Voss Real Estate P/L v Schreiner & Ors No. Scgrg-97-1456 Judgment No. S6625

The case of Voss Real Estate P/L v Schreiner & Ors involved an appeal by the appellants, who were the defendants in the original proceedings in the Magistrates Court, against a judgment awarding damages to the respondents for misrepresentation. The respondents had purchased a block of six home units from the appellants, who were engaged in the real estate business, and alleged that they had been misled about the council rates applicable to the property. The respondents claimed that the appellants had represented the council rates as being $1,200 per annum, when in fact, they were $2,604 per annum. The primary judge found that the appellants had indeed made a misleading representation and awarded the respondents $10,000 in damages. The appellants challenged the primary judge's assessment of damages, arguing that the respondents had not proven any loss.

The court considered the principles applicable to the assessment of damages in cases of misrepresentation, holding that the proper measure of damages is the difference between the real value of the property acquired and the price paid for it, assessed as at the date of acquisition. The court found that the respondents had failed to prove that the property was not worth the purchase price, as they had not led any evidence of the property's value, despite the appellants tendering a certified extract from the valuation roll that indicated a capital value of $200,000 for the property. The court concluded that, as the respondents had not proven any loss, their claims should have been dismissed. The appeal was allowed, and the court substituted a judgment and order dismissing the respondents' claim.