Mao v Bao [2021] NSWSC 1096

Supreme Court New South Wales

Medium Neutral Citation: Mao v Bao [2021] NSWSC 1096 Hearing dates: 25, 26, 27, 28, 29 May 2020; 1 September 2020; 16 March 2021; 18, 19 May 2021 Date of orders: 31 August 2021 Decision date: 31 August 2021 Jurisdiction: Equity Before: Parker J Decision: See [387]-[391] Catchwords: CONTRACTS – payment of sum of money by the plaintiff to the defendant – whether the payment constituted a loan repayable by the defendant – identity of borrower EQUITY – equitable remedies – account – purchase of the property funded in part by a bank loan obtained by the cross-defendant and in part by remittances by the cross-claimant – cross-defendant borrows additional sum largely for his own purposes, and lets property to tenant – scope of account to which cross-claimant entitled LIMITATION OF ACTIONS – equitable defence of laches and acquiescence – whether inordinate delay in commencing the cross-claim – prejudice to cross-defendant LIMITATION OF ACTIONS – statutes of limitation – Limitation Act 1969 (NSW), s 15 – whether s 15 applied directly or by analogy – whether the cross-claim was an action founded on a duty at common law to account – whether s 15 operated by analogy to claim for account in equity's exclusive jurisdiction – relation back of amendments to cross-claim – discretionary factors – effect on items in account prior to beginning of limitation period Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 65 Judicature Act 1873 (Imp) (36 & 37 Vict, c 66), s 25 Limitation Act 1939 (Imp), ss 2, 28 Limitation Act 1969 (NSW), ss 15, 23, 47, 48, 54, 55, 74 Limitation of Actions Act 1958 (Vic), s 5 Mercantile Law Amendment Act 1856 (Imp) (19 & 20 Vict, c 97), s 9 Real Estate (Limitation of Actions) Act 1837 (NSW) (8 Wm IV, No 3) Real Property Act 1900 (NSW), s 57 Real Property Limitation Act 1833 (Imp) (3 & 4 Wm IV, c 27), ss 2, 24, 25 Statute of Limitations 1623 (Imp) (21 Jac I, c 16), s 3 Trustee Act 1888 (Imp) (51 & 52 Vict, c 59) Cases Cited: Adams v Bank of New South Wales [1984] 1 NSWLR 285 Agricultural Land Management Ltd v Jackson (No 2) (2014) 48 WAR 1 Burdick v Garrick (1870) LR 5 Ch App 233 Colin D Young Pty Ltd v Commercial and General Acceptance Ltd (Court of Appeal (NSW), 24 August 1982, unrep) CSR Ltd v Amaca Pty Ltd [2016] VSCA 320 Dovuro Pty Ltd v Wilkins (2003) 215 CLR 317 Faitrouni v El Omar [1999] NSWSC 84 Feiglin v Ainsworth [2011] VSC 454 Glazier v Australian Men's Health (No 2) [2001] NSWSC 6 How v Earl Winterton [1896] 2 Ch 626 In the application of Roderick Mackay Sutherland and Sule Arnautovic [2014] NSWSC 821 Jane v Bob Jane Corporation Pty Ltd [2013] VSC 406 Knox v Gye (1872) LR 5 HL 656 Lyell v Kennedy (No 3) (1889) 14 App Cas 437 Manufacturers Mutual Insurance Ltd v GIO (Supreme Court (NSW), 5 March 1993, unrep) McDonnell & East Ltd v McGregor (1936) 56 CLR 50 at 57 McGee v Yeomans (1977) 1 NSWLR 273 Metropolitan Bank v Heiron (1880) 5 Ex D 319 Nelson v Rye [1996] 2 All ER 186 Paragon Finance PLC v DB Thakerar & Co [1999] 1 All ER 400 Re Sharpe [1892] 1 Ch 154 Soar v Ashwell [1893] 2 QB 390 Sze Tu v Lowe (2014) 89 NSWLR 317 Taylor v Davies [1920] AC 636 Tito v Waddell (No 2) [1977] Ch 106 Weldon v Neal (1887) 19 QB 394 Wheatley v Bower [2001] WASCA 293 Xinfeng Australia International Investment Pty Ltd v GR Capital Group Pty Ltd [2021] NSWSC 614 Texts Cited: Heydon, J D, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) New South Wales Law Reform Commission, First Report on the Limitation of Actions (Report No 3, October 1967) Stoljar, S J, "The Transformations of Account" (1964) 80 LQR 203 Watson, J A, The Duty to Account: Development and Principles (2016, Federation Press) Category: Principal judgment Parties: Duoxiang Mao (Plaintiff/Cross-Defendant) Linchun Bao (Defendant/Cross-Claimant) Representation: Counsel: M Condon SC/H Zhao (Plaintiff/Cross-Defendant) C Harris SC (Defendant/Cross-Claimant)