The Checkout Pty Ltd v Cordell Jigsaw Productions Pty Ltd; Morrow v Cordell Jigsaw Productions Pty Ltd (No 13) [2022] NSWSC 444

Supreme Court New South Wales

Medium Neutral Citation: The Checkout Pty Ltd v Cordell Jigsaw Productions Pty Ltd; Morrow v Cordell Jigsaw Productions Pty Ltd (No 13) [2022] NSWSC 444 Hearing dates: 29 and 30 November, 1, 2, 3, 7, 8, 20, 21 and 22 December 2021; further submissions received 2 February, 18 and 21 March 2022 Decision date: 13 April 2022 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: Breach of joint venture agreement established; breach of directors' duties established; misleading or deceptive conduct established; publication of defamatory material established; defence of justification established in some cases but not in others; defences of qualified privilege and honest opinion not established; damages to be awarded Catchwords: CORPORATIONS – directors' duties – joint venture company – joint venture to produce a consumer affairs television program for the ABC – ultimately The Checkout – whether a term of joint venture that each joint venturer would inform the other of any opportunity to produce any further series of The Checkout or any equivalent or similar consumer affairs show – whether a breach of such term – whether a breach of duty to act in good faith in the best interests of joint venture company and for a proper purpose – whether a duty to act in the best interests of shareholder of the joint venture company MISLEADING OR DECEPTIVE CONDUCT – whether failure of one joint venturer to inform the other of negotiations with the ABC concerning new consumer affairs show constituted misleading or deceptive conduct DEFAMATION – whether emails sent by one joint venturer to the ABC were defamatory of the other joint venturer – whether defence of justification, common law and statutory qualified privilege or honest opinion made out Legislation Cited: Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law Corporations Act 2001 (Cth) Defamation Act 2005 (NSW) Income Tax Assessment Act 1997 (Cth) Cases Cited: Adam v Ward [1917] AC 309 Andrews v John Fairfax & Sons Ltd [1980] 2 NSWLR 225 Austin v Mirror Newspapers Ltd (1985) 3 NSWLR 354 Australian Broadcasting Corporation v Chau Chak Wing (2019) 271 FCR 632; [2019] FCAFC 125 Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2014] FCA 634 Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd [2017] FCA 1047 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Australian Competition and Consumer Commission v viagogo AG [2019] FCA 544 Australian Competition and Consumer Commission v We Buy Houses Pty Ltd [2017] FCA 915 Ballina Shire Council v Ringland (1994) 33 NSWLR 680 Bashford v Information Australia (Newsletters) Pty Ltd (2004) 218 CLR 366; [2004] HCA 5 Bauer Media Pty Ltd v Wilson (No 2) (2018) 56 VR 674; [2018] VSCA 154 Becker v Smith's Newspaper Ltd [1929] SASR 469 Bellino v Australian Broadcasting Corporation (1996) 185 CLR 183; [1996] HCA 47 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Bristow v Adams [2012] NSWCA 166 Brunninghausen v Glavanics (1999) 46 NSWLR 538; [1999] NSWCA 199 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Campomar Sociedad, Limitada v Nike International Ltd (2000) 202 CLR 45; [2000] HCA 12 Carlton & United Breweries Ltd v Tooth & Co Ltd (1986) 7 IPR 581 Charlton v Baber [2003] NSWSC 745 Codelfa Construction Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337; [1982] HCA 24 Cohen v Mirror Newspapers Ltd [1971] 1 NSWLR 623 Crampton v Nugawela (1996) 41 NSWLR 176 Cripps v Vakras [2014] VSC 279 Cush v Dillon; Boland v Dillon (2011) 243 CLR 298; [2011] HCA 30 Daniels v Pynbland Pty Ltd (Nos 1 & 2) (1985) 4 BPR 9716 Demagogue Pty Ltd v Ramensky (1992) 39 FCR 31; [1992] FCA 851 Digby v Financial News Ltd [1907] 1 KB 502 Domican v Pan Macmillan Australia Pty Limited [2019] FCA 1384 Fabcot Pty Ltd v Port Macquarie-Hastings Council [2011] NSWCA 167 Fairfax Digital Australia and New Zealand Pty Ltd v Kazal (2018) 97 NSWLR 547; [2018] NSWCA 77 Favell v Queensland Newspapers Pty Ltd [2005] HCA 52 Fox Entertainment Precinct Pty Ltd v Centennial Park and Moore Park Trust [2004] NSWSC 214 Gardiner v John Fairfax & Sons Pty Ltd (1942) 42 SR (NSW) 171 Greek Herald Pty Ltd v Nikolopoulos (2001) 54 NSWLR 165; [2002] NSWCA 41 Green v Fairfax Media Publications Pty Ltd (No 4) [2021] WASC 474 Hanson-Young v Leyonhjelm (No 4) [2019] FCA 1981 Harbour Radio Pty Ltd v Tingle [2001] NSWCA 194 Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (No 1) (1988) 39 FCR 546 Herald & Weekly Times Ltd v Popovic (2003) 9 VR 1; [2003] VSCA 161 Heyman v Darwins Ltd [1942] AC 356 Holt v TCN Channel Nine Pty Ltd (2014) 86 NSWLR 96; [2014] NSWCA 90 Howden v Truth & Sportsman Ltd (1937) 58 CLR 416; [1937] HCA 74 John Fairfax Publications Pty Ltd v O'Shane [2005] NSWCA 164 Johnson Tiles Pty Ltd v Esso Australia Ltd (2000) 104 FCR 564; [2000] FCA 1572 Koompahtoo Local Aboriginal Land Council v Sanpine Pty Ltd (2007) 233 CLR 115; [2007] HCA 61 Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd (1989) 166 CLR 623; [1989] HCA 23 Lloyd-Jones v Allen [2012] NSWCA 230 Marshall v Megna; Megna v Tory; Tory v Megna [2013] NSWCA 30 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2010) 241 CLR 357; [2010] HCA 31 Mirror Newspaper Ltd v World Hosts Pty Ltd (1979) 141 CLR 632; [1979] HCA 3 Nationwide News Pty Ltd v Rush [2020] FCAFC 115 Oates v Consolidated Capital Services Pty Limited (2009) 76 NSWLR 69; [2009] NSWCA 183 OXS Pty Ltd v Sydney Harbour Foreshore Authority [2016] NSWCA 120 Palmer Bruyn and Parker Pty Ltd v Parsons (2001) 208 CLR 388; [2001] HCA 69 Pamplin v Express Newspapers Ltd (No 2) [1988] 1 All ER 282; [1988] 1 WLR 116 Percival v Wright [1902] 2 Ch 421 Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR 17; [1985] HCA 14 Ratcliffe v Evans [1892] 2 QB 524 Reader's Digest Services Pty Ltd v Lamb (1982) 150 CLR 500; [1982] HCA 4 Roberts v Bass (2002) 212 CLR 1; [2002] HCA 57 Rush v Nationwide News Pty Ltd (No 7) [2019] FCA 496 Shevill v Builders Licensing Board (1982) 149 CLR 620; [1982] HCA 47 Sim v Stretch [1936] 2 All ER 1237 Skinner v Redmond Family Holdings Pty Ltd [2017] NSWCA 329 Slatyer v Daily Telegraph Newspaper Co Ltd (1908) 6 CLR 1; [1908] HCA 22 Société d'Avances Commerciales (Société Anonyme Egyptienne) v Merchants' Marine Insurance Co [1924] 20 Ll L Rep 140 Southern Cross Mine Management Pty Ltd v Ensham Resources Pty Ltd [2003] QSC 402 Stead v Fairfax Media Publications Pty Ltd [2021] FCA 15 The Checkout Pty Ltd v Cordell Jigsaw Productions Pty Ltd (No 11) [2021] NSWSC 1477 Traderight (NSW) Pty Ltd v Bank of Queensland Ltd [2015] NSWCA 94 Tribe v Simmons (No 2) [2021] FCA 1164 Triggell v Pheeney (1951) 82 CLR 497; [1951] HCA 23 Waterhouse v Broadcasting Station 2GB Pty Ltd (1985) 1 NSWLR 58 Wilson v Bauer Media (No 6) [2017] VSC 356 Wormald v Maradaca Pty Ltd [2020] NSWCA 289 Texts Cited: Concise Oxford Dictionary, online ed, March 2020 J D Heydon, Heydon on Contract (2019, Thomson Reuters) J D Heydon, M J Leeming, P G Turner, Meagher, Gummow & Lehane's Equity: Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) P W Young, C Croft and M Smith, On Equity (2009, Thomson Reuters) Category: Principal judgment Parties: Proceedings 2019/343896: The Checkout Pty Ltd (First Plaintiff/Third Cross-Defendant) Giant Dwarf Pty Ltd (Second Plaintiff/First Cross-Defendant) Julian Francis Xavier Morrow (Third Plaintiff/Second Cross-Defendant) Cordell Jigsaw Productions Pty Ltd (First Defendant/Cross-Claimant) Nicholas Harvey Murray (Second Defendant)