In the matter of Northern Energy Corporation Limited [2020] NSWSC 1073

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Northern Energy Corporation Limited [2020] NSWSC 1073 Hearing dates: 3 August 2020 Date of orders: 14 August 2020 Decision date: 14 August 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Claim for privilege upheld. Catchwords: PRIVILEGE – legal advice privilege – communications with third parties at [45] – dominant purpose – waiver – limited waiver at [60] – disclosure to auditors at [66] – onus – evidentiary requirements. Objection to production of documents by auditor to liquidators – claim for privilege by third party – common law applies. Liquidators of two subsidiaries conducting examinations – orders for production to auditors of parent company – accounts prepared on consolidated basis – disclosure of legal advice by parent company to auditor on a confidential basis – review of legal advice referred to in audit letter – whether disclosure of legal advice by parent company to auditor amounted to waiver to auditor only, waiver to subsidiaries, or waiver generally. WAIVER – limited waiver – disclosure of privileged material to auditors ordinarily limited waiver only – no waiver by parent company to subsidiaries – no waiver generally. Legislation Cited: Civil Procedure Act 2005 (NSW), s 98 Corporations Act 2001 (Cth), ss 301(1), 308, 311, 323, 323A and 323B Evidence Act 1995 (NSW), ss 122, 131A Cases Cited: 789Ten Pty Ltd v Westpac Banking Corporation Ltd (2005) 215 ALR 131; [2005] NSWSC 123 Archer Capital 4A Pty Ltd as trustee for the Archer Capital Trust 4A v Sage Group plc (No 2) (2013) 306 ALR 384; [2013] FCA 1098 Australian Rugby Union Limited v Hospitality Group Pty Limited [1999] FCA 1061; (1999) 165 ALR 253 AWB Limited v Cole (No 5) [2006] FCA 1234; (2006) 155 FCR 30 AWB Ltd v Cole [2006] FCA 571; (2006) 152 FCR 382 Baker v Campbell [1983] HCA 39; (1983) 153 CLR 52 British Coal Corporation v Dennis Rye Ltd (No 2) [1988] 3 All ER 816; [1988] 1 WLR 1113 Cantor v Audi Australia Pty Ltd [2016] FCA 1391 Commissioner of Australian Federal Police v Propend Finance Pty Ltd [1997] HCA 3; (1997) 188 CLR 501 Commissioner of Taxation (Cth) v Pratt Holdings Pty Ltd [2005] FCA 1247; (2005) 225 ALR 266 Commissioner of Taxation v Rio Tinto Limited (2006) 151 FCR 341; [2006] FCAFC 86 Daniels Corporation International Pty Ltd v Australian Competition and Consumer Commission [2002] HCA 49; (2002) 213 CLR 543 Director of Public Prosecutions (Cth) v Kinghorn; Kinghorn v Director of Public Prosecutions (Cth) (2020) 379 ALR 345; [2020] NSWCCA 48 DSE (Holdings) Pty Limited v InterTAN Inc [2003] FCA 1191; (2003) 135 FCR 151 Esso Australia Resources Ltd v Commissioner of Taxation (Cth) [1999] HCA 67; (1999) 201 CLR 49 Expense Reduction Analysts Group Pty Limited v Armstrong Strategic Management and Marketing Pty Limited [2013] HCA 46; (2013) 250 CLR 303 Farrow Mortgage Services Pty Limited (in liq) v Webb (1996) 132 FLR 466; (1996) 14 ACLC 1240; (1996) 39 NSWLR 601 Federal Commissioner of Taxation v Spotless Services Ltd [1996] HCA 34; (1996) 186 CLR 404 Financial Reporting Council Limited v Sports Direct International Plc [2018] EWHC 2284 (Ch); [2019] 2 All ER 974 Financial Reporting Council Limited v Sports Direct International Plc [2020] 2 WLR 1256; [2020] EWCA Civ 177 Gardner v Irvin (1878) LR 4 Ex D 49 Goldberg v Ng [1995] HCA 39; (1995) 185 CLR 83 Grant v Downs (1976) 11 ALR 577; (1976) 135 CLR 674 Hancock v Rinehart [2016] NSWSC 12 Hastie Group Limited (in liq) v Moore (t/as Deloitte Touche Tohmatsu) [2016] NSWCA 305; (2016) 339 ALR 635 Hellenic Mutual War Risks Association (Bermuda) v Harrison (The "Sagheera") [1997] 1 Ll Rep 160 Mann v Carnell [1999] HCA 66; (1999) 201 CLR 1 Mitsubishi Electric Australia Pty Limited v Victorian WorkCover Authority (2002) 4 VR 332; [2002] VSCA 59 National Crime Authority v S (1991) 100 ALR 151, 159 New Cap Reinsurance Corporation Ltd (In Liq) v Renaissance Reinsurance Ltd [2007] NSWSC 258 Nine Films and Television Pty Ltd v Ninox Television Ltd [(2005) 65 IPR 442 Osland v Secretary, Department of Justice (2008) 234 CLR 275; [2008] HCA 37 Parry-Jones v Law Society [1969] 1 Ch 1 Pricewaterhouse v BCCI Holdings (Luxembourg) SA [1992] BCLC 583 R (Morgan Grenfell and Co Limited) v Special Commissioner of Income Tax [2003] 1 AC 563; [2002] UK HL 21 R v Derby Magistrates' Court; Ex parte B [1995] 4 All ER 526; [1996] AC 487 R v Kinghorn (No 4) [2019] NSWSC 1420 Rawlinson & Hunter Trustees SA v Akers [2014] 4 All ER 627; [2014] EWCA Civ 136 Rawlinson and Hunter Trustees SA v Akers [2013] All ER (D) 357 (Jul); [2013] EWHC 2297 (QB) Re Global Advanced Metals Pty Limited [2019] NSWSC 1545 Singtel Optus Pty Ltd v Weston (2011) 81 NSWLR 526; [2011] NSWSC 1083 Telstra Corporation Ltd v Australis Media Holdings (No 2) (1997) 41 NSWLR 346 Thomason v The Council of The Municipality of Campbelltown [(1939) 39 SR (NSW) 347 Westpac Banking Corporation v 789Ten Pty Ltd (2005) 55 ACSR 519; [2005] NSWCA 321 Category: Principal judgment Parties: Robert Hutson (First Plaintiff) Scott Langdon (Second Plaintiff) New Hope Corporation Limited (Applicant/Interested Party) Representation: Counsel: Mr D Cook SC / Mr D Krochmalik (Plaintiffs) Mr J Giles SC / Mr C Mitchell (Applicant/Interested Party)