Daily Insurance: Friday, 1 May 2015 View in browser

A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.

Daily Insurance

Listen to our daily executive summary – 120 seconds
Executive Summary (One Minute Read)
Henderson v McSharer (FCA) - consumer law - unconscionable conduct and deceit by provider of business consultancy services - declarations and orders
Millington v Waste Wise Environmental Pty Ltd (VSC) - damages - motor vehce collision - failure to properly apply compensatory principle - breach of “once-and-for-all” rule - misapplication of law relating to mitigation of loss - appeal allowed
Scott v Second Skin Pty Ltd (WASC) - costs - indemnity costs sought on basis of improper or unreasonable conduct - application dismissed
Summaries With Link (Five Minute Read)
Henderson v McSharer [2015] FCA 396
Federal Court of Australia
Gilmour J
Consumer law - deceit - commercial dishonesty - applicants conducted sheep farming enterprise - applicants were in financial difficulty - applicants claimed first respondent induced them to accept him as provider of business consultancy services and to transfer flock of sheep to a company controlled by him - applicants claimed first respondent engaged in misleading or deceptive conduct in contravention of s18 Competition and Consumer Act 2010 or unconscionable conduct in contravention of s21 Australian Consumer Law - ss12CA, 12CB & 12DA Australian Securities and Investments Commission Act 2001 - held: first respondent represented he had capacity to assist applicants in ways beyond actual capacities - first respondent engaged in misconduct for personal financial advantage - applicants relied on first respondent’s false representations to engage his services and transfer flock of sheep which was then sold with applicants never receiving proceeds - unconscionable conduct and tort of deceit established - loss and damage established - declarations and orders
Millington v Waste Wise Environmental Pty Ltd [2015] VSC 167
Supreme Court of Victoria
Croft J
Damages - motor vehicle collision - appeal from final orders in Magistrate’s Court - Court ordered appellant to pay amount to respondent together with costs and interest  stayed for 30 days - orders further provided further that on or before certain date respondent was to pay certain amount back to appellant - whether award for damages should be GST inclusive - mitigation - taxable supply - s109 Magistrates’ Court Act 1989 - held: Magistrate failed to properly apply compensatory principle - orders were in breach of “once-and-for-all” rule - Magistrate misapplied law relating to mitigation of loss - appeal allowed - orders to be brought in to give effect to reasons.
Scott v Second Skin Pty Ltd [2015] WASC 126
Supreme Court of Western Australia
Pritchard J
Indemnity costs - Court made orders by consent that legal and beneficial owner of one of two equal shares in first defendant company and various ancillary orders - plaintiff sought indemnity costs against defendant on basis company’s conduct was unreasonable - whether cause of action hopeless - held: Court not satisfied indemnity costs should be ordered as mark of disapproval for improper or unreasonable conduct - application dismissed.


By George Herbert
1                                                  Who is the honest man?
                            He that doth still and strongly good pursue,
                            To God, his neighbour, and himself most true:
                                      Whom neither force nor fawning can
                            Unpin, or wrench from giving all their due.
2                                                  Whose honesty is not
                            So loose or easy, that a ruffling wind
                            Can blow away, or glittering look it blind:
                                      Who rides his sure and even trot,
                            While the world now rides by, now lags behind.
3                                                  Who, when great trials come,
                            Nor seeks, nor shuns them; but doth calmly stay,
                            Till he the thing and the example weigh:
                                      All being brought into a sum,
                            What place or person calls for, he doth pay.
4                                                  Whom none can work or woo
                            To use in any thing a trick or sleight;
                            For above all things he abhors deceit:
                                      His words and works and fashion too
                            All of a piece, and all are clear and straight.
5                                                  Who never melts or thaws
                            At close temptations: when the day is done,
                            His goodness sets not, but in dark can run:
                                      The sun to others writeth laws,
                            And is their virtue; Virtue is his Sun.
6                                                  Who, when he is to treat
                            With sick folks, women, those whom passions sway,
                            Allows for that, and keeps his constant way:
                                      Whom others’ faults do not defeat;
                            But though men fail him, yet his part doth play.
7                                                  Whom nothing can procure,
                            When the wide world runs bias from his will,
                            To writhe his limbs, and share, not mend the ill.
                                      This is the Marksman, safe and sure,
                            Who still is right, and prays to be so still.