Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 2)

• Jurisdiction: Australia Federal only
• Court: Federal Court
• Judge: STEWARD J
• Judgment Date: 15 May 2020
• Neutral Citation: [2020] FCA 636
• Date: 15 May 2020

FEDERAL COURT OF AUSTRALIA

Cash Bazaar Pty Ltd v RAA Consults Pty Ltd (No 2) [2020] FCA 636

File number:	VID 1348 of 2017
Judge:	STEWARD J
Date of judgment:	15 May 2020
Catchwords:	CONSUMER LAW – misleading or deceptive conduct – pre-contractual representations – alleged contraventions of s. 18 of the Australian Consumer Law – where first applicant entered into franchising agreements allegedly in reliance on representations made to its sole director and shareholder (the second applicant) with respect to guaranteed income and capital growth – where alleged that first respondent would pay the guaranteed income – where first applicant entered into a shareholders agreement with the second respondent allegedly in reliance on representations made to the second applicant with respect to guaranteed payments – where representations allegedly made by various officers and employees of the first respondent – where first and second respondents ceased making payments to the first applicant – where price of the franchising agreements did not increase – identification of the true nature of the representations – whether representations were as to future matters within the meaning of s. 4 of the Australian Consumer Law – whether respondents had reasonable grounds for making the representations
Legislation:	Competition and Consumer Act 2010 (Cth.) Sch. 2, Australian Consumer Law ss. 2, 4, 18, 236 Corporations Act 2001 (Cth.) s. 1305 Trade Practices Act 1974 (Cth.) s. 51A (repealed)
Cases cited:	Ackers v. Austcorp International Ltd [2009] FCA 432 Aqua-Marine Marketing Pty Ltd v. Pacific Reef Fisheries (Australia) Pty Ltd (No 5) [2012] FCA 908 Australian Competition and Consumer Commission v. ACM Group Limited (No 2) [2018] FCA 1115 Australian Competition and Consumer Commission v. Black on White Pty Ltd (2001) 110 F.C.R. 1 Australian Competition and Consumer Commission v. Woolworths Limited [2019] FCA 1039 Auswest Timbers Pty Ltd v. Secretary to the Department of Sustainability & Environment [2010] VSC 389 Bill Acceptance Corporation Ltd v. GWA Ltd (1983) 50 A.L.R. 242 Butcher v. Lachlan Elder Realty Pty Ltd (2004) 218 C.L.R. 592 Cash Bazaar Pty Ltd v. RAA Consults Pty Ltd [2019] FCA 450 CCP Australian Airships Ltd v. Primus Telecommunications Pty Ltd [2004] VSCA 232 Coles Supermarkets Australia Pty Ltd v. FKP Limited [2008] FCA 1915 Commissioner of Taxation v. The Trustee for the Michael Hayes Family Trust [2019] FCAFC 226 Como Investments Pty Ltd (In liq) v. Yenald Nominees Pty Ltd (1997) 19 A.T.P.R. 41-550 Concrete Constructions Group Ltd v. Litevale Pty Ltd [2002] NSWSC 670; (2002) 170 F.L.R. 290 Crowley v. WorleyParsons Limited [2017] FCA 3 De L v. Director-General, NSW Department of Community Services [No 2] (1997) 190 C.L.R. 207 Director of Consumer Affairs Victoria v. Gibson [2017] FCA 240 Fubilan Catering Services Limited v. Compass Group (Australia) Pty Ltd [2007] FCA 1205 Given v. Pryor (1979) 24 A.L.R. 442 Global Sportsman Pty Ltd v. Mirror Newspapers Pty Ltd (1984) 2 F.C.R. 82 Henville v. Walker (2001) 206 C.L.R. 459 Jones v. Dunkel (1959) 101 C.L.R. 298 Keynes v. Rural Directions Pty Ltd (No 4) [2011] FCA 304 McGrath v. Australian Naturalcare Products Pty Ltd (2008) 165 F.C.R. 230 Miba Pty Ltd v. Nescor Industries Group Pty Ltd (1996) 141 A.L.R. 525 North East Equity Pty Ltd v. Proud Nominees Pty Ltd [2012] FCAFC 1; (2012) 285 A.L.R. 217 Pappas v. Soulac Pty Ltd (1983) 50 A.L.R. 231 Plunkett v. Bull (1915) 19 C.L.R. 544 Prior v. Mole (2017) 261 C.L.R. 265 Rakic v. Johns Lyng Insurance Building Solutions (Vic) Pty Ltd (Trustee) [2016] FCA 430; (2016) 259 I.R. 47 Ransley v. Medical Benefits Fund of Australia Ltd (1980) A.T.P.R. 40-160 R.T. & Y.E. Falls Investments Pty Ltd v. The State of New South Wales [2001] NSWSC 1027 Samsung Electronics Australia Pty Limited v. LG Electronics Australia Pty Limited [2015] FCA 227; (2015) 113 I.P.R. 11 Sanders v. Glev Franchises Pty Ltd [2002] FCA 1332 Seymour Whyte Constructions Pty Ltd v. Ostwald Bros Pty Ltd (in liq) (2019) 99 NSWLR 317 Sykes v. Reserve Bank of Australia (1998) 88 F.C.R. 511 The Republic of Nauru v. WET040 [No 2] [2018] HCA 60; (2018) 93 A.L.J.R. 102 Unilever Australia Ltd v. Beiersdorf Australia Ltd [2018] FCA 2076
Date of hearing:	9-13 December 2019
Date of last submissions:	23 December 2019
Registry:	Victoria
Division:	General Division
National Practice Area:	Commercial and Corporations
Sub-area:	Commercial Contracts, Banking, Finance and Insurance
Category:	Catchwords
Number of paragraphs:	301
Counsel for the Applicants:	Ms. C. H. Sparke, Q.C.
Solicitor for the Applicants:	Regal Lawyers and Advisors
Counsel for the First, Second, Fourth and Sixth Respondents:	The First, Second, Fourth and Sixth respondents did not appear
Counsel for the Third Respondent:	The Third Respondent appeared in person
Counsel for the Seventh and Eighth Respondents:	Mr. M. K. Callanan
Solicitor for the Seventh and Eighth Respondents:	Moore Lawyers

ORDERS

		VID 1348 of 2017
BETWEEN:	CASH BAZAAR PTY LTD (ACN 608 807 647) First Applicant ; RAJESH PATEL Second Applicant
AND:	RAA CONSULTS PTY LTD (ACN 159 658 107) First Respondent ; EXPRESS BUSINESS GROUP MMF VICTORIA PTY LTD (ACN 611 400 152) Second Respondent ; REECE ARCON (and others named in the Schedule) Third Respondent

JUDGE:	STEWARD J.
DATE OF ORDER:	15 MAY 2020

THE COURT ORDERS THAT:

1. The proceeding be dismissed as against the first, second, third, fourth, seventh and eighth respondents.

2. The applicants pay the seventh and eighth respondents’ costs of this proceeding.

3. There be leave for the parties to file within 21 days hereof submissions addressing...