Compaq Computer Australia Pty Ltd v Merry, Howard & Ors [1998] FCA 968

FEDERAL COURT OF AUSTRALIA EQUITY – fiduciary duties - whether directors of a company procured breach of fiduciary duty by the company PRACTICE AND PROCEDURE – no case submission – election – in what circumstances is an election required – whether election required when fraud is alleged – standard of proof on a no case submission – whether judge is entitled to evaluate the evidence – whether applicant demonstrated a case to answer TRADE PRACTICES –– misleading and deceptive conduct – whether directors knowingly concerned in a contravention of the Trade Practices Act 1974 (Cth) - what constitutes knowledge for accessorial liability – whether there is misleading conduct when relevant facts are known – representations by silence Trade Practices Act 1974 (Cth) ss 52, 75B Alexander v Rayson [1936] 1 KB 169 mentioned Australian Securities Commission v Macleod (1993) 40 FCR 155 considered and not followed in part Baden Delvaux & Lecuit v Societe General pour Favouriser le Developpement [1983] BCLC 325 mentioned Barnes v Addy (1874) 9 Ch App 244 applied Belmont Finance Corporation Ltd v Williams Furniture (No. 2) [1980] 1 All ER 393 mentioned Birtchnell v Equity Trustees Executors & Agency Co Ltd (1929) 42 CLR 384 mentioned Breen v Williams (1995-1996) 186 CLR 71 followed Carl Ziess Stiftung v Herbert Smith & Co [1969] 2 Ch 276 mentioned Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 mentioned Corporate Affairs Commission v Green (1978) VR 505 mentioned Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31 mentioned Diversified Mineral Resources NL v CRA Exploration Pty Ltd [1995] ATPR 41-381 mentioned Edgar v Farrow Mortgage Services Pty Ltd (in liq) [1992] ATPR 46-096 mentioned Edwards v R (1992) 173 CLR 653 mentioned Futuretronics International Pty Ltd v Gadzhis [1992] 2 VR 217 mentioned Giorganni v R (1985) 156 CLR 473 mentioned Hannah v Stott [1928] VLR 168 mentioned Hocking v Bell (1945) 71 CLR 430 distinguished Humphrey v Collier [1946] VLR 391mentioned International Sales & Agencies Ltd v Marcus [1982] 3 All ER 551 mentioned James v ANZ Bank Group Ltd (1986) 64 ALR 347 mentioned J-Corp Pty Ltd v Australian Builders Labourers Federated Union of Workers (WA) (No. 2) (1992) 38 FCR 458 mentioned Jones v Peters [1948] VLR 331 considered National Mutual Property Services (Australia) Pty Ltd v Citibank Savings Ltd (unreported, Lindgren J Federal Court, 28 May 1998) mentioned Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191 followed Parry v Aluminium Corporation [1940] WN 44 mentioned Pereira v Director of Public Prosecutions (1989) 63 ALJR 1 mentionedProtean (Holdings) Ltd v American Home Assurance Co [1985] VR 187 applied Rasomen Pty Ltd v Shell Company of Australia Ltd (1997) 75 FCR 216 discussed Residues Treatment Trading Co Ltd v Southern Resources Ltd (1989) 52 SASR 54 discussed Rhone-Poulenc Agrochimie SA v Uim Chemical Services Pty Ltd (1986) 68 ALR 77 mentioned Royal Brunei Airlines Sdn Bhd v Ming [1995] 2 AC 378 applied Selangor United Rubber Estates Ltd v Craddock (No 3) [1968] 1 WLR 1555 mentioned Sharp v Hotel International Ltd [1969] VR 103 mentioned Stevenson v Barham (1977) 136 CLR 190 mentioned Tozer Kemsley & Millbourn (Australasia) Pty Ltd v Collier's Interstate Transport Service Ltd (1955-1956) 94 CLR 384 mentioned Trade Practices Commission v Allied Mills Industries Pty Ltd (No. 4) (1981) 37 ALR 225 mentioned Trade Practices Commission v George Weston Foods Ltd (No. 2) (1980) 43 FLR 55 discussed Union Bank of Australia Ltd v Puddy [1949] VLR 242 applied United States Surgical Corporation v Hospital Products International [1983] 2 NSWLR 157 mentioned Wickstead v Browne (1992) 30 NSWLR 1 mentioned William H Muller & Cl Algemeene v Ebbw Vale Steel Iron & Coal Co Ltd [1936] 2 All ER 1363 mentioned Yorke v Lucas 158 CLR 661 mentioned Zaknic Pty Ltd v Svelte Corporation Pty Ltd [1996] ATPR 46-159 mentioned