In the matter of Wil Brown Management Pty Ltd and Wil Brown Pty Ltd – Brownlee Enterprises Pty Ltd v Wilmen Pty Ltd [2022] NSWSC 207

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Wil Brown Management Pty Ltd and Wil Brown Pty Ltd – Brownlee Enterprises Pty Ltd v Wilmen Pty Ltd [2022] NSWSC 207 Hearing dates: 22 February 2022 Date of orders: 04 March 2022 Decision date: 04 March 2022 Jurisdiction: Equity - Corporations List Before: Williams J Decision: Leave to amend the statement of claim and leave to bring a derivative claim on behalf of each company is granted: see [116], [123] and [124]. Catchwords: PRACTICE AND PROCEDURE – application for leave to amend statement of claim – no issue of principle CORPORATIONS – statutory derivative action – whether leave should be granted to allow applicant to bring proceedings on behalf of the two companies – where applicant is shareholder of each company – where applicant is also a beneficiary of the trust for which one of the companies acts as trustee – where applicant may also bring proceedings in capacity as beneficiary of the trust – whether probable that companies will bring proceedings themselves – whether applicant acting in good faith in seeking to bring proceedings – whether in the best interests of each company that leave be granted – whether proposed proceedings involve a serious question to be tried – where oppression under the Corporations Act 2001 (Cth), s 232 pleaded but means of redress under s 233 may not be available as assets of one company held on trust Legislation Cited: Civil Procedure Act 2005 (NSW), ss 56-58 Corporations Act 2001 (Cth), ss 180-183, 233, 236, 237, 461, 1317 Trustee Act 1925 (NSW), s 86A Cases Cited: Alexander v Perpetual Trustees WA Ltd (2004) 216 CLR 109; [2004] HCA 7 Baden v Société Générale pour Favoriser le Développement du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Canberra Babbington [2021] NSWSC 552 Chahwan v Euphoric Pty Ltd (2008) 65 ACSR 661; [2008] NSWCA 52 Colin R Price & Associates Pty Ltd v Four Oaks Pty Ltd [2017] FCAFC 75 Connective Services Pty Ltd v SLEA Pty Ltd (2018) 130 ACSR 321; [2018] VSCA 229 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Huang v Wang (2016) 114 ACSR 586; [2016] NSWCA 164 Lewis v Condon (2013) 85 NSWLR 99; [2013] NSWCA 204 McLean v Burns Philp Trustee Co Pty Ltd (1985) 2 NSWLR 623 Mineralogy Pty Ltd v Sino Iron Pty Ltd [2016] WASCA 105 Mount Gilead Pty Ltd & Hobhouse v L Macarthur-Onslow [2021] NSWSC 948 Pittmore Pty Ltd v Chan (2020) 104 NSWLR 62; [2020] NSWCA 344 Re Gaydon [2001] NSWSC 473 Re Legal Practice Management Group Pty Ltd, nSynergy Pty Ltd, nSynergy International Pty Ltd (2018) 125 ACSR 513; [2018] NSWSC 527 Robash Pty Ltd v Gladstone Pacific Nickel Pty Ltd (2011) 86 ACSR 432; [2011] NSWSC 1235 Rosenbaum v Baidarman (No 2) [2021] NSWSC 574 Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313; [2002] NSWSC 583 Tomanic v One Australia Pty Ltd (2011) 288 ALR 310; (2011) 84 ACSR 121; [2011] NSWCA 104 Vadori v AAV Plumbing at (2010) 77 ACSR 616; [2010] NSWSC 274 Category: Procedural rulings Parties: Brownlee Enterprises Pty Ltd ACN 613 312 548 (First Plaintiff) Tate Lucas Brownlee (Second Plaintiff) Kristen Merrion (Third Plaintiff) Wilmen Pty Limited ACN 612 746 899 (First Defendant) James David Wilmen (Second Defendant) Wil Brown Management Pty Ltd ACN 618 846 021 as trustee for The Wil Brown Management Trust (Third Defendant) Wil Brown Pty Ltd trading as Raine & Horne Pottsville Beach & Cabarita Beach ACN 613 356 504 (Fourth Defendant) Representation: Counsel: Mr D Rayment with Mr A Schmorchevsky (Plaintiffs) Ms A Avery-Williams (First and Second Defendants)