Airstrike Industrial Pty Ltd v Robertson [2014] QCATA 43
CITATION: Airstrike Industrial Pty Ltd v Robertson
[2014] QCATA 043
PARTIES: Airstrike Industrial Pty Ltd
(Applicant/Appellant)
v
Charles Robertson
Janice Robertson
(Respondents)
APPLICATION NUMBER: APL144-13
MATTER TYPE: Appeals
HEARING DATE: 5 November 2013
HEARD AT: Brisbane
DECISION OF: Senior Member Oliver
Member Deane
DELIVERED ON: 21 March 2014
DELIVERED AT: Brisbane
ORDERS MADE: 1. The appeal is allowed.
2. The claim against the Claim Fund is
dismissed.
3. Any application for costs including
submissions and evidence as to costs
is to be filed in the Tribunal and a copy
provided to the other party by 4.00pm
on 28 April 2014.
4. If any application for costs is filed:
a. the other party is to file in the
Tribunal any submissions and
evidence (if any) in response and
provide a copy to the other party by
4.00pm 12 May 2014
b. the application for costs will be
determined on the papers without
an oral hearing unless a party
requests an oral hearing not before
12 May 2014.
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CATCHWORDS: MISREPRESENTATION – FALSE AND
MISLEADING STATEMENTS – whether
express representation or representation by
silence – where licensed real estate agent
made statements which induced the
respondents to purchase an industrial unit –
where representations concerned a
temporary access road to an industrial estate
– where permanent road not constructed –
where respondents had a subjective
understanding of the meaning of temporary to
be ―short term‖ – where no representation
that access was ‗short term‘ – whether it was
open on the evidence to conclude that
temporary meant short term – whether using
the word ―temporary‖ was misrepresentation
when there was no date for the alternate
access to become permanent – where entire
agreement clause in contract for sale –
whether clause applied to defeat claim
against the Fund.
Queensland Civil and Administrative Tribunal
Act 2009 (Qld) s 146
Property Agents and Motor Dealers Act 2000
(Qld) ss 470, 488, 574
Go & MJ Nominees Pty Ltd v Hollywells
Homewares Pty Ltd [2010] QSC 169
Re Demagogue Pty Ltd v Ramensky [1992]
FCA 557
Downey & Anor Carlson Hotels Asia Pacific
Pty Ltd (2005) QCA 199
Commonwealth Bank of Australia v Mehta
(1991) 23 NSWR 84
Kimberly NZI Finance Ltd v Torero Pty Ltd
(1989) ATPR digest 46-054 at 53, 195
Briginshaw v Briginshaw (1938) 60 CLR 336
APPEARANCES and REPRESENTATION (if any):
APPLICANT: Mr Perry QC instructed by Carter Newell,
Lawyers.
RESPONDENT: Mr Steele of Counsel instructed by
McLaughlins, Solicitors
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REASONS FOR DECISION
[1] On 10 April 2013 the Tribunal allowed the Robertsons‘ claim against the
Claim Fund under the Property Agents and Motor Dealers Act 2000 (Qld)
(‗the Act‘) in the sum of $200,000.00. It also found that Airstrike Industrial
Pty Ltd, Shane Airey and Graeme Salt were all liable jointly and severally
to reimburse the Claim Fund in that sum. The claim was allowed because
the Tribunal found that Airstrike, by its agent Mr Salt, made representation
which was false and misleading which induced the Robertsons to
purchase an industrial unit in an industrial estate in Upper Coomera which
was being marketed by Airstrike for the developer Virgo Corporation Pty
Ltd.
[2] This is an appeal by Airstrike against the Tribunal‘s decision. The grounds
of appeal are quite comprehensive but essentially they come down to
whether it was open for the learned Member to find that there was an
express misrepresentation or a misrepresentation by silence by Mr Salt
about the access to the industrial estate from Kristins Lane. Insofar as the
misrepresentation by Mr Salt was said to be express, the Robertsons say
that the representation that the access road to the industrial estate via
Kristins Lane was temporary was false and misleading because Mr Salt
did not have a time frame for the new connection road to the estate from
Days Road to be completed in the future. The misrepresentation by
silence was the failure of Mr Salt to provide further information to the
Robertsons about the ―temporary access‖ to the estate via Kristins Lane,
information about which he had no specific knowledge.
Further Background.
[3] Virgo Corporation was the developer of a large industrial estate at Upper
Coomera, just north of the Gold Coast. To understand the Robertsons‘
complaint it is best to describe how access was to be gained to the
industrial estate at the time the Robertsons inspected the site in mid 2006.
To access the estate one has to travel along Days Road heading in a
generally northerly direction and then turn right onto Kristins Lane. After a
short distance there is right turn into the estate. From Kristins Lane there
is a short connection road to the commencement of the estate over private
land. This access road is not a gazetted road. This then takes one onto
the estate via a road called Sierra Place. The connection road from
Kristins Lane to the estate was the ‗temporary‘ access to the estate at the
time of development. The Robertsons travelled over this road when they
undertook their inspection of the land on which the industrial unit was to be
built.
[4] Along Sierra Place there is a roundabout with Dalton Street to the right of
the roundabout. The Unit ultimately purchased by the Robertsons is on the
right hand side in Dalton Street just south of the roundabout. Dalton Street
continues south parallel with Kristins Lane and then comes to a dead end.
The proposed permanent access to the estate was to be a new road direct
from Days Road to Dalton Street. This proposal is contained in a Decision
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Notice issued by the Gold Coast City Council1 in respect of the approval
for the subdivision.
[5] In May 2006 the Robertsons were looking for suitable premises to open a
fast food takeaway business and had a telephone conversation with
Mr Salt. He told them about the proposed development in the new estate
called Coomera Business Centre off Kristins Lane. He invited the
Robertsons to drive out to inspect the development, which they did. After
this there was a meeting in Mr Salt‘s office at Nerang on 19 July 2006.
[6] In this meeting they had a general discussion and looked at the plans of
the proposed development.2 The Robertsons say they were concerned
about the access to the site because Kristins Lane was shown as a
temporary access road and Dalton Street was shown as a dead end
street. When they asked Mr Salt about this he said, and this is not
contested, that the current access to the estate via Kristins Lane was only
a temporary arrangement, that Dalton Street was going to be extended to
Days Road, when that occurred Kristins Lane would be closed off and
then Dalton Street would provide the only access to the estate.3
This information, Mr Salt says, came from Decision Notices published by
the Gold Coast City Council and the project brief prepared by the
developers. Again there is no suggestion in the Tribunal‘s reasons or the
evidence that this information or knowledge on the part of Mr Salt was not
correct.
[7] The Robertsons then lodged an expression of interest to purchase the unit
in August 2006 and a contract was eventually signed on 18 October 2006.
The Robertsons plead in the statement of claim that ―in reliance on the
inferences drawn from Mr Salt‘s representations‖ they entered into the
contract.
[8] As matters transpired, by February 2011 Dalton Street was still a dead
end and had not been connected to Days Road.
[9] It seems from the parties‘ pleadings, the evidence of the parties and the
findings of the learned Member the only facts in contention are whether
Mr Salt said words to the effect ―once Dalton Road goes through you‘ll be
laughing‖ and that the plans for Days Road were ―in the future‖.
The learned Member made no findings about whether Mr Salt said this but
in any event it is not relevant for the purposes of determining this appeal.
The conduct of the case below.
[10] We should say something about the way the case was conducted in the
Tribunal. There is no provision for formal pleadings in the QCAT Act or
Rules. In Go & MJ Nominees Pty Ltd v Hollywells Homewares Pty Ltd4 it
was held that the rules about a party being bound by the pleaded case do
1 Agreed bundle of documents.
2 Agreed bundle of documents.
3 Defence paragraph 7.
4 [2010] QSC 169.
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not strictly apply in a tribunal. That case concerned findings by the former
Retail Shop Lease Tribunal which went beyond particulars narrowing the
issues in dispute provided by the lessee just prior to the commencement
of the hearing. However, as is apparent here, the Robertsons set out their
case of misrepresentation against Airstrike with some precision in a
―statement of claim‖. This was entirely appropriate, because for a party to
satisfy the Tribunal there is a valid claim on the Claim Fund, the Tribunal
has to be reasonably satisfied5 that Airstrike, though its agent Mr Salt,
engaged in conduct which could amount to a contravention of s 574 of the
Act. If prosecuted a maximum penalty of 540 penalty units could be
imposed.
[11] Therefore, because of the potential punitive consequences if a
contravention was established, the respondents to the proceeding who are
not only potentially liable to a penalty, but also liable to reimburse the
Claim Fund are entitled to know with some degree of particularity what is
alleged against them. The statement of claim filed by the Robertsons does
this and in response to it, Airstrike and Mr Salt filed a defence which again
pleads, with some specificity, the allegations of fact relied upon to contest
that any representation made was not a misrepresentation for the
purposes of s 574.
[12] So it seems reasonable in these circumstances that some regard is had to
each party‘s pleaded case in considering the evidence adduced to
address and support the factual matters asserted in the respective
pleadings. Clearly, here there is at least an evidentiary onus on the
Robertsons to establish the necessary factual basis to satisfy the Tribunal
that a representation was made, either expressly or by silence, and the
representation amounted to a misrepresentation which contravened s 574
of the Act. The section provides
False representations about property
(1) A licensee or registered employee must not represent in any way to
someone else anything that is false or misleading in relation to the
letting, exchange or sale of property.
Maximum penalty—540 penalty units.
[13] If the Tribunal is satisfied there has been a contravention then under s 488
of the Act the Tribunal may allow the claim if it is satisfied on the balance
of probabilities that an event mentioned in s 470 has happened.
[14] The claim was referred to the Tribunal and after a hearing the Tribunal
was satisfied that Airstrike had contravened s 574 by making the
representation about Kristins Lane being a temporary access and made
an order for compensation in the sum of $200,000.00,
5 Briginshaw v Briginshaw (1938) 60 CLR 336.
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The Reasons Below
[15] As there was no real contest as to the circumstances surrounding the
negotiations between the Robertsons and Mr Salt, it was unnecessary for
the learned Member to make any specific finding of fact about these
matters. He proceeded on the basis of the evidence contained in the
―statement of agreed facts and bundle of documents‖6 and the
concessions made in the defence as to what was said by Mr Salt. Based
on the admissions by Mr Salt as to what was said about the access of
Kristins Lane, that is it was temporary, the Robertsons case was that in
these circumstances the statement was misleading and deceptive.
[16] It seems in reliance on what was pleaded in paragraph 19 of the statement
of claim, the learned Member also proceeded on the basis that the
Robertsons claim was predicated on a misrepresentation by silence.7
The matters alleged in that paragraph that should have been disclosed to
the Robertsons:
19. Mr Salt never qualified restricted or limited his statement that Dalton
Road would connect with Days Road at all or by drawing the
Applicant‘s attention to the following facts matters and circumstances:
(a) that there was no actual funded and scheduled local government
proposal to extend Daltons Road to connect with Days road in
existence at the time Mr Salt was making the representations to
the Applicants;
(b) the connection of Dalton Road to Days Road might be
complicated or delayed due to the road being planned to cross
privately owned land;
(c) in order to build the proposed extension of Daltons Road to
connect with Days Road privately owned land would have to be
resumed either in the course of the local government authority
approving development applications on those parcels of land or
by the local government authority undertaking compulsory
acquisition proceedings against the owner‘s of those properties;
(d) if the owners of any of the parcels of land which the proposed
road would have to cross undertook any development or building
that did not require development approval from the local
authority then the proposal to extend Daltons Road to connect
with Days Road would be severely and adversely effected;
(e) the local government authority was relying on contributions from
the owners of the parcels of land which the proposed road would
have to cross to fund construction of the extension of Daltons
Road to connect with Days Road;
(f) if no development activity took place on any of the parcels of
land which the proposed road would have to cross then this was
likely to cause substantial delays to the proposed extension of
Daltons Road to connect with Days Road.
6 Agreed bundle of documents.
7 Reasons [25].
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[17] However the difficulty with this is the allegation following in paragraph 20
of the statement of claim contends that the above matters were ―all
matters that were, or ought to have been, within Mr Salt‘s knowledge‖.
Nowhere is it pleaded, nor is there any evidence of, what he actually knew
and what he ought to have told the Robertsons as opposed to what he
ought to have known. Without this distinction, the pleading on its face, for
the purposes of establishing misrepresentation by silence is obviously
embarrassing.
[18] Be that as it may, the learned Member referred to two cases on
misrepresentation by silence, Go & MJ Nominees Pty Ltd v Hollywells
Homewares Pty Ltd8 and Re Demagogue Pty Ltd v Ramensky,9 the first
where there was a failure to disclose a relevant fact about access to a
shopping centre and the second about the history of a car that had been
submerged in a flood. Both these cases involve relevant facts within the
knowledge of the representor which were not disclosed to the representee.
In dealing with the representation by silence the learned Member made
reference to only one of the alleged factual matters pleaded in
paragraph 19 of the statement of claim to support this conclusion.
In paragraph 31 of the reasons he said Mr Salt should have qualified his
statement by saying that it was unknown when the Days Road connection
would occur because of the need for the owners of the land over which the
road would be constructed to finalise their developments before the road
would be connected.
[19] The difficulty with this conclusion is the evidence of Mr Salt referred to in
paragraph 19 of the reasons, which seemed to be accepted by the
Tribunal, that there was no ―timeframe‖ for the connection. There is little
difference between ―unknown‖ and ―no timeframe‖.
[20] The Tribunal also found there was an express misrepresentation by
Mr Salt. To better understand the learned Members reasoning
paragraphs 30 and 31 of the reasons are set out below:
Mr Salt has in his affidavit provided partial copies of decision notices in
respect of the development which use the word temporary in regard to the
access to the estate from Kristins Lane. The fact that this access is across
private land and is not a made road clearly reinforces the temporary nature
of it. It is also clear from the decision notices that development of this land
and the rest of the land along the Kristins Lane corridor was predicated on
each developer dedicating part of the land for the connector road that is the
Dalton Street to Days Road connections. The statement that the connection
to Kristins Lane is a temporary access road is indeed true but only in
relation to it not being a dedicated road it is not true in a temporal sense.
It is this that makes the statement misleading because Mr and
Mrs Robertson were lead to believe that the access was temporary in
regard to it being short term as in the temporal sense and they associated
its short term nature to the timing of the connection of Dalton Street to
Days Road. Mr Salt has acknowledged that there was no time frame for the
8 [2010] QSC 169.
9 [1992] FCA 557.
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connection of Dalton Street to Days Road and as such he should have
ensured when he spoke to Mr and Mrs Robertson in regard to it that he did
not use terminology which could lead them into error, which according to
Judge McGill makes the representation misleading as mentioned above.
He should have qualified his statement by at least saying that it was
unknown when the connection would occur as it would require other
developers to finalise their developments before the road would be
connected.
[21] The conclusion that the statement is misleading is predicated on the
finding that the Robertsons understood the meaning of ―temporary‖ to be
short term. There is an acceptance that Mr Salt never said the words short
term nor did he say or do anything which would suggest that the access
was short term. The only evidence that could give rise to such an
inference is Mr Salt‘s reference to ―temporary‖ but he also qualified that by
saying there was no ―timeframe‖ for the connection to be constructed.
[22] Having found the use of the word temporary meant short term, the learned
Member was satisfied this was a misrepresentation and therefore the
appellant contravened s 574 of the Act.
[23] With respect to the applicant‘s reliance on clause 13 of the contract which
provides:
13. Representations: The Buyer acknowledges that:
a. The Contact, including the schedules, contains the entire
agreement as concluded between the parties notwithstanding:-
i. any negotiations or discussions before this Contract was
signed:
ii. Anything in any brochure, report, or other document
prepared by the Seller or its Agents for submission to
prospective buyers, and
b. there has not been any inducement to enter into this Contract by
any representation made by or on behalf of the Seller which is
not set out in this Contract.
[24] The Tribunal found that consistent with what was said in Downey & Anor v
Carlson Hotels Asia Pacific Pty Ltd10 that as the contract did not cure the
misrepresentation made by Mr Salt clause 13 was not a bar to the
Robertsons‘ claim.
The evidence about “temporary”
[25] During the hearing Mr Robertson was asked questions about the
conversation he had with Mr Salt about the Dalton Street/Days Road
connection. He agreed that Mr Salt never told him when Dalton Street
would be connected to Days Road, nor did Mr Salt put a timeframe on the
10 (2005) QCA 199.
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connection11 nor did he offer any opinion as to when that was likely to
happen.12
[26] The basis for Mr Robertson‘s belief that the temporary road would be short
term was on his observation of the earthworks being undertaken at the site
and Mr Salt‘s ―manner‖.13
[27] Mr Robertson agreed in cross-examination that he never told Mr Salt that,
on the basis of the conversations between them, he believed that the road
would be built in 6-12 months. This does seem somewhat convoluted,
because Mr Salt never said anything to suggest a timeframe along these
lines was likely to occur. If this was Mr Robertson‘s subjective belief one
has to ask why he did not speak up to seek confirmation from Mr Salt or
the vendor that this was the case. It was obviously important to
Mr Robertson in making a decision about purchasing the unit, but this
opinion he kept to himself.
[28] Mr Salt‘s evidence is also in a similar vein. Apart from his evidence in chief
contained in his written statement and the admissions in the pleadings,
under cross-examination he told counsel for the Robertsons that Dalton
Street would be connected in the future and he did not have a timeframe
for that connection.14
[29] The only conclusion that can be drawn from the conversations between
Mr Salt and Mr Robertson is that, Kristins Lane was temporary, Dalton
Road would be connected to Days Road in the future and that there was
no timeframe for that connection. Unfortunately, it was only
Mr Robertson‘s personal assumption, a subjective opinion, drawn from this
evidence that the connection would be built within 6-12 months of mid
2006.15 There is no direct evidence to support his conclusion.
Applicant’s submission
[30] Because there was no serious dispute about what was said by Mr Salt
about the access to the estate, the applicant submits that Mr Salt, could
not have had any appreciation of what the Robertsons understood his
statements to mean. As he did not hold back any information that was
within his knowledge, any contention that there was a misrepresentation
by a silence is unsustainable. It is submitted that having used the word
―temporary‖ in addition to saying there was ―no timeframe‖ for the
connection to be constructed, there was no need for Mr Salt to qualify or
explain what he meant by these statements. For there to be a
misrepresentation by a silence the representee must establish that there
was some relevant fact or matter within the knowledge of the representor
and the representor chooses not to disclose the fact or matter to create a
false impression.
11 Transcript 33.
12 Transcript 93.
13 Transcript 93.
14 Transcript 49.
15 Transcript 97.
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[31] Examples of this are the cases of Demagogue and Go & MJ Nominees
referred to above. Mr Perry QC, for the applicant, relied on a statement of
Gummow J in Demagogue where His Honour considered the question of
misrepresentation by a silence. He said:
In any case where a failure to speak is relied upon the question must be
whether in the particular circumstances a silence constitutes or is part of
misleading or deceptive conduct. The expanded meaning given by
section 4(2) to ―conduct‖ should not distract attention from the fundamental
issue in the case at hand.
[32] In Commonwealth Bank of Australia v Mehta16 Samuels JA said:
Silence is not misleading only where there is a duty to disclose at common
law or in equity. It may simply be the element in all the circumstances of
the case which renders the conduct in question misleading or deceptive.
[33] In a similar vein in Kimberly NZI Finance Ltd v Torero Pty Ltd17 French J
said with respect to a misrepresentation by silence that:
However, unless the circumstances are such as to give rise to the
reasonable expectation that if some relevant fact exists it would be
disclosed, it is difficult to see how mere silence could support the inference
that the fact does not exist.
[34] Putting the above statements into context here, the fact relied upon, by
the respondents is that a connection road would not be constructed in 6-
12 months and not disclosed. The difficulty is that the fact not disclosed
did not exist and therefore could never have been within the knowledge of
Mr Salt. The contention is that Mr Salt made a misrepresentation by not
telling the respondents a fact that he himself did not know.
[35] On the basis of these authorities, it is submitted that the silence case that
relates to Mr Salt not qualifying or explaining what he meant by the word
―temporary‖ and, as we said, in circumstances where it was never
explained or put to Mr Salt the Robertson‘s understanding of the word
temporary there could be no misrepresentation by silence.
[36] In so far as the applicant‘s liability is based on an express representation,
the express representation was that the access was temporary, meaning
short term. The applicant submits that such a conclusion is not
sustainable on the evidence because Mr Salt‘s unchallenged evidence is
that he said that there was no timeframe, and there was no other objective
evidence to support an inference that temporary meant short term.
Further there is no evidentiary basis to suggest that Mr Salt could have
been expected to know that the Robertsons interpreted his statement
about the Dalton Street/Days Road connection to mean short term.
The fact that he was a real estate agent experienced in the sale of
commercial property18 does not mean that his use of the word temporary
16 (1991) 23 NSWR 84.
17 (1989) ATPR digest 46-054 at 53, 195.
18 Statement of Claim paragraph 21.
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could be taken to mean short term in a ―temporal sense‖ rather that
meaning not permanent.
[37] In addition there was no specific allegation in the statement of claim to the
effect that temporary conveyed the meaning short term and Mr Salt must
have known this. Mr Salt was never cross-examined as to what he
understood the word temporary to mean. In so far as it may be an implied
misrepresentation again it is submitted that such a case is not sustainable
because the learned Member found that the word ―temporary‖ had a
particular meaning, meaning short term and it was Mr Salt‘s obligation, it
seems, to qualify or explain what temporary meant. This then takes one
back to the misrepresentation by silence. The applicant submits for these
reasons that there was no basis upon which the Tribunal could have
found that there was a misrepresentation within the meaning of s 574.
[38] The applicant also relies on clause 13 of the contract of sale which is
commonly referred to as an ―entire contract‖ or ―no representations‖
clause. Not surprisingly the applicant contends that the Robertsons are
bound by this clause in the contract and therefore cannot rely on any
representation made by Mr Salt. It is said the learned Member fell into
error in relying on Downey & Anor v Carlson Hotels Asia Pacific Pty Ltd in
concluding that clause 13 was not a bar to the Robertsons‘ claim as this
case had specific application to claims for misleading and deceptive
conduct under the Trade Practices Act 1974 (Cth).
The Respondents’ submissions
[39] The respondents contend the use of the word ―temporary‖ and the fact
that Mr Salt said there was no timeframe cannot be considered in
isolation. One has to have regard to all of the circumstances to
understand what was meant by using this terminology. A consideration of
the whole of the evidence could only lead to one conclusion that the
connection road would be constructed in the short term and this is what
the learned Member found. In particular reliance is placed on evidence
given by Mr Salt that the road ―was always going to be a temporary
connector – temporary access off Kristins Lane‖;19 ―would be connected in
the future‖;20 ―there was no indication at that time that there was going to
be a delay in that connection‖;21 which clearly suggests that temporary
was used in a temporal sense.
[40] At the hearing of the appeal the submissions of the respondents seemed
to shift ground somewhat to suggest that by saying that the Kristins Lane
was a temporary access was of itself a misrepresentation. It is submitted
as there was no timeframe for the connection road to be constructed, it
could not have been temporary.22 Therefore despite what is pleaded or
found by the learned Member it is now contended that if there was no
19 Transcript page 50.
20 Transcript page 51.
21 Transcript page 57.
22 Transcript of the appeal hearing page 32 line 25.
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timeframe for the construction of the connection road, that is a point in
time when it was going to be constructed, the access could not be said to
be temporary. This is somewhat confusing because the access was in fact
temporary, meaning not permanent, so what was Mr Salt to say about the
access, perhaps nothing at all, if so then given his knowledge this would
no doubt be a misrepresentation by silence. A little more will be said about
this later.
[41] By reference to and reliance on the cases referred to above, that
statement must be considered in the circumstances of the case.
In particular reliance is placed on the statement in Go & MJ Nominees that
the ―relevant circumstances show a need for some qualification to be
attached to that statement‖.23
[42] The respondents submit that a critical aspect of the case is that the
statement was false and misleading because Mr Salt failed to properly
clarify that temporary did not mean in the short term or 6 – 12 months
because he ought to have known this was not the case in the
circumstances. The only sensible way the word temporary could be
construed is in a temporal sense, meaning short term as the learned
Member found.
[43] As for clause 13 of the contract, the respondents submit that not only does
Downey support the conclusions reached, it is the only sensible
application of the principle that a remedial consumer legislation of this kind
cannot be contracted out of.
Discussion
[44] This claim was brought under s 574 of the Act. For a claim against the
fund to succeed the respondents must establish on the balance of
probabilities to the requisite standard24 that the applicant through its agent
Mr Salt, made a representation that was false and misleading in relation to
the sale of the industrial unit at the Coomera Business Park.
[45] As the cases referred to above demonstrate a representation that is false
and misleading can be either an expressed representation or can be a
representation by a silence in not disclosing a relevant fact or matter that
is within the knowledge of the representor. Here there seems to be little
doubt as to what Mr Salt knew about the temporary nature of the access
to the business park. The access from Kristins Lane was temporary or not
permanent and he did not have a timeframe for when the connection road
between Dalton Street and Days Road would be constructed.
[46] The Robertsons contend that the use of the word temporary was false and
misleading because, as the learned Member found, it was a reference to it
not being true in the temporal sense. The mischief in the use of the word
temporary is that it could be understood to mean of short duration but
23 [2010] QCA 368 at [51].
24 Briginshaw v Briginshaw (1938) 60 CLR 336.
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there was no timeframe for the construction of the connection road.
In those circumstances the access from Kristins Lane could not be said to
be of limited duration or temporary. The respondent contends that this is a
finding of fact and the applicant has not established any basis to warrant
the Appeal Tribunal interfering with that finding of fact.
[47] The respondents now say that knowing there was no timeframe for the
construction of the connection road to say it was temporary was false and
misleading. There might be some substance to this argument if it had not
been specifically said, in addition to the use of the word temporary, that
there was no timeframe for it. This can only mean that it will stop being
temporary at some unspecific time in the future.
[48] Temporary must, in the circumstances, be construed having regard to the
whole of the representation made about access to the estate.
The Robertsons knew the access road was not a permanent road at the
time they entered into the contract. They also knew that there was going
to be a connection road but there was no timeframe or indication when
that connection road would be open. To find that Mr Salt should have
realized that they understood temporary, in circumstances where they
also knew there was no timeframe for the permanent connection, meant
short term is a conclusion contrary to the known facts. In these
circumstances temporary has two meanings, firstly, in the temporal sense
as found by the learned Member but also, and secondly being non
permanent access because of the proposed connection to Days Road.
[49] On the basis of the submissions made by the Robertsons the notion that
there was a misrepresentation by silence falls away. Mr Steele, counsel
for the Robertsons conceded as much by contending that the use of the
word ―temporary‖ in the particular circumstances of this case was an
express representation and was false and misleading.25 In so far as it is
said that Mr Salt did not qualify his statement by saying it was unknown
when the connection would occur,26 the evidence demonstrates that he
did because although there was no specific finding, it was not contested
that Mr Salt said there was no timeframe for the connection.27 It would
seem that Mr Salt conveyed all of the information that he had with respect
to the proposed connection road when discussing the purchase with the
Robertsons.
[50] Whether there was a misrepresentation can be tested another way.
The Robertsons complaint is about the use of the word ―temporary‖ in
reference to the Kristins Lane access. If Mr Salt, armed with the
knowledge about how the estate was to be developed, had said nothing
about the access being temporary or not permanent, or that the Days
Road connection road was ultimately going to be the permanent access,
then, in these circumstances, there would justifiable grounds for complaint
about misrepresentation by silence. So, it seems from the Robertsons
25 Hearing transcript page 32 line 25.
26 Reasons paragraph 31.
27 Reasons paragraph 19.
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perspective, Mr Salt would have been the subject of criticism about
anything he said or did not say about the access to the estate.
[51] At the time of signing the contract it is an inescapable conclusion that the
Robertsons were armed with all of the same information as Mr Salt.
This enabled them to make an informed decision about the purchase.
If they subjectively believed that the reference to the temporary road, in
the circumstances of the case, meant short term, it would be
unreasonable to inflict the consequences of that understanding on the
applicant or further to conclude that this meant Mr Salt made false and
misleading statement. This was at the heart of the learned Member‘s
decision.
Conclusion
[52] Once the notion that the word temporary meant short term is removed
from the equation, there could be no finding that any representation that
was said to be false and misleading was made so as to lead to a
conviction under s 574 of the Act.
[53] With respect to whether clause 13 of the contract and whether this
provides a complete release to the applicant, it is unnecessary to decide
that point because of the conclusions reached above. However, it is worth
noting that even though Downey & Anor v Carlson Hotels Asia Pacific Pty
Ltd was a case involving the Trade Practices Act it is difficult to see why it
would not have application to consumer legislation of this type specifically
designed to protect consumers from entering into transactions on the
basis of false and misleading statements. We also observe that Airstrike
was not a party to the contract and therefore cannot see how it could take
advantage this provision in the contract.
[54] The conclusions reached by the learned Member were not open on the
evidence before him. It follows that this constitutes an error of law, leave
to appeal is unnecessary. Mr Salt did not withhold any material fact within
his knowledge which, if known to the Robertsons, may have resulted in a
different outcome for them. The express representation about the
temporary road was true and cannot be said to be false or misleading.
There was no misrepresentation by silence. Therefore the decision below
should be set aside28 and the application for a claim against the Claim
Fund dismissed.
[55] There is a related appeal on the costs decision29 which was consolidated
with this appeal. In view of our decision to dismiss the claim against the
Claim Fund, the costs decision should also be set aside.
[56] The applicant seeks costs of the proceeding in the Tribunal and this
appeal in an amount calculated by reference to the District Court Scale of
Fees applicable to claims involving amounts in contention of in excess of
28 QCAT Act, s 146.
29 APL195-13 appealing the decision of 10 April 2013 [2013] QCAT 149.
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$200,000. It is appropriate to make directions in respect of the issue of
costs.
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Official source: https://www.sclqld.org.au/caselaw/QCATA/2014/043