Rosenbaum v Baidarman (No 2) [2021] NSWSC 574

Supreme Court New South Wales

Medium Neutral Citation: Rosenbaum v Baidarman (No 2) [2021] NSWSC 574 Hearing dates: 25 - 29 May 2020 and 1 - 12 June 2020 Date of orders: 21 May 2021 Decision date: 21 May 2021 Jurisdiction: Equity Before: Williams J Decision: Parties are to bring in short minutes of order giving effect to these reasons, including a declaration that the partnership has dissolved, an order that the partnership business be wound up under the direction of the Court, an order for the taking of partnership accounts and an order for the appointment of a new trustee to two trusts. Catchwords: PARTNERSHIP — oral partnership agreement — dissolution of partnership — winding up of partnership business — taking of partnership accounts — ordinary basis or wilful default — difficulty in identifying assets and liabilities of partnership due to lack of records and conduct of partners — claim for compound interest TRUSTS — application for general administration order — alternative application for appointment of new trustee — applicable principles Legislation Cited: Civil Procedure Act 2005 (NSW), s 100 Corporations Act 2001 (Cth), ss 601AD, 601AE, 601AH Evidence Act 1995 (NSW), s 69 Partnership Act 1892 (NSW), ss 5, 20, 24, 26, 29, 39, 44 Trustee Act 1925 (NSW), s 70 Uniform Civil Procedure Rules 2005 (NSW), rr 20.14, 46.7, 54.3 Cases Cited: Australia Capital Financial Management Pty Ltd v Linfield Developments Pty Ltd [2017] NSWCA 99 Bloomingdale Holdings Pty Ltd v 87 Stevedore Street Pty Ltd (2010) 6 ASTLR 271 Capital Securities XV Pty Ltd (formerly known as Prime Capital Securities Pty Ltd) v Calleja [2018] NSWCA 26 Cappe v Tsung [2018] NSWCA 86 Commissioner of State Revenue v Rojoda Pty Ltd (2020) 376 ALR 378 Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599 Fox v Percy (2003) 214 CLR 118 Foxman v Credex National Australian Trade Exchange Pty Ltd (in liq) [2007] NSWSC 1422 Fulham Partners LLC v National Australia Bank Limited [2013] NSWCA 96 Gooley v Motasea Pty Ltd [2015] NSWCA 31 Harris v Digital Pulse Pty Ltd (2003) 56 NSWLR 298 Hung v Warner; In the matter of Bellpac Pty Ltd (Receivers and Mangers appointed) (In liquidation) [2013] FCAFC 48 Hungerford v Richardson [2018] NSWSC 1543 Lithgow City Council v Jackson (2011) 244 CLR 352 Massoud v NRMA Insurance Limited (2005) 62 NSWLR 653 McLean v Burns Philp Trustee Co Pty Ltd (1985) 2 NSWLR 623 McNee v Lachlan McNee Family Maintenance Pty Ltd [2020] VSC 273 Meehan and Others v Glazier Holdings Pty Ltd (2002) 54 NSWLR 146 Mudocca v Murdocca (No. 2) [2002] NSWSC 505 Northwest Capital Management v Westgate Capital Limited (2012) 264 FLR 424 Re Cenco Holdings Pty Ltd (2005) 53 ACSR 484 Re Gaydon [2001] NSWSC 473 Re Hillsea Pty Ltd [2019] NSWSC 1152 Re Tebbs (deceased) [1976] 2 All ER 858 Sidameneo (No 456) Pty Ltd v Alexander (No 2) [2012] NSWCA 87 Sze Tu v Lowe (2014) 89 NSWLR 317 Torlonia v Wright [2016] NSWSC 1139 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Clarry, D., The Supervisory Jurisdiction Over Trust Administration (Oxford University Press, 2018) Meagher Gummow & Lehane's Equity Doctrines and Remedies (5th ed, 2015) The Law of Trusts: Ford and Lee (Thompson Reuters, 2019) Category: Principal judgment Parties: Eduard Rosenbaum (First Plaintiff / First Cross-defendant) Ironwell Pty Ltd (Second Plaintiff / Second Cross-defendant) Alla Rosenbaum (Third Cross-defendant) Tanya Rosenbaum (Fourth Cross-defendant) Jacob Baidarman (Defendant / Cross-claimant) Ella Baidarman (Fifth Cross-defendant) Dabjade Pty Ltd (Sixth Cross-defendant) Excelsea Pty Ltd (Seventh Cross-defendant) Representation: Counsel: Ms F Rogers (Plaintiffs / First to Fourth Cross-defendants) Mr D Smallbone (Defendant / Cross-claimant)