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[2018] VCAT 97
procedural. The order made on 2 January 2018 was set aside. Proceeding C8200/2017 was struck out. Proceeding C197/2018 was struck out. The Tribunal lacked jurisdiction to hear the defamation claim and the...
A wedding dress designer tried to stop a customer from posting negative reviews on Instagram by getting an injunction from VCAT. The Tribunal initially granted a temporary injunction but then had to decide if it actually had the power to hear the case. The Tribunal decided it did not have jurisdiction. First, the dispute wasn't about the actual supply of the wedding dress (like quality or delivery), but about what the customer posted online, so it wasn't a 'consumer and trader dispute'. Second, even though the posts might have been misleading, the customer wasn't acting 'in trade or commerce'—she was just an unhappy customer, not a business competitor or someone pretending to do business with the designer. Because VCAT only has specific powers given by law, and this case didn't fit those categories, the Tribunal struck out the case and cancelled the injunction. The designer was told to go to the Supreme Court if they wanted to sue for defamation.
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2 cited instruments linked from this judgment.
Question of jurisdiction where the Applicant sued for "defamation" in a broad sense - parties not represented by legal practitioners - words used loosely in the claim "breach of privacy, defamation, criminal acts, and harassing and stalking clients" - Tribunal not assisted by the parties' submissions - Australian Consumer Law and Fair Trading Act 2012 section 182(1) "consumer and trader dispute" - Australian Consumer Law sections 18(1), 236(1) and 237(1) - "in trade or commerce" - Australian Ocean Line Pty Ltd v West Australasian Newspapers Ltd [1983] FCA 66; (1983) 66 FLR 453 - Fletcher v Nextra Australia Pty Ltd [2015] FCAFC 52 - Australian Competition and Consumer Commission v Meriton Property Services Pty Ltd [2017] FCA 1305 - Concrete Constructions (NSW) Pty Ltd v Nelson [1990] HCA 17; (1990) 169 CLR 594 - Houghton v Arms [2006] HCA 59 - TCN Channel Nine Pty Ltd v Ilvariy Pty Ltd [2008] NSWCA 9 - Hearn v O'Rourke [2002] FCA 1179 - Auswest Timbers Pty Ltd v Secretary to the Department of Sustainability and Environment [2010] VSC 389.
Nektaria Pty Ltd v Dimitrijevski (Civil Claims) [2018] VCAT 97
The Respondent on the 3rd 4th 5th 6th 7th and 8th of December 2017 has posted [on social media] false, defamatory [material]. [The] implications are conveyed that I and my company have scammed her out of money $5,000.00 and have left her without a wedding dress. ...
She signed a contract stating her wedding is in 2019 but she claims we have stolen money from her.
These lies have been highly exposed and have caused serious damage physically and emotionally to my company, my current, potential and previous clients, high-profile models, company associates, my staff and myself.
We have also received death threats from her mother which we have reported to the police and 4-10 prank calls daily since the social media posts.
She has posted photos of my face with "scammer" with my models and staff.
She is tagging all my clients to damage my business.
Her mother has also said she will destroy my business if it's the last thing she does.
Until further order the respondent by herself or by any servant or agent must:
(a) refrain from publishing in any manner or medium any reference to the applicant, its directors (including Ms Nektaria Georgys) , employees, associates, customers or suppliers;
(b) not approach, contact or communicate with, any employee, associate, client or supplier of the applicant;
(c) remove from all social media any post or comment made by the respondent or at her directions relating or referring to the applicant, its directors, employees and associates.
(a) its solicitors' letter to Ms Dimitrijevski of 5 December 2017 addressed VCAT's jurisdiction;
(b) in publishing the material on social media Ms Dimitrijevski had breached clauses 6 and 14 of the parties' contract; and
(c) in publishing the material on social media Ms Dimitrijevski had contravened an obligation imposed on her by this text which appears at the foot of Nektaria's emails:
"This document is commercial in confidence. The recipient of this document agrees not to use, disclose, to allow to use or disclosure of the said information to unauthorised parties, directly or indirectly, irrespective of the acceptance or rejection of the presentation or at any time before, during or after an agreement has been reached without prior written consent".
(a) The solicitors' letter did not address jurisdiction, and as stated above it foreshadowed proceedings in the Supreme Court of Victoria.
(b) Clauses 6 and 14 of the contract prohibit the taking of photographs or videos in Nektaria's showrooms, in the process of production or on collection of a gown, or during appointments. The material published on Instagram by Ms Dimitrijevski does not include photographs or videos taken by her. There is a photograph of a model wearing a gown which Ms Georgys said had been taken in Nektaria's showroom, but it is clear that that photograph had been published by Nektaria for marketing purposes and was effectively in the public domain. I would construe clauses 6 and 14 as referring to photographs being taken by Ms Dimitrijevski, and not to apply to the matters of which Nektaria complains.
(c) The footer on emails only purports to apply to information conveyed by Nektaria in the email, and it does not apply to the matters of which Nektaria complains.
(1) In this Chapter a consumer and trader dispute is a dispute or claim arising between a purchaser or possible purchaser of goods or services and a supplier or possible supplier of goods or services in relation to a supply or possible supply of goods or services.
If the supplier has default listed the purchaser with a credit reference agency in relation to a perceived debt owing, VCAT, in addition to declaring that there is no debt owing, may order the supplier to contact the credit reference agency and have the default listing removed from the purchaser's credit record.
Jurisdiction under the Australian Consumer Law - injunction?
Jurisdiction under the Australian Consumer Law - was Ms Dimitrijevski's conduct "in trade or commerce"?
"(I)n his judgment in Concrete Constructions (NSW) Pty Ltd v Nelson [1990] HCA 17; (1990) 169 CLR 594, Toohey J emphasised that, while in most cases, the focus would be on the nature of the business of the party making the representation, [the equivalent of s18 of the ACL] was not so limited; in particular, the section did not, in terms, refer to the trade or commerce of any particular corporation. Accordingly, statements made by a person not ... herself engaged in trade or commerce may answer the statutory expression if, for example, they are designed to encourage others to invest, or to continue investments, in a particular trading entity". (emphasis added)
The real problem involved in the construction of [section 18 of the ACL] does not ... spring from the use of the words "trade or commerce". It arises from the requirement that the conduct to which the section refers be "in" trade or commerce. ... The phrase "in trade or commerce" ... has a restrictive operation. It qualifies the prohibition against engaging in conduct of the specified kind. As a matter of language, a prohibition against engaging in conduct in trade or commerce can be construed as encompassing conduct in the course of the myriad of activities which are not, of their nature, of a trading or commercial character but which are undertaken in the course of, or is incidental to, the carrying on of an overall trading or commercial business.
"in trade or commerce" can be construed as referring only to conduct which is itself an aspect or element of activities or transactions which, of their nature, bear a trading or commercial character. ... (T)he words ... refer to the central conception of trade or commerce and not to the immense field of activities in which corporations may engage in the course of, or for the purposes of, carrying on some overall trading or commercial business.
What the section is concerned with is the conduct of a (person) towards persons, be they consumers or not, with whom it [or those whose interests it represents or is seeking to promote] has or may have dealings in the course of those activities or transactions which, of their nature, bear a trading or commercial character. Such conduct includes, of course, promotional activities in relation to, or for the purposes of, the supply of goods or services to actual or potential consumers, be they identified persons or merely an identifiable section of the public. In some areas, the dividing line between what is and what is not conduct in trade or commerce may be less clear and may require the identification of what imports a trading or commercial character to an activity which is not, without more, of that character
Mr Arms was engaging in trade and commerce under the name "Australian Cellar Door" and by means of the auscellardoor web site. He enlisted WSA to provide services and advice for the purposes of his business. It was the business of WSA to provide such advice and services. It is not the point that Mr Houghton and Mr Student themselves were not business proprietors or that their activities were an aspect or element of the trade or commerce of WSA (and of Australian Cellar Door) but not of "their" trade or commerce. Mr Houghton and Mr Student nevertheless engaged in conduct in the course of trade or commerce and were thus within the ambit of the FT Act
"The High Court has determined that a representation can be made in trade or commerce even though it is not in the trade of the person making the representation, so long as it is in the trade of the person to whom the representation is made" (emphasis added).
"The present matter is, in any event, determined by the fact that, even if the steps taken to procure the involuntary interview ... were not "in trade or commerce" of TCN Nine, the very misrepresentation meant that the conduct did occur "in trade or commerce" of the (builder). I refer to the misrepresentation that the TCN Nine employees were there in order to inquire about procuring services from the respondents for the building of a house" (emphasis added).
representation was not made in trade or commerce. His Honour said the representations concerned "trade and commerce" in the sense that both Monier as vendor, and Auswest as intending purchaser of the timber mill, were both engaged in trade and commerce as timber millers and suppliers. The granting or withholding of a timber licence clearly impinged upon and may have had significant effects in relation to the commercial activities of both. Nevertheless, whilst the representations concerned trade and commerce, they were not made in trade and commerce.
(a) Ms Dimitrijevski is not engaged in the same line of business as Nektaria, either as an associate or a competitor. She was a retail customer, who ordered a gown for her own wedding. In publishing the material, Ms Dimitrijevski did not act in her own trade or commerce. Making the publications was not central to her trading or commercial activities [Hearn v O'Rourke].
(b) Nektaria alleges in a broad way that some persons received the publications in their businesses - "high-profile models" and "company associates" - and that they and Nektaria have suffered damage. Those persons did not receive the publications in the context of investing, or considering whether to continuing to invest in Nektaria [Concrete Constructions, and Houghton]. It seems that putting the allegation at its highest, Nektaria implies that they would have been considering whether to continue trading with Nektaria in small transactions which is a lesser form of engagement.
(c) When the Court in TCN Nine said the journalist's misrepresentation occurred in trade or commerce of the builder, it was because the journalist pretended to inquire about contracting with the builder to build a house_._ Building houses was the builder's trade or commerce. However in making her publications Ms Dimitrijevski was not pretending to inquire about contracting with Nektaria.
[1] Director of Housing v Sudi [2011] VSCA 266, per Warren CJ at [19].
[5] Page 4 of the Application, under the heading "Why do you want these orders?".
[6] Page 3 of the Application, under the heading "The problem with the goods and/or services".
[7] I have corrected the grammar and omitted irrelevant text.
[9] The parties are at loggerheads. Nektaria opposed Ms Grinham's application for leave to represent Ms Dimitrijevski. Ms Dimitrijevski opposed Mr Carlo Boghdavi, who accompanied Ms Georgys, having any speaking role on behalf of Nektaria.
[10] Herald & Weekly Times Pty Ltd v Victoria [2006] VSCA 146.
[11] Sections 19 and 38 of the ACL now limit the right to institute proceedings against the media for breach of section 18(1).
Nektaria Pty Ltd
Dimitrijevski
(1983) 66 FLR 453
(1990) 169 CLR 594
The order made on 2 January 2018 was set aside. Proceeding C8200/2017 was struck out. Proceeding C197/2018 was struck out. The Tribunal lacked jurisdiction to hear the defamation claim and the claim for misleading and deceptive conduct failed because the respondent's conduct was not 'in trade or commerce'.