Hydrocool Pty Limited v Hepburn (No 4) [2011] FCA 495

FEDERAL COURT OF AUSTRALIA

Hydrocool Pty Limited v Hepburn (No 4) [2011] FCA 495 Citation: Hydrocool Pty Limited v Hepburn (No 4) [2011] FCA 495

Parties: HYDROCOOL PTY LIMITED (ACN 067 525 366) v IAIN MACGREGOR HEPBURN, THERMOELECTRIC APPLICATIONS PTY LIMITED (ACN 112 217 124), PETER TERENCE CLARKE, BENJAMIN BANNEY, MONTAG DAVIS, BRETT MANNERS, ROBERT WEYMOUTH, RITA CLARKE, WATER MASTER LIMITED and GARTH CLIFFORD RICHARDSON

File number: NSD 1754 of 2006

Judge: SIOPIS J

Date of judgment: 16 May 2011

Corrigendum: 28 July 2011

Catchwords: EQUITY – fiduciary duties of company director – whether company director breached his fiduciary duty to avoid a conflict between his interest and his duty – whether a senior employee owed a fiduciary duty to the company – whether it was appropriate to apply a more stringent test for causation – whether the loss claimed by the company was caused by the director's breach of fiduciary duty – whether the company is entitled to receive equitable compensation. CORPORATIONS – whether the director improperly used his position to gain an advantage for himself or others - whether the director improperly used information obtained because of his position as a director to gain an advantage for himself and others – whether the director of the company contravened s 182(1) and s 183(1) of the Corporations Act 2001 (Cth) – whether an officer of the company knowingly participated in the director's contravention of s 182(1) and s 183(1) of the Corporations Act – whether the director and the officer should be exonerated under s 1318 of the Corporations Act – whether the company is entitled to compensation under s 1317H of the Corporations Act. COSTS – non-cooperation in a joint approach to experts with a view to narrowing issues for trial – whether indemnity costs should be awarded.