Akierman Holdings Pty Limited v Akerman (No 3); In the matter of Akierman Holdings Pty Limited (No 2) [2021] NSWSC 869

Supreme Court New South Wales

Medium Neutral Citation: Akierman Holdings Pty Limited v Akerman (No 3); In the matter of Akierman Holdings Pty Limited (No 2) [2021] NSWSC 869 Hearing dates: 29 January; 18, 19 February 2021; written submissions on costs ending 29 March 2021 Date of orders: 19 February; 19 July 2021 Decision date: 19 July 2021 Jurisdiction: Equity - Corporations List Before: Parker J Decision: See [177]-[180] Catchwords: INTEREST – running account – balance moves from debit to credit due to payments on account – calculation of interest COSTS – party/party – plaintiff company succeeds in three claims for compensation against defendant director for transactions allegedly effected without authority or in breach of duty but fails on fourth – defendant's cross-claim for rectification of share register succeeds but applications to be relieved of consequences of lack or authority or breach of duty fails – distributive application of rule that costs follow the event – "traditional rule" concerning costs of issues arising in claims – whether to make an overall apportionment of costs CORPORATIONS – costs – party/party – proceedings brought by shareholder in company's name under Corporations Act 2001 (Cth), s 237 – where the Court ordered that the shareholder's costs of the s 237 proceedings be the company's costs in the substantive proceedings – company not party to s 237 proceedings and shareholder not party to company proceedings – whether the previous order can now be discharged or varied Legislation Cited: Civil Procedure Act 2005 (NSW), ss 98, 100 Corporations Act 2001 (Cth), ss 236, 237, 240, 241, 242, 247A, 1317S, 1318, 1322 Foreign Corporations (Application of Laws) Act 1989 (Cth), s 7(3) Uniform Civil Procedure Rules 2005 (NSW), rr 36.15, 36.16, 42.1 Cases Cited: Abigroup Ltd v Sandtara Pty Ltd [2002] NSWCA 45 Bailey v Marinoff (1971) 125 CLR 529 Barescape Pty Ltd v Bacchus Holdings Pty Ltd (No 12) [2012] NSWSC 1591 Boateng v Dharamdas [2019] NSWCA 233 Bostik Australia Pty Ltd v Liddiard (No 2) [2009] NSWCA 304 Bowen Investments Pty Ltd v Tabcorp Holdings Ltd (No 2) [2008] FCAFC 107 Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 1159 Cretazzo v Lombardi (1975) 13 SASR 4 Dimos v Willetts (2000) 2 VR 170 DJL v Central Authority (2000) 201 CLR 226 Dodds Family Investments Pty Ltd v Lane Industries Pty Ltd [1993] FCA 259 Dubbo Refrigerating & Co v Rutherford (1898) 14 WN (NSW) 180 Foss v Harbottle (1843) 2 Hare 461 Griffith v Australian Broadcasting Corporation (No 2) [2011] NSWCA 145 HP Mercantile Pty Ltd v Dierickx (No 2) [2012] NSWSC 1430 Huang v Wang [2016] NSWCA 164 In the matter of Akierman Holdings Pty Ltd [2015] NSWSC 1395 Interchase Corporation Ltd v Grosvenor Hill (Queensland) Pty Ltd (No 3) [2003] 1 Qd R 26 James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296 Jones v Curling (1884) LR 13 QBD 262 Knudsen v Kara Kar Holdings Pty Ltd (No 2) (2000) 52 NSWLR 254 McEvoy v Caplan [2010] NSWCA 115 Medway Oil & Storage Co Ltd v Continental Contractors Ltd [1929] AC 88 MG Corrosion Consultants Pty Ltd v Gilmour [2012] FCA 461 Oikos Constructions Pty Ltd v Ostin (No 2) [2021] NSWCA 98 Re Dawson [1966] 2 NSWR 211 Reid Hewitt & Co v Joseph [1918] AC 717 Scarel Pty Ltd v City Loan & Credit Corporation Pty Ltd (1988) 17 FCR 344 Short v Crawley (No 45) [2013] NSWSC 1541 Smith v Madden (1946) 73 CLR 129 Southern Oil Refining Pty Ltd v Hydrodec Australia Pty Ltd (No 2) [2021] NSWSC 336 Tjiong v Tjiong (No 2) [2018] NSWSC 1981 Trade Practices Commission v Nicholas Enterprises Pty Ltd (No 3) (1979) 42 FLR 213 Waters v PC Henderson (Australia) Pty Ltd [1994] NSWCA 338 Wojcic v Incorporated Nominal Defendant (No 2) [1968] VR 533 Wollongong Coal Ltd v Gujarat NRE India Pty Ltd (No 2) [2019] NSWCA 173 Woods v Sheriff of Queensland [1895] QLJ 163 Texts Cited: Ritchie, A V, Ritchie's Supreme Court Procedure New South Wales (4th ed, 1984, Butterworths) Category: Costs Parties: 2015/323943 Akierman Holdings Pty Limited (Plaintiff) Steven Akerman (Defendant)