Capital Investments Corporation Pty Ltd v Classic Trading Pty Ltd [2001] FCA 1385

FEDERAL COURT OF AUSTRALIA

Capital Investments Corporation Pty Ltd v Classic Trading Pty Ltd

[2001] FCA 1385

EQUITY – fiduciary duties – conflict of duty and interest – diversion by director of business opportunity to another company associated with director – whether director resigned prior to engaging in activities contrary to interests of first company – duty of fidelity and loyalty – whether employee and manager owes fiduciary obligations to employer – ancillary liability – rule in Barnes v Addy – whether cross respondents dishonestly aided and abetted, procured or assisted in breach of fiduciary duty

Cheers v El Davo Pty Ltd (In Liquidation) [2000] FCA 310 referred to Knight v Bulic (1994) 13 ACSR 553 referred to Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 at 382, 389, 390-391, 392 applied Humphris v Jenshol (1997) 160 ALR 107 at 118-120 applied Compaq Computer Australia Pty Ltd v Merry (1998) 157 ALR 1 at 21-22 referred to Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 at 68, 96-97, 105, 141 considered Chan v Zacharia (1984) 154 CLR 178 at 198-199 considered Breen v Williams (1996) 186 CLR 71 at 92 106-107, 113, 286-289 considered Regal Hastings Ltd v Gulliver [1967] 2 AC 134 at 139 referred to Pilmer v Duke Ltd (2001) 180 ALR 249 considered Avtex Airservices Pty Ltd v Bartsch (1992) 107 ALR 539 at 561-562 referred to Consul Development Pty Ltd v D P C Estates Pty Ltd (1975) 132 CLR 373 at 394, 396-398, 404-412 referred to Timber Engineering Co Pty Ltd v Anderson (1980) 2 NSWLR 488 referred to Industrial Development Consultants Ltd v Cooley (1972) 1 WLR 443 at 451 referred to Warman International Ltd v Dwyer (1994-95) 182 CLR 544 at 556, 559 considered The Queen v Byrnes (1995) 183 CLR 501 at 516-517 referred to Hancock Family Memorial Foundation Ltd v Porteous (1999) 32 ACSR 124 at 141-142 referred to Giumelli v Giumelli (1999) 161 ALR 473 at 475 referred to Beach Petroleum NL v Abbott Tout Russell Kennedy [1999] 48 NSWLR 1 referred to Colour Control Centre Pty Limited and CCC Enterprises Pty Ltd v Richard Ty & Ors (unreported, Supreme Court of New South Wales, Equity Division, No 1689/93) at [65]-[69] referred to Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 at 82 considered Maryland Metals Inc v Metzner (1978) 382 A (2d) 564 referred to Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371 referred to News Limited v Australian Rugby Football League Limited (1996) 64 FCR 410 at 538, 539-541, 547 considered Securities and Exchange Commission v Chenery Corp 318 US 80 (1943) referred to Phelan v Middle States Oil Corporation 220 F 2d 593 at 602-3 (1955) referred to Reading v Attorney-General [1951] AC 507 at 517 referred to Barnes v Addy (1874) 9 Ch App 244 at 251-252 applied Green and Clara Pty Ltd v Bestobell Industries Pty Ltd [1982] WAR 1 referred to Re Australian Elizabethan Theatre Trust; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 referred to Commissioner of Taxation v Macquarie Health Corporation Ltd (1999) 88 FCR 451 referred to News Limited v Australian Rugby Football League Limited (1995) 58 FCR 447 referred to