S Changizi v H Rizaie [2021] NSWSC 613

Supreme Court New South Wales

Medium Neutral Citation: S Changizi v H Rizaie [2021] NSWSC 613 Hearing dates: 11-14 May 2021; 18 May 2021; 20 May 2021 Date of orders: 31 May 2021 Decision date: 31 May 2021 Jurisdiction: Equity - Corporations List Before: Black J Decision: Plaintiff fails in his claim for breach of fiduciary duties. Defendant fails in his cross-claim in misleading and deceptive conduct. Parties to make submissions as to costs. Catchwords: CONSUMER LAW — Misleading or deceptive conduct — Reliance upon misleading representations — Representation as to acquisition and contribution of assets into the company — Where representation not falsified. EQUITY — Fiduciary duties — Conflict of interest and duty — Where director alleged to have burnt down the business premises — Where such finding was a necessary step to finding breach of fiduciary duties. Legislation Cited: - Evidence Act 1995 (NSW), s 140 - Competition and Consumer Act 2010 (Cth) – Schedule 2, ss 18, 131A, 236 - Corporations Act 2001 (Cth), ss 181, 182, 183, 1041H Cases Cited: - Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 - Australian Competition and Consumer Commission v Fisher & Paykel Customer Services Pty Ltd [2014] FCA 1393 - Australian Competition and Consumer Commission v Jewellery Group Pty Ltd (2012) 293 ALR 335; [2012] FCA 848 - Australian Competition and Consumer Commission v Telstra Corporation Ltd (2007) 244 ALR 470; [2007] FCA 1904 - Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640 - Bell v Lever Brothers Ltd [1932] AC 161 - Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 - Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 - Clarence Property Corp Ltd v Sentinel Robina Office Pty Ltd [2019] 1 Qd R 144; [2018] QSC 095 - Forty Two International Pty Ltd v Barnes (2014) 97 ACSR 450; [2014] FCA 85 - Links Golf Tasmania Pty Ltd v Sattler (2012) 90 ACSR 288; [2012] FCA 634 - London & Mashonaland Exploration Co v New - Mashonaland Exploration Co [1891] WN 165 - MG Corrosion Consultants Pty Ltd v Gilmour (2012) 202 FCR 354; (2012) 88 ACSR 170; [2012] FCA 383 - Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449; [1992] HCA 66 - Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191; [1982] HCA 44 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Re European Metal Recyclers Pty Ltd (in liq) (dergd) [2018] NSWSC 946 - Redmond Family Holdings v GC Access Pty Ltd [2016] NSWSC 796 Texts Cited: - M Christie, "The Director's Fiduciary Duty not to Compete" (1992) 55 MLR 506 Category: Principal judgment Parties: Sam Changizi (Plaintiff/Cross-Defendant) Hussain Rizaie (Defendant/Cross-Claimant) Representation: Counsel: A J Bulley (Plaintiff) N Carney (Defendant)