Balmedie Pty Ltd v Russo [1998] FCA 980

FEDERAL COURT OF AUSTRALIA EQUITY – appeal from interlocutory orders striking out amended statement of claim and staying proceedings – Letter of Credit issued for repayment of financial investments in production of a film – whether money paid for issue of Letter of Credit was to be held in trust – whether there was evidence from which a resulting constructive trust or trust based on the principles in Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 could be established – whether statement of claim pleading causes of action based in whole or in part on a contention that payment was impressed with a trust were untenable and should be struck out CONTRACTS – joint venture - whether joint venturers liable for the debts, obligations and defaults of the "joint venture vehicle" company – whether an agency relationship existed between joint venture vehicle and joint venturers.

Federal Court Act 1977 (Cth): s 24(1A)

Federal Court Rules: O11 r 16, O20 r2

Dey v Victorian Railways Commissioners (1949) 78 CLR 62 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Salomon v A Salomon & Company Limited [1897] AC 22 BP Refinery (Westernport) Pty Limited v Shire of Hastings (1977) 180 CLR 266 FAI Insurance Co Ltd v Savoy Plaza Pty Ltd [1993] 2 VR 343 Spunwill Pty Ltd v BAB Pty Ltd (1994) 36 NSWLR 290 Décor Corporation Pty Ltd v Dart Industries Inc (1991) 33 FCR 397 Re Armstrong, deceased [1960] VR 202 Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 Fancourt v Mercantitle Credits Ltd (1983) 154 CLR 87 Webster v Lampard (1993) 177 CLR 598 BALMEDIE PTY LTD & ANOR v NICOLA RUSSO & ORS VG 716 of 1996 RYAN, WHITLAM & GOLDBERG JJ MELBOURNE 19 AUGUST 1998