In the matter of Hot Frog Pty Ltd (No 2) [2022] NSWSC 412

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Hot Frog Pty Ltd (No 2) [2022] NSWSC 412 Hearing dates: On the papers; last submission received 28 March 2022. Date of orders: 8 April 2022 Decision date: 08 April 2022 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Order defendant to pay plaintiff's costs in a specified gross sum. Catchwords: CORPORATIONS – jurisdiction for compensation orders under section 1317H, Corporations Act 2001 (Cth) – section 1337E, Corporations Act – s58AA, Corporations Act – "superior court" – "superior court matter" – compensation orders may only be made by superior courts – see [5]-[10]. COSTS – r 42.34, Uniform Civil Procedure Rules 2005 (NSW) – whether proceedings in Supreme Court "warranted" – rule not applicable as District Court lacked jurisdiction. COSTS – company sues former director for $118,000 – obtains judgment for $7,760 – former director responsible for running the business – lack of records – company makes reasonable offer of settlement in early stages of proceedings – former director makes 'walk away' offer only – costs orders in specified gross sum of $15,000 plus court fees. Legislation Cited: Civil Procedure Act 2005 (NSW) ss 98(2), 98(4)(c), 100 Corporations Act 2001 (Cth) ss 9, 58AA, 1317H, 1337E District Court Act 1973 (NSW) ss 44(1)(c), 134(1)(h) Uniform Civil Procedure Rules 2005 (NSW) rr 42.1, 42.34 Cases Cited: Asahi Holdings (Australia) Pty Ltd v Pacific Equity Partners Pty Ltd (No 3) [2014] FCA 758 Australian Trade Commission v Disktravel [2000] FCA 62 Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd (No 2) [2009] NSWCA 12 Baychek v Baychek [2010] NSWSC 987 Bostik Australia Pty Ltd v Liddiard (No 2) [2009] NSWCA 304 Bowen Investments v Tabcorp Holdings Ltd (No 2) [2008] FCAFC 107 Cadbury Schweppes Pty Ltd v Darrell Lea Chocolate Shops Pty Ltd (No 3) [2007] FCAFC 119 Comcare v Wuth (No 2) [2018] FCAFC 60 Cretazzo v Lombardi (1975) 13 SASR 4 Dee-Tech Pty Limited & Anor v Neddam Holdings Pty Ltd (No 2) [2012] NSWSC 517 Dodds Family Investments Pty Ltd v Lane Industries Pty Ltd (1993) 26 IPR 261 Firebird Global Master Fund II Ltd v Republic of Nauru (No 2) [2015] HCA 53; (2015) 327 ALR 192 Fyna Projects Pty Ltd v Deputy Commissioner of Taxation (No 2) [2019] FCA 790 Hamod v New South Wales [2011] NSWCA 375 Harrison v Schipp (2002) 54 NSWLR 738; [2002] NSWCA 213 Idoport Pty Ltd v National Australia Bank Ltd [2007] NSWSC 23 In the matter of Hot Frog Pty Ltd [2022] NSWSC 6 James v Surf Road Nominees Pty Ltd (No 2) [2005] NSWCA 296 Knight v FP Special Assets Ltd (1992) 174 CLR 178 McInnes v Rheem Australia Pty Limited [2021] NSWCA 89 Mobile Innovations Limited v Vodafone Pacific Limited [2003] NSWSC 423 Monie v Commonwealth (No 2) [2008] NSWCA 15 NRMA Limited v Morgan (No 3) [1999] NSWSC 768 sec v Consolidated Builders Ltd (No 4) [2021] ACTSC 188 Silversea Cruises Australia Pty Ltd v Abellanoza (No 2) [2020] NSWCA 37 Sze Tu v Lowe (No 2) [2015] NSWCA 91 Taxa Australia Pty Ltd v Wang [2018] NSWSC 1668 Trade Practices Commission v Nicholas Enterprises Pty Ltd (No 3) (1979) 28 ALR 201; (1979) 42 FLR 213 Waterman v Gerling Australia Insurance Co Pty Ltd (No 2) [2005] NSWSC 1111 Waters v P C Henderson (Aust) Pty Ltd (Court of Appeal (NSW), 6 July 1994, unrep) Texts Cited: Ritchie's Uniform Civil Procedure NSW Category: Costs Parties: Hot Frog Pty Ltd (Plaintiff) David Barker (Defendant) Representation: Counsel: Anthony Hopkins (Plaintiff) Matthew Twyford, Solicitor (Defendant)