Underquoting: Real estate agency Fletcher and Parker to fight 'off the rails' case

A real estate agency accused of extensive underquoting by Consumer Affairs Victoria has told a judge it will fight the case.

Fletcher and Parker (Balwyn) Pty Ltd, accused of misleading conduct on 25 properties, complained the case was “off the rails” at the Federal Court on Friday morning.

Barrister Daniel Star said the regulator had filed the case as “a Christmas present” and was “asking everything in the world”, with a “truckload of affidavits”.

“We’re not lying down. We need to see the material, then form a view – are we to contest the 25 cases, 13, or one?” Mr Star said.

“We want to know the fighting ground – why it is that those representations are false or misleading?”

He said the 25 accusations of misleading conduct were very serious, especially after Hocking Stuart Richmond was fined $30,000 per property for 11 breaches in December, and ordered to pay costs.

“We’re facing $1.1 million,” he said.

Mr Star said that in one affidavit, a client complained of irrelevant matters such as advertising costs and described an agent as ego-driven and petulant.

“We are wanting key facts, not a bundle thrown at us.”

Consumer Affairs has collected evidence of underquoting through advertising, emails sent to potential purchasers and conversations. A couple of thousand pages document the case, including transcripts of examinations of staff.

In one conversation with a client, an agent gave an opinion about the property market.

Mr Star said: “It’s one thing to be wrong and it’s another thing to be misleading.”

Justice Bernard Murphy replied: “If you’re wrong 25 times, one starts to wonder.”

The judge said that Consumer Affairs’ case did have a “kitchen sink” look about it, ordering the agency deliver its points of claim next month.

Mr Star anticipated a lengthy contest, raising the example of well-known agency Gary Peer, whose 2005 trial for underquoting on a single property took two days.

A 10-day trial has been set down for September 18, where it is anticipated vendors will give evidence and be cross-examined.

Hocking Stuart Doncaster (Manningham Property Group) is also before the Federal Court for underquoting, with a three-day contest set down for December 4.