FEDERAL COURT OF AUSTRALIA Econ Holdings Pty Ltd v Sims Lockwood & Partners [1999] FCA 368 ECON HOLDINGS PTY LTD T/AS BILLBUSTERS HOLDINGS v SIMS LOCKWOOD & PARTNERS (A FIRM) N 3025 OF 1999 EMMETT J 26 MARCH 1999 SYDNEY IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY N 3025 OF 1999 IN THE MATTER OF BILLBUSTERS PTY LTD (ACN 081 250 099) BETWEEN: ECON HOLDINGS PTY LTD T/AS BILLBUSTERS HOLDINGS Applicant AND: SIMS LOCKWOOD & PARTNERS (A FIRM) Respondent JUDGE: EMMETT J DATE OF ORDER: 26 MARCH 1999 WHERE MADE: SYDNEY THE COURT ORDERS THAT: 1. The Application be dismissed with costs. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY N 3025 OF 1999 IN THE MATTER OF BILLBUSTERS PTY LTD (ACN 081 250 099) BETWEEN: ECON HOLDINGS PTY LTD T/AS BILLBUSTERS HOLDINGS Applicant AND: SIMS LOCKWOOD & PARTNERS (A FIRM) Respondent JUDGE: EMMETT J DATE: 26 MARCH 1999 PLACE: SYDNEY EX TEMPORE REASONS FOR JUDGMENT 1 This matter came before me on 9 March 1999 after an ex parte application was made on 8 March 1999 by Mr Miles Smith ("Mr Smith"), purporting to act on behalf of two companies known as Billbusters Pty Limited and Econ Holdings Pty Limited. On 8 March 1999, I gave leave for these proceedings to be commenced. An application, expressed to be made under section 474(1) of the Corporations Law,was filed on 9 March 1999 by Econ Holdings Pty Limited ("the applicant"). 2 On 9 March 1999, I heard argument from Mr Petrucco who is a partner with the Argyle Partnership, a firm of solicitors who act for Sims Lockwood & Partners ("Sims Lockwood"). Sims Lockwood is the firm of which the liquidator of Billbusters Pty Limited is a member. On that occasion, Mr Smith said that he wished to join other parties to these proceedings. Accordingly, I gave leave to the applicant to file an amended application joining such as it was advised of: Billbusters Pty Limited; the liquidator of Billbusters Pty Limited; and Remuneration Planning Corporation Pty Limited as respondents to these proceedings. I stood the matter over for further directions today. At the same time, I also directed the applicant to file either a statement of claim or an affidavit setting out its claims against each of those respondents. 3 Nothing has been filed. The application does not name a respondent. It is addressed to: "The respondent, the Argyle Partnership Level 1, 44 Market Street Sydney." 4 Mr Smith tells me that he intended the respondent to this application to be the firm, Sims Lockwood. The Argyle Partnership was referred to, he believed, as the address for service of Sims Lockwood. I have no evidence before me as to the basis for that assertion. Nevertheless, Mr Petrucco has been here on two occasions representing either his firm, the Argyle Partnership, or the firm Sims Lockwood, if Sims Lockwood is properly a party to the proceedings. 5 The application as it presently stands cannot be allowed to proceed. Mr Smith now tells me that it may be that he will seek to join the landlord of the premises which were previously occupied by Billbusters Pty Limited. The essence of his claim, as the present application indicates, is for damages for trespass and detinue and possibly for the return of chattels alleged to have been converted. If that is the nature of the claim, it does not appear to have any federal element which would justify retaining the proceedings in the Federal Court. In any event, it is not a proceeding which should be brought in the winding-up of Billbusters Pty Limited. 6 In the circumstances, I consider that it is appropriate to dismiss the present application with costs. I certify that the preceding six (6) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Emmett. Associate: Dated: 26 March 1999 The Applicant was represented by Mr Miles Smith Solicitor for the Argyle Partnership and Sims Lockwood: The Argyle Partnership Date of Hearing: 26 March 1999 Date of Judgment: 26 March 1999