EK Nominees Pty Ltd v Woolworths Ltd Case Summary

In the recent decision in EK Nominees Pty Ltd v Woolworths Ltd [2006] NSWSC 1172, non-disclosure by Woolworths was held to amount to misleading and deceptive conduct in contravention of s 52 of the Trade Practices Act 1974 (Cth) (TPA). This case is a reminder of the importance of disclosure in commercial negotiations where there is a reasonable expectation that disclosure will be made and the risk of silence in these cases.

Woolworths was interested in establishing a supermarket in Auburn, New South Wales. Since at least 1995, it had engaged in negotiations with a third party regarding a preferred site in Queen Street, Auburn. Negotiations for this site subsequently failed.

In 1998, Woolworths commenced negotiations for a supermarket site with the plaintiff, EK Nominees, a developer and the owner of a site in Auburn Road, Auburn.