Where a representor's own evidence reveals that they privately regarded an investment as a gamble and knew the business was insolvent, this evidence demonstrates the absence of reasonable grounds for encouraging representations as to future matters, and the representor cannot discharge the onus under s 51A(2) TPA / s 41(2) FTA. A Sanderson or Bullock costs order requires conduct by the unsuccessful defendant that led the plaintiff to sue the successful defendant; the mere conduct giving rise to the unsuccessful defendant's own liability is insufficient. Whether investments were made directly or through an intermediary corporate vehicle is critical to proof of loss in misleading and deceptive conduct claims.
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