OLI 1 Pty Ltd (in liq) v OLG 1 Pty Ltd (No 2) [2022] NSWSC 1199

Supreme Court New South Wales

Medium Neutral Citation: OLI 1 Pty Ltd (in liq) v OLG 1 Pty Ltd (No 2) [2022] NSWSC 1199 Hearing dates: 12-14 July 2022 Date of orders: 7 September 2022 Decision date: 07 September 2022 Jurisdiction: Common Law Before: Chen J Decision: (1) Direct that the parties confer with a view to agreeing upon proposed orders finalising the proceedings in accordance with these reasons (including costs), with agreed orders to be filed and served by 14 September 2022, 5pm. (2) To the extent that agreement cannot be reached, direct that each party is to file and serve, by 14 September 2022, 5pm, the proposed orders it seeks with submissions explaining the basis for why those orders are sought limited to no more than 3 pages. (3) Direct that any evidence in support of any contested orders be filed and served by 14 September 2022, 5pm. (4) The matter will be listed for further argument, and the entry of further orders, on a date to be fixed. Catchwords: CONTRACTS — formation of contract — whether transfer of monies were pursuant to oral agreement — no direct evidence on whether oral agreement existed — whether oral agreement can be inferred from surrounding circumstances — inconsistent post-contractual conduct CORPORATIONS — directors and officers — directors' duties — duty of care and diligence — duty to act in good faith in the best interest of company and for proper purpose CORPORATIONS — directors and officers — knowledge — rules of attribution — whether knowledge of officers or employees can be attributed to corporation — accessorial liability — accessorial liability of a corporation EQUITY — fiduciary duties — fiduciary relationships — directors EQUITY — fiduciary duties — breach — rule in Barnes v Addy DEBT — simple debt — debt repayable on demand — cause of action commences instanter upon making of loan LIMITATION OF ACTIONS — general — statute of limitation — Limitation Act 1969 (NSW) — debt — confirmation — acknowledgment in writing — authenticated signature fiction rule LIMITATION OF ACTIONS — s 1317K of the Corporations Act 2001 (Cth) REMEDIES — equitable compensation Legislation Cited: Acts Interpretation Act 1901 (Cth) Corporations Act 2001 (Cth) Limitation Act 1969 (NSW) Cases Cited: Adler v Australian Securities and Investments Commission (2003) 179 FLR 1; [2003] NSWCA 131 Australasian Annuities Pty Ltd (in liq) v Rowley Super Fund Pty Ltd (2015) 318 ALR 302; [2015] VSCA 9 Australia Kunqian International Energy Co Pty Ltd v Flash Lighting Company Ltd [2020] VSCA 239 Australian Competition and Consumer Commission v Giraffe World Australia Pty Ltd (No 2) (1999) 95 FCR 302; [1999] FCA 1161 Australian Medico Legal Group Pty Ltd v Claireleigh Mosman Pty Ltd [2017] NSWCA 218 Australian Securities and Investments Commission v ActiveSuper Pty Ltd (in liq) (2015) 235 FCR 181; [2015] FCA 342 Australian Securities and Investments Commission v Cassimatis (No 8) (2016) 336 ALR 209; [2016] FCA 1023 Australian Securities and Investments Commission v Maxwell (2006) 59 ACSR 373; [2006] NSWSC 1052 Australian Securities and Investments Commission v Rich (2009) 236 FLR 1; 2009 NSWSC1229 Barnes v Addy (1874) LR 9 Ch App 244 Beach Petroleum NL v Johnson (1993) 43 FCR 1 Bell Group Pty Ltd (in liq) v Westpac (No 9) (2008) 39 WAR 1; [2008] WASC 239 BH Australia Constructions Pty Ltd v Kapeller (2019) 100 NSWLR 367; [2019] NSWSC 1086 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Bucknell v Commercial Banking Co of Sydney Ltd (1937) 58 CLR 155; [1937] HCA 35. Cassegrain v Cassegrain [2016] NSWCA 71 Cassimatis v Australian Securities and Investments Commission [2020] FCAFC 52; (2020) 376 ALR 261 Chidiac v Maatouk [2010] NSWSC 386 Christian Youth Camps Ltd v Cobaw Community Health Service Ltd (2014) 50 VR 256; [2014] VSCA 75 Commonwealth Bank of Australia v Kojic (2016) 249 FCR 421; [2016] FCAFC 186 County Securities Pty Ltd v Challenger Group Holdings Pty Ltd [2008] NSWCA 193 Director-General, Department of Education and Training v MT (2007) 67 NSWLR 237; [2006] NSWCA 270 Environment Protection Authority v Wollondilly Abattoirs Pty Limited & Davis [2019] NSWCCA 312 Ermogenous v Greek Orthodox Community of SA Inc (2002) 209 CLR 95; [2002] HCA 8 Faraday v Rappaport [2007] NSWSC 34 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Filadelfia Projects Pty Ltd v Entirity Business Services Pty Ltd [2011] NSWSC 116 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Franklins Pty Ltd v Metcash Trading Ltd (2009) 76 NSWLR 603; [2009] NSWCA 407 General Credits Ltd v Wenham (1989) 18 NSWLR 570 Giacci v Giacci Holdings Pty Ltd [2010] WASCA 233 Good Challenger Navegante SA v Metalexportimport SA [2003] EWCA Civ 1668 Grimaldi Chameleon Mining NL (No. 2) (2012) 200 FCR 296; [2012] FCAFC 6 Haller v Ayre [2005] 2 Qd R 410; [2005] QCA 224 Hashman v Australian Medico Legal Group Pty Ltd [2016] NSWSC 1773 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41; [1984] HCA 64 Howard Smith & Co Ltd v Varawa (1907) 5 CLR 68; [1907] HCA 38 In the matter of Australian International Yacht Club Pty Ltd [2021] NSWSC 586 In the matter of Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233, [2014] NSWSC 789 In the matter of IW4U Pty Limited (in liq) (2021) 150 ACSR 146; [2021] NSWSC 40 In the matter of Sirrah Pty Ltd (in prov liq) [2021] NSWSC 413 Kalls Enterprises Pty Limited v Baloglow (2007) 63 ACSR 557; [2007] NSWCA 191 Kation Pty Ltd v Lamru Pty Ltd [2011] NSWSC 219 Lambeth London Borough Council v Bigden (2001) 33 HLR 43 Lawrence v Ciantar [2020] NSWCA 89 Lennard's Carrying Company Limited v Asiatic Petroleum Co Ltd [1915] AC 705 Lifeplan Australia Friendly Society Ltd v Ancient Order of Foresters in Victoria Friendly Society Ltd (2017) 250 FCR 1; [2017] FCAFC 74 Lifeplan Australia Friendly Society Ltd v Woff (2016) 259 IR 384, [2016] FCA 248 Meridian Global Funds Management Asia Ltd v Securities Commission [1995] 2 AC 500 Murdoch v Mudgee Dolomite & Lime Pty Ltd (in liq) (2022) 398 ALR 658; [2022] NSWCA 12 Nurisvan Investment Ltd v Anyoption Holdings Ltd [2017] VSCA 141 O'Halloran v RT Thomas and Family Pty Ltd (1998) 45 NSWLR 262; [1998] NSWSC 596 Olgilvie v Adams [1981] VR 1041 Papas v Co [2018] NSWSC 1404 Pirt Biotechnologies Pty Limited v Pirtferm Ltd [2001] WASCA 96 Pullen v Gutteridge Haskins & Davey Pty Ltd [1993] 1 VR 27 Re FAL Healthy Beverages Pty Ltd [2017] NSWSC 476 Re Italasia Pty Ltd [2017] NSWSC 811 Re Mudgee Dolomite & Lime Pty Ltd [2020] NSWSC 1510 Segal v Fleming [2002] NSWCA 262 Seoud v Fortythird Garland Pty Ltd (2019) 57 VR 262; [2019] VSC 192 Simmons v NSW Trustee & Guardian [2014] NSWCA 405 Stewart v Spicer Thoroughbreds Pty Ltd [2022] NSWSC 558 Stuart v Hishon [2013] NSWSC 2013 Técnicas Reunidas SA v Andrew [2018] NSWCA 192 The Stage Club Ltd v Miller's Hotels Pty Ltd (1981) 150 CLR 535; [1981] HCA 71 Toyota Motor Corp Aust Ltd v Ken Morgan Motors Pty Ltd [1994] 2 VR 106 VL Finance Pty Ltd v Legudi [2003] VSC 57 Vrisakis v Australian Securities Commission (1993) 9 WAR 395; 11 ACSR 162 Vroon BV v Foster's Brewing Group Ltd [1994] 2 VR 32 Woo v Woo [2010] NSWSC 1216 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Young v Queensland Trustees Ltd (1956) 99 CLR 560; [1956] HCA 51 Category: Principal judgment Parties: OLI 1 Pty Ltd (Plaintiff) OLG 1 Pty Ltd (First Defendant) Nicholas James O'Day (Second Defendant) Representation: Counsel: A J Macauley & F G Dilizia (Plaintiff) N O'Day (Defendants)