Wang v Cai [2021] NSWSC 1162

Supreme Court New South Wales

Medium Neutral Citation: Wang v Cai [2021] NSWSC 1162 Hearing dates: 12 and 13 August 2021 Date of orders: 15 September 2021 Decision date: 15 September 2021 Jurisdiction: Equity Before: Ward CJ in Eq Decision: 1. Order that within 21 days, the seventh defendant (Giant) provide to the plaintiffs access for inspection (and permit the plaintiffs at their expense to take a copy of) all books and records of the Everspring Develop Group Unit Trust in its possession (and of any such books and records in the possession of any agent of the seventh defendant of which the seventh defendant is entitled to call for production from that agent and which on request are produced to it); noting for the avoidance of doubt that the expression "books and records" of the trust bears the meaning explained in these reasons. 2. Liberty to the plaintiffs to identify within 14 days a specific list of company books and records of the eighth defendant (VIP Sale) (being documents with which the plaintiffs have not already been provided), access to which is sought pursuant to s 247A of the Corporations Act. 3. Direct the eighth defendant to notify the plaintiffs within 7 days of the provision of any such list pursuant to Order 2 above whether there is a dispute as to production of those documents. 4. If there remains a dispute as to production of the documents listed in accordance with Order 2 above, liberty to the plaintiffs to apply for the matter to be listed before me for determination of the dispute as to access at an appropriate time. 5. Otherwise dismiss the notice of motion filed 13 April 2021. 6. Reserve the question of costs. Catchwords: CIVIL PROCEDURE — Discovery — Practice Note SC Eq 11 CIVIL PROCEDURE — Discovery — Whether necessary for resolution of real issues in dispute — Preliminary discovery CIVIL PROCEDURE — Interrogatories — Application for — Necessity CORPORATIONS — Management and administration — Application to inspect books EQUITY — Trusts and trustees — Beneficiaries — Access to trust documents — Where claimed by reference to general administration suit — Whether trustee obliged to provide information or an account of trust dealings Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 57, 58, 59, 60, 61 Companies (Queensland) Code, s 265B Competition and Consumer Act 2010 (Cth), Sch 2 - Australian Consumer Law, s 4 Corporations Act 2001 (Cth), ss 9, 197, 203AB, 232, 233, 247A, 286 Court of Chancery Procedure Act 1852 (UK) Property and Stock Agents Act 2002 (NSW), ss 10, 11 Supreme Court Act 1970 (NSW) Uniform Civil Procedure Rules 2005 (NSW), Pts 5, 22; rr 5.3, 5.4, 22.2, 46.2, 54.3 Cases Cited: Aetna Pacific Securities Ltd v Hongkong Bank of Australia Ltd (unreported, 29 April 1993 in proceedings 1991/50586) Agricultural Land Management Ltd v Jackson (No 2) (2014) 48 WAR 1; [2014] WASC 102 AIB Group (UK) plc v Mark Redler & Co Solicitors [2015] AC 1503 AIT Investment Group Pty Ltd v Markham Property Fund No 2 Pty Ltd [2015] NSWSC 216 Alexiou v Alexandra White and Ors t/as HWL Ebsworth Lawyers [2021] NSWSC 485 Ali v Khan [2015] NSWSC 1961 Armstrong Strategic Management and Marketing Pty Ltd v Expense Reduction Analysts Group Pty Ltd [2012] NSWSC 393 Aspar Autobarn Co-Operative Society v Dovala Pty Ltd (1987) 16 FCR 284 Attorney-General v Gaskill (1882) 20 Ch D 519 Austal Ships Pty Ltd v Incat Australia Pty Ltd (No 3) [2010] FCA 795 Australian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd (2015) 218 ALR 302; [2015] VSCA 9 Australian Breeders Co-operative Society Ltd v Jones and Others (1997) 50 ALR 488 Australian Competition and Consumer Commission (ACCC) v Cornerstone Investment Aust Pty Ltd (No 2) [2017] FCA 393 Australian Securities Commission v AS Nominees Ltd (1995) 62 FCR 504; [1995] FCA 1663 Avanes v Marshall (2007) 68 NSWLR 595; [2007] NSWSC 191 Barrack Mines Ltd v Grants Patch Mining Ltd [1988] 1 Qd R 606 Biala Pty Ltd v Mallina Holdings Ltd [1990] WAR 371 Blair v Martin [1929] NZLR 225 Brunninghausen v Glavanics (1999) 46 NSWLR 538; [1999] NSWCA 199 Budgen v Tylee (1856) 21 Beav 544; 52 ER 970 Cescastle Pty Ltd v Renak Holdings Ltd (1991) 6 ACSR 115; (1991) 9 ACLC 1333 Chong v Nguyen [2005] NSWSC 588 Clarke v Earl of Ormonde (1821) Jac 108; (1821) 37 ER 791 Contour Building and Construction Pty Ltd v Kerr [2008] NSWSC 883 Daly v The Sydney Stock Exchange Ltd (1986) 160 CLR 371; [1986] HCA 25 DIF III Global Co-Investment Fund LP v Babcock & Brown International Pty Ltd [2019] NSWSC 527 Doss v Doss (1843) 3 Moo Ind App 175; (1843) 18 ER 464 Downey v Pryor (1960) 103 CLR 353; [1960] HCA 49 Edman v Ross (1922) 22 SR(NSW) 351 El-Sayed v El Hawach (2015) 88 NSWLR 214; [2015] NSWCA Expense Reduction Analysts Group Pty Ltd v Armstrong Strategic Management and Marketing Pty Limited (2013) 250 CLR 303; [2013] HCA 46 Fane v Fane (1879) 13 Ch D 228 Findex Group Ltd v iiNet Ltd [2019] NSWSC 1198 Gray v BNY Trust Company of Australia Ltd (formerly Guardian Trust Australia Ltd) (2009) 76 NSWLR 586; [2009] NSWSC 789 Hancock v Reinhart (2015) 13 ASTLR 1; [2015] NSWSC 646 Hancock v Rinehart (Trust Documents) [2018] NSWSC 1684 Hartigan Nominees Pty Ltd v Rydge (1992) 29 NSWLR 405 Hayim v Citibank NA [1987] AC 730 Hilliard v Eiffe (1874) LR 7 HL 39 Hocking v Director-General of the National Archives of Australia (2020) 94 ALJR 569; [2020] HCA 19 Hons v Hons (2010) 3 ASTLR 278; [2010] NSWSC 247 Iacullo v Murr (unreported, 3 September 2010, in proceedings 2010/257118) In Re Tillott [1892] 1 Ch 86 In the matter of Combined Projects (Arncliffe) Pty Ltd [2018] NSWSC 649 In the matter of Gerard Cassegrain & Co Pty Ltd – Cassegrain v Gerard Cassegrain & Co Pty Ltd [2011] NSWSC 241 In the matter of Idyllic Solutions Pty Ltd; ASIC v Hobbs [2012] NSWSC 1276 In the matter of Style Ltd, Merim Pty Ltd v Style Ltd [2009] FCA 314; 255 ALR 63 In the matter of the Bird Charitable Trust (2012) (1) JLR 62 Intercapital Holdings Ltd v MEH Ltd (1988) 13 ACLR 595 Jordan v Goldspring [2021] NSWSC 7 Juul v Northey [2010] NSWCA 211 Management Service Australia Pty Ltd v PM Works Pty Ltd [2017] NSWSC 1743 McDonald v Ellis [2007] NSWSC 1068 McLean v Burns Philp Trustee Co Pty Ltd and Others (1985) 2 NSWLR 623; (1985) 9 ACLR 926 Mesa Minerals Ltd v Mighty River International Ltd (2016) 241 FCR 241; [2016] FCAFC 16 Minors v Battison (1876) 1 App Cas 428 Morris v Morris (1993) 9 WAR 150 Morton v Nylex Ltd [2007] NSWSC 562 Mulherin v Quinn Villages Pty Ltd [2007] QSC 231 Murray v Wheeler [2013] NSWSC 137 Norwich Pharmacal Co v Customs and Excise Commissioners [1974] AC 133 Optiver Australia Pty Ltd v Tibra Trading Pty Ltd (2008) 169 FCR 435; [2008] FCAFC 133 Perpetual Trustee Co v Watson (No 1) (1927) 28 SR (NSW) 39 Pharmacy Guild of Australia v Ramsay Health Care Ltd [2019] NSWSC 1045 Potters Sulphide Ore Treatment Ltd v Sulphide Corp Ltd (1911) 13 CLR 101 Powell & Thomas v Evan Jones [1905] 1 KB 11 Power v Ekstein [2010] NSWSC 472 Praetorin Pty Ltd v TZ Ltd (2009) 76 ACSR 236; [2009] NSWSC 1237 Rafferty v Amaca Pty Ltd (formerly James Hardie & Co Pty Ltd) [2017] WASC 18 Ramage v Waclaw (1988) 12 NSWLR 84 Randall v Lubrano (unreported, 31 October 1975, NSWSC) Rapid Metal Developments (Aust) Pty Ltd v Rosato [1971] Qd R 82 Rattigan v Hanly [2020] NSWSC 1722 Re Augold NL [1987] 2 Qd R 297 Re Burrage; Burningham v Burrage (1890) 62 LT 752 Re Butt (deceased); Butt v Kelson [1952] 1 All ER 197 Re Chapman; Freeman v Parker (1894) 72 LT 66; 11 TLR 177 Re Cowin (1886) 33 Ch D 179 Re Donaldson (1912) 12 SR (NSW) 148 Re Furness (Viscount) [1943] Ch 415 Re Hydrosan Ltd [1991] BCLC 418 Re Londonderry's Settlement [1965] Ch 918 Re Simersall (1992) 35 FCR 584; (1992) 108 ALR 375 Rouse v IOOF Australia Trustees Ltd (1999) 73 SASR 484; [1999] SASC 181 Sabre Corporation Pty Ltd v Russ Kalvin's Haircare Co (1993) 46 FCR 428 Schmidt v Rosewood Trust Ltd [2003] 2 AC 709 Seidler v John Fairfax & Sons Ltd [1983] 2 NSWLR 390 Sharpe v Goodhew (unreported, 11 December 1992, in proceedings FED Q16/1989) Sharpe v San Paulo Railway Co (1873) LR 8 Ch App 597 Smith v Barnes (1865) LR 1 Eq 65 Soar v Ashwell [1893] 2 QB 390 Spellson v George (1987) 11 NSWLR 300 Spellson v Janango Pty Ltd (unreported, 8 December 1987, NSWSC) SPI Spirits (Cyprus) Ltd v Diageo Australia Ltd (No 2) (2006) 155 FCR 150; [2006] FCA 931 St George Bank Ltd v Rabo Australia Ltd (2004) 211 ALR 147; [2004] FCA 1360 Stamoulos v Constantinidis; Constantinidis v Constantinidis [2017] NSWSC 1808 TAL Life Ltd v Shuetrim; MetLife Insurance Ltd v Shuetrim (2016) 91 NSWLR 439; [2016] NSWCA 68 Talbot v Marshfield (1865) 2 Drew & Sm 549; 19 LT 223 Target Holdings Ltd v Redferns (a firm) [1996] AC 421 Tiger v Barclays Bank Ltd [1952] 1 All ER 85 Tiver v Tiver [1960] SASR 40 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 Unity APA Ltd v Humes Ltd (No. 2) [1987] VR 474 WA Pines Pty Ltd v Bannerman [1980] FCA 79 Wellington Capital Ltd v Australian Securities and Investments Commission (2014) 254 CLR 288; [2014] HCA 43 Wentworth v De Montfort (1988) 15 NSWLR 348 Wright v Stevens [2018] NSWSC 548 Wynne v Humberston (1858) 27 Beav 421; 54 ER 165 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: Campbell, J, "Access by Trust Beneficiaries to Trustees' Documents Information and Reasons" (2009) 3 Journal of Equity 97 D'Angelo, N, "The trust as a surrogate company: The challenge of insolvency" (2014) 8 Journal of Equity 299 Finn, P, Fiduciary Obligations (1977, Lawbook Co) Halsbury's Laws of Australia, vol 430 Heydon, JD and MJ Leeming, Jacobs' Law of Trusts, (8th ed, 2016, LexisNexis Butterworths) Practice Note SC Eq 11 Ritchie's Uniform Civil Procedure NSW, vol 1 Underhill, A, Underhill's Law relating to trusts and trustees (13th ed, 1979, LexisNexis Butterworths) Category: Procedural rulings Parties: Xiaobo Wang (First Plaintiff) Haixin Australia Pty Ltd (Second Plaintiff) Wan Hao Cai (First Defendant) Yun Xia Fang (Second Defendant) Yi Guang Zhang (Third Defendant) Mayland Australia Pty Ltd (Fourth Defendant) Ozjian Trading Pty Ltd (Fifth Defendant) Aqua Blu Swimwear Pty Ltd (Sixth Defendant) Giant Project Group Pty Ltd (Seventh Defendant) VIP Sale Pty Ltd (Eighth Defendant) Diamond Bay Developments Pty Ltd (Ninth Defendant) PJE918 Pty Ltd (Tenth Defendant) Representation: Counsel: DA Smallbone with A Smythe (Plaintiffs) J Williams SC (1st, 3rd, 4th, 6th Defendants) J Mee (2nd & 5th Defendants) PR Hudson (Solicitor) (7th Defendant)