Vic: Spruiker not ready for trial: lawyer

AAP General News (Australia)
12-24-2003
Vic: Spruiker not ready for trial: lawyer

By Cath McAloon

MELBOURNE, Dec 24 AAP - Melbourne property spruiker Henry Kaye was not ready for a
trial into his alleged deceptive and misleading conduct, his lawyer told the Federal Court
today.

Australia's competition watchdog has taken Mr Kaye and his company National Investment
Institute (NII) to court alleging he claimed in print, radio and internet advertisements
that his property investment strategies could "turn ordinary Australians into millionaires".

The Australian Competition and Consumer Commission (ACCC) says he has no grounds for his claims.

Lawyer Caroline Kenny, for Mr Kaye, used a directions hearing in Melbourne today to
seek an adjournment of the trial, which had been set down for January 28.

Mrs Kenny said since the ACCC launched proceedings against Mr Kaye, his time and efforts
had been diverted on other matters.

She said an administrator had been appointed to NII and the Australian Securities and
Investments Commission (ASIC) had launched legal action to have a receiver appointed to
another of Mr Kaye's companies, Property Corporate Services (PCS).

Mr Kaye had also been the subject of ongoing ASIC investigations into alleged breaches
of undertakings, Mrs Kenny said.

She said Mr Kaye viewed this case as particularly important, given indications that
a class action may be launched by students of his failed NII, some of whom paid up to
$55,000 for his controversial training programs.

"Any findings made in this proceeding can be used for the purposes of subsequent proceedings,"

Mrs Kenny said.

"Given the indications that class action will be commenced, there's a great need to
make sure the case is properly prepared," she said.

Mrs Kenny also sought to have parts of the ACCC's case, relating to radio advertisements,
struck out.

She argued that transcripts of the radio advertisements made no reference to the "investment
strategies" that the ACCC alleged Mr Kaye was promoting.

David Collins for the ACCC agreed to amend the claim in relation to the radio advertisements
to avoid it being struck out.

Justice Alan Goldberg did not formally grant the requested adjournment but gave orders
for parties to set out interlocutory matters.

He said he expected the trial to proceed on March 9 next year.

AAP clm/ce/jv/br

KEYWORD: KAYE

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