Transglobal Capital Pty Ltd v Yolarno Pty Ltd

Transglobal Capital Pty Ltd (the appellant) appealed a decision of the Supreme Court of New South Wales concerning allegations of misleading or deceptive conduct against Yolarno Pty Ltd (the respondent). The dispute centred on representations made by the respondent to the appellant.

The primary legal issues before the Court of Appeal were whether the appellant had been misled or deceived by the respondent's conduct, and whether the appellant had relied upon that conduct. Specifically, the court considered whether the existence of doubts about the accuracy of a representation by the recipient negated a claim of misleading or deceptive conduct, and whether a corporation's reliance on conduct could be established even if the individual holding the majority of its voting shares was not convinced by that conduct.

The court reasoned that the mere fact that a person to whom a representation is made harbours doubts about its accuracy does not, in itself, mean that they have not been misled or deceived. Similarly, the court held that a corporation's reliance on conduct can be established even if the majority shareholder is not convinced. The court found that the appellant had indeed relied upon the respondent's conduct.

The appeal was dismissed with costs.