Unit 11 Pty Ltd v Sharpe Partners Pty Ltd [2005] FCA 635

FEDERAL COURT OF AUSTRALIA

Unit 11 Pty Ltd v Sharpe Partners Pty Ltd [2005] FCA 635 COURTS – summary application to strike out a claim for losses allegedly suffered as a result of breach of duty by an auditor – whether the risk to which the applicant was exposed by the breach of duty provided the opportunity for, but did not cause in the required legal sense, the loss suffered – whether the claim of causation was so speculative and conjectural that it should be struck out

Federal Court Rules O 11 r 16

Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd (2001) 208 CLR 199 – cited Man Nutzfahrzeuge Aktiengesellschaft v Freightliner Ltd [2003] EWHC 2245 (Comm) (7 October 2003) – distinguished Sew Hoy & Sons Ltd (In Receivership and In Liquidation) v Coopers & Lybrand [1996] 1 NZLR 392 – distinguished McKellar v Container Terminal Management Services Ltd (1999) 165 ALR 409 – cited Alexander v Cambridge Credit Corporation Ltd (1987) 9 NSWLR 310 – considered March v (E. & M.H.) Stramare Pty Ltd (1991) 171 CLR 506 – applied Medlin v State Government Insurance Commission (1995) 182 CLR 1 – applied Allianz Australia Insurance Limited v GSF Australia Pty Limited [2005] HCA 26 – cited Galoo Ltd (in liq) v Bright Grahame Murray [1994] 1 WLR 1360 – cited Southern Cross Airlines Holdings Ltd v Arthur Andersen & Co [1998] FCA 280 – cited Harris Scarfe Limited (Receivers and Managers Appointed) (in liq) v Ernst & Young (Reg) [2005] SASC 113 – distinguished Sasea Finance Ltd (in liq) v KPMG [2000] 1 All ER 676 – cited Stapley v Gypsum Mines Ltd [1953] AC 663 – cited UNIT 11 PTY LTD (ACN 075 979 556) v SHARPE PARTNERS PTY LTD (ACN 061 707 042) AND DAVID JOHN LAMB VID 1164 OF 2005 MERKEL J 20 MAY 2005 MELBOURNE

IN THE FEDERAL COURT OF AUSTRALIA

VICTORIA DISTRICT REGISTRY VID 1164 OF 2005