Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd (No 3) [2021] NSWSC 1482

Supreme Court New South Wales

Medium Neutral Citation: Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd (No 3) [2021] NSWSC 1482 Hearing dates: 22, 23, 24 and 25 June 2020, 23, 24, 27, 28, 29, 30 and 31 July 2020 Date of orders: 17 November 2021 Decision date: 17 November 2021 Jurisdiction: Equity - Expedition List Before: Williams J Decision: See paragraphs [856]-[857]. Catchwords: RES JUDICATA – multiple prior proceedings in this Court arising out of the administration and liquidation two companies that also gave rise to the events the subject of these proceedings – whether plaintiffs' claims in these proceedings are precluded by the doctrines of res judicata, issue estoppel or Anushun estoppel – whether plaintiffs' claims in these proceedings are an abuse of process POWER OF ATTORNEY – determination in previous proceedings that power of attorney irrevocable by reason of Powers of Attorney Act 2003 (NSW), s 15 – construction of power of attorney – consideration of whether attorneys owed fiduciary duties to principal – held that attorneys owed duties not to obtain unauthorised benefits (or confer such benefits on third parties) and not to act in circumstances of conflict between attorneys' interests (or interests of third parties) and principal's interests FIDUCIARY DUTIES – breach of fiduciary duties by attorneys in entering into a series of deeds dealing with the proceeds of the principal's rights and interests in respect of which the attorneys had been appointed to act on behalf of the principal – alleged conspiracies – whether third party induced or procured breaches of fiduciary duties – whether third party knowing recipient of property obtained by breaches of fiduciary duties – whether breaches of fiduciary duties were a dishonest and fraudulent design in which third party was a knowing assistant – use of power of attorney to retain solicitor to act in name of principal but for benefit of third party a fraud on the power remedies as against attorneys and third parties LAND LAW – Torrens title – indefeasibility of title – fraud exception to indefeasibility LEGAL PRACTITIONERS – consideration of what constitutes engaging in legal practice within the meaning of s 10 of the Legal Profession Uniform Law (NSW) – consequences of attorneys appointed under power of attorney undertaking work that amounted to engaging in legal practice in circumstances where the attorneys were not qualified entities within the meaning of the Uniform Law Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56, 100 Conveyancing Act 1919 (NSW), s 12 Corporations Act 2001 (Cth), ss 126, 128, 129, 197, 420B, 436C, 440B, 442C, 443D, 443E, 447C, 459C, 459Q, 459S, 477 Criminal Code Act 1995 (Cth), s 134.2 Legal Profession Act 2004 (NSW), s 14 Legal Profession Act 2007 (Qld), ss 24, 52-53 Legal Profession Regulation 2007 (Qld), s 6 Legal Profession Uniform General Rules 2015 (NSW), cl 10 Legal Profession Uniform Law (NSW), ss 6, 9, 10, 11, 172, 173, 174, 178, 187, Pt 4.3, 9.1, 9.2 Legal Profession Uniform Law Application Act 2014 (NSW), sch 2 Powers of Attorney Act 2003 (NSW), ss 8, 9, 10, 12, 13, 15, 16, 28, Pt 2 Powers of Attorney Regulation 2011 (NSW), sch 2 Superannuation Industry (Supervision) Act 1993 (Cth) Supreme Court Act 1970 (NSW), s 68 Taxation Administration Act 1953 (Cth), sch 1 s 444-15 Transfer of Land Act 1958 (Vic), ss 42, 43, 77, 78, 89A Trustee Act 1925 (NSW), ss 9, 71 Uniform Civil Procedure Rules 2005 (NSW), rr 6.24, 13.1, 13.4, 14.28 Cases Cited: Akierman Holdings Pty Ltd v Akerman (No. 2) (2020) 147 ACSR 63; [2020] NSWSC 970 Assets Co Ltd v Mere Roihi [1905] AC 176 at 210; Baba v Sheehan (2021) 151 ACSR 462; [2021] NSWCA 58 at [6] per Brereton JA. Baden v Société Générale pour Favoriser le Développement du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barnes v Addy (1874) 43 LJ Ch 513; (1874) 22 WR 505 Batistatos v Roads and Traffic Authority of New South Wales (2006) 226 CLR 256; [2006] HCA 27 Beck v Weinstock [2012] NSWCA 289 Blair v Curran (1939) 62 CLR 464 C G Maloney Pty Ltd v Noon [2011] NSWCA 397 Champerslife Pty Ltd v Manojloviski (2010) 75 NSWLR 245; [2010] NSWCA 33 Clayton v Bant (2020) 95 ALJR 34; [2020] HCA 44 Codelfa Construction Pty Ltd v State Rail Authority (1982) 149 CLR 337 Commonwealth Bank of Australia v Barker (2014) 253 CLR 169; [2014] HCA 32 Council of the New South Wales Bar Association v Dwyer [2015] NSWCA 302 Despot v Registrar-General of NSW [2013] NSWCA 313 Ekes v Commonwealth Bank of Australia (2014) 313 ALR 665; [2014] NSWCA 336 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Great Investments Ltd v Warner (2016) 243 FCR 516; [2016] FCAFC 85 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Gunasegaram v Blue Visions Management Pty Ltd; Same v Chdiac (2018) 129 ACSR 265; [2018] NSWCA 179 Hanock v Rinehart (2015) 106 ACSR 207; [2015] NSWSC 646 Harris v Digital Pulse Pty Ltd (2003) 56 NSWLR 298; [2003] NSWCA 10 Harstedt Pty Ltd v Tomanek (2018) 55 VR 158; [2018] VSCA 84 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Howard v Commission of Taxation (2014) 253 CLR 83; [2014] HCA 21 In the matter of Beechworth Land Estates Pty Ltd (2019) 140 ACSR 1; [2019] NSWSC 1129 In the matter of Beechworth Land Estates Pty Ltd (administrators appointed) [2017] NSWSC 1447 In the matter of Beechworth Land Estates Pty Ltd (admins apptd) and Griffith Estates Pty Ltd (admins apptd); Cussen and of Beechworth Land Estates Pty Ltd v Douglas Estate Holdings Pty Ltd and Others (2019) 140 ACSR 1; [2019] NSWSC 1129 In the matter of Beechworth Land Estates Pty Ltd (in liquidation) and Griffith Estates Pty Ltd (in liquidation) [2018] NSWSC 1703 In the matter of Beechworth Land Estates Pty Ltd [2018] NSWSC 1630 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Kordovoulos v Dixon-Hughes [2021] NSWSC 722 Kuligowski v Metrobus (2004) 220 CLR 363; [2004] HCA 34 Mackay v Dick [1881] 6 App Cas 251 Macquarie Bank Ltd v National Mutual Life Association of Australia Ltd (1996) 40 NSWLR 543 McFee v Reilly [2018] NSWCA 322 Michael Wilson & Partners Ltd v Nicholls (2011) 244 CLR 427; [2011] HCA 48 Photios v Cussen (in their capacity as joint administrators of Beechworth Land Estates Pty Ltd (admins apptd) [2015] NSWSC 336 Pittmore Pty Ltd v Chan (2020) 104 NSWLR 62; [2020] NSWCA 344 Port of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589; [1981] HCA 45 Rogers v The Queen (1994) 181 CLR 251 at 286 Taheri v Vitek (2014) 87 NSWLR 403; [2014] NSWCA 209 Talako v Talako [2021] HCA 15 Tomlinson v Ramsey Food Processing Pty Ltd (2015) 256 CLR 507; [2015] HCA 28 UBS AG v Tyne (2018) 265 CLR 77; [2018] HCA 45 Victoria International Container Terminal Limited v Lunt (2021) 288 ALR 376; [2021] HCA 11 Warman International Ltd v Dwyer (1995) 182 CLR 544 Williams v Spautz (1992) 174 CLR 509 Texts Cited: Handley, K R, Spencer Bower and Handley: Res Judicata (5th ed, LexisNexis Butterworths, 2019) Heydon, J D, M J Leeming and P G Turner, Meagher, Gummow & Lehane's Equity Doctrines and Remedies (5th ed, 2015) Thomas, Geraint, Thomas on Powers (2nd ed, 2012), Chapter 9 Category: Principal judgment Parties: Overdean Developments Pty Ltd as trustee of the Dean Super Fund (First Plaintiff) Brian Dean (Second Plaintiff) B.A.D Nominees (NSW) Pty Ltd (Third Plaintiff) Garslev Holdings Pty Ltd (First Defendant) Leonardus Gerardus Smits (Third Defendant) Peter Shah Mahommed (Fourth Defendant) Vestecorp Financial Services Pty Ltd (Fifth Defendant) Jacobus Smits (Sixth Defendant) Representation: Counsel: D Allen (Plaintiffs) L Smits, solicitor (Defendants)