from Matson and Mrs Coonan, the principal of the firm of solicitors acting for the respondents, to give the undertaking. Fairweather was aware that undertakings would need to be given as part of the settlement and left it to the others to secure the best terms. The Court held that the undertaking was given within the authority of counsel and dismissed Fairweather's application with costs.