Zibara v Ultra Management (Sports) Pty Ltd [2021] FCAFC 4

FEDERAL COURT OF AUSTRALIA

Zibara v Ultra Management (Sports) Pty Ltd [2021] FCAFC 4 Appeal from: Ultra Management (Sports) Pty Ltd v Zibara [2020] FCA 31 Ultra Management (Sports) Pty Ltd (No 2) v Zibara [2020] FCA 402

File number: QUD 102 of 2020

Judgment of: MCKERRACHER, DERRINGTON AND ANDERSON JJ

Date of judgment: 2 February 2021

Catchwords: EQUITY – liability under the second limb of Barnes v Addy – whether it was open to the primary judge to find that the Third Appellant was liable to account to the Respondent on the pleadings and facts found by the primary judge – whether there was a need to expressly plead that the First and Second Appellants had engaged in a "dishonest and fraudulent design" – open to the primary judge to find that Third Appellant was liable to account to the Respondent COSTS – discretion as to costs – whether primary judge's discretion miscarried in ordering that the Appellants pay, on an indemnity basis, the Respondent's costs of the days of the hearing of the trial – primary judge's decision as to costs was within the bounds of the primary judge's discretion as to costs

Legislation: Competition and Consumer Act 2010 (Cth) s 76 Corporations Act 2001 (Cth) ss 79, 182, 183 Evidence Act 1995 (Cth) s 140 Federal Court of Australia Act 1976 (Cth), s 43 Federal Court Rules 2011 (Cth), rr 16.02(1)(a), 40.02

Cases cited: AHRKalimpa Pty Ltd v Schmidt (No 3) [2019] VSC 197 Ancient Order of Foresters in Victoria Friendly Society v Lifeplan Australia Friendly Society (2018) 265 CLR 1 Argyle Building Services Pty Ltd v Mark Franek & Ors [2020] VSCA 196 Aucare Dairy (Aust) Pty Ltd v Huang (No 3) [2019] FCA 412 Australian Careers Institute Pty Ltd v Australian Institute of Fitness Pty Ltd (2016) 340 ALR 580 Australian Competition and Consumer Commission v Online Dealz Pty Ltd [2016] FCA 732 Babcock and Brown DIF III Global Co-Investment Fund, LP v Babcock and Brown International Pty Limited (No 2) [2017] VSC 556 Baden v Société Générale pour Favoriser le Développment du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Banque Commerciale SA, En Liquidation v Akhil Holdings Ltd (1990) 169 CLR 279 Barnes v Addy (1874) LR9ChApp 244 Bell Lawyers Pty Ltd v Pentelow [2019] HCA 29 Betfair Pty Ltd v Racing New South Wales [2010] FCAFC 133 Brecher v Barrack Investments Pty Limited (No 2) [2020] FCA 911 Briginshaw v Briginshaw (1938) 60 CLR 336 Chickabo Pty Ltd v Zphere Pty Ltd [2019] VSC 73 Clifton (Liquidator) v Kerry J Investment Pty Ltd trading as Clenergy (No 2) [2020] FCAFC 112 Colgate-Palmolive Co v Cussons Pty Ltd (1993) 46 FCR 225 CMS Dolphin Ltd v Simonet [2001] 2 BCLC 704 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 Cook v Deeks [1916] 1 AC 554 Cornerstone Property and Development Pty Ltd v Suellen Properties Pty Ltd [2014] QSC 265 Dare v Pulham (1982) 148 CLR 658 Dowling v Fairfax Media Publications Pty Ltd (No 2) [2010] FCAFC 28 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Gencor ACP Ltd v Dalby [2000] 2 BCLC 734 Gould v The Mount Oxide Mines Ltd (in liq) (1916) 22 CLR 490 Green & Clara Pty Ltd v Bestobell Industries Pty Ltd (No 2) [1984] WAR 32 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6 Hamilton v Whitehead (1988) 166 CLR 121 Harstedt Pty Ltd v Tomanek [2018] VSCA 84 Hart Security Australia Pty Ltd v Boucousis (2016) 339 ALR 659 Hasler v Singtel Optus Pty Ltd [2014] NSWCA 266 Holdway v Arcuri Lawyers [2009] 2 Qd R 18 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 House v The King (1936) 55 CLR 499 In the matter of Australian Worldwide Pty Ltd [2019] NSWSC 1475 In the matter of Elsmore Resources Ltd [2016] NSWSC 856 In the matter of Punters Show Pty Limited [2019] NSWSC 1777 Kazar (Liquidator) v Kargarian; In the Matter of Frontier Architects Pty Ltd (In Liq) [2011] FCAFC 136 Latoudis v Casey (1990) 170 CLR 534 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 Morad v El-Ashey (No 2) [2017] FCA 1612 Mudgee Dolomite & Lime Pty Ltd v Robert Francis Murdoch; In the matter of Mudgee Dolomite & Lime Pty Ltd [2020] NSWSC 1510 Northern Territory v Sangare (2019) 265 CLR 164 Prestige Lifting Services Pty Ltd v Williams [2015] FCA 1063 Prysmian Cavi E Sistemi S.R.L. v Australian Competition and Consumer Commission [2018] FCAFC 30 Queensland Mines Ltd v Hudson [1975-1976] ACLC 28-658 Re Galtari Pty Ltd (in liq) [2018] NSWSC 917 Re Macadam; Dallow v Codd [1946] Ch 73 Rogers v MHM Metals Ltd [2015] FCAFC 67 Royal Brunei Airlines Sdn Bhd v Philip Tan Kok Ming [1995] 2 AC 378 Simmons v New South Wales Trustee and Guardian [2014] NSWCA 405 Sucrogen Australia Pty Ltd v Westpac Banking Corporation [2012] 2 Qd R 175 Timber Engineering Co Pty Ltd v Anderson [1980] 2 NSWLR 488 Warman International Ltd v Dwyer (1995) 182 CLR 544 Westpac Banking Corporation v Bell Group Ltd (In liq) (No. 3) [2012] WASCA 157 Yorke v Lucas (1985) 158 CLR 661