Termite Resources NL (in liq) v Meadows, in the matter of Termite Resources NL (in liq) [2016] FCA 1171

FEDERAL COURT OF AUSTRALIA

Termite Resources NL (in liq) v Meadows, in the matter of Termite Resources NL (in liq) [2016] FCA 1171 File number: SAD 99 of 2016

Judge: WHITE J

Date of judgment: 29 September 2016

Catchwords: PRACTICE AND PROCEDURE – application to strike out specified paragraphs of statement of claim – whether specified paragraphs of statement of claim disclose a reasonable cause of action – when statement of claim alleges breaches of directors' duties – whether directors are subject to a duty requiring them to not prefer one creditor over another – whether plaintiff has alleged facts from which it could be concluded that it suffered damage – whether failure to allege insolvency means plaintiff cannot establish that the defendants had a duty to consider the interests of creditors – Federal Court Rules 2011 (Cth), r 16.21(1)(e).

Legislation: Corporations Act 2001 (Cth) ss 9, 598, 1317H Federal Court Rules 2011 (Cth) r 16.21(1)(e)

Cases cited: Bell Group Ltd (in liq) v Westpac Banking Corporation (No 9) [2008] WASC 239; (2008) 39 WAR 1 Gambotto v W.C.P. Ltd (1995) 182 CLR 432 Gevena Finance Pty Ltd v Resource & Industry Ltd [2002] WASC 121; (2002) 169 FLR 152 Grove v Flavel (1986) 43 SASR 410 Jeffree v National Companies and Securities Commission [1990] WAR 183 at 187-188 Kalls Enterprises Pty Ltd (in liq) v Baloglow [2007] NSWCA 191; (2007) 63 ACSR 557 Kinsela v Russell Kinsela Pty Ltd (in liq) (1986) 4 NSWLR 722 Linter Group Ltd (in liq) v Goldberg (1992) 7 ACSR 580 Linton v Telnet Pty Ltd (1999) 30 ACSR 465 Mills v Mills (1938) 60 CLR 150 Nicholson v Permakraft (NZ) Ltd (in liq) (1985) 1 NZLR 242 Peters' American Delicacy Co Ltd v Heath (1939) 61 CLR 457 Re New World Alliance Pty Ltd (Receiver and Manager Appointed); Sycotex Pty Ltd v Baseler (No 2) (1994) 51 FCR 425 Ring v Sutton (1980) 5 ACLR 546 Spies v The Queen [2000] HCA 43; (2000) 201 CLR 603 Walker v Wimborne (1976) 137 CLR 1 Winkworth v Edward Baron Development Co Ltd [1986] 1 WLR 1512