Direct Share Purchasing Corporation Pty Ltd v Australian Unity Funds Management Limited [2011] FCA 996

FEDERAL COURT OF AUSTRALIA

Direct Share Purchasing Corporation Pty Ltd v Australian Unity Funds Management Limited [2011] FCA 996 Citation: Direct Share Purchasing Corporation Pty Ltd v Australian Unity Funds Management Limited [2011] FCA 996

Parties: DIRECT SHARE PURCHASING CORPORATION PTY LTD v AUSTRALIAN UNITY FUNDS MANAGEMENT LIMITED, R SCHUURMAN AND ASSOCIATES PTY LTD (TRADING AS SEAFORD PANELS S/F) and ROBERT SCHUURMAN

File number: VID 1117 of 2010

Judge: DODDS-STREETON J

Date of judgment: 30 August 2011

Catchwords: COSTS – Plaintiff issued proceeding under s 1071F of the Corporations Act 2001 (Cth) against responsible entity to compel it to register transfer of units to plaintiff from unitholder, who instructed responsible entity not to register – Unitholder issued separate proceeding denying validity of its contract with plaintiff – Plaintiff and unitholder settled the later proceeding and responsible entity registered transfer of units – Plaintiff sought dismissal of s 1071F proceeding without determination of merits – Whether or to what extent plaintiff should pay costs of responsible entity – Principles applicable to award of costs where proceeding dismissed in such circumstances – Whether responsible entity would successfully have defended s 1071F proceeding had it proceeded to trial – Whether responsible entity should have adopted stance of a submitting defendant

Legislation: Corporations Act 2001 (Cth) s 1071F Federal Court of Australia Act 1976 (Cth) s 43(2) Federal Court Rules O 22 r 3, O 22 r 2(1)(d), O 62 r 26