Elite Realty Development Pty Ltd v Sadek [2022] NSWSC 1333

Supreme Court New South Wales

Medium Neutral Citation: Elite Realty Development Pty Ltd v Sadek [2022] NSWSC 1333 Hearing dates: 25 – 29 July, 3 August 2022; further written submissions 5 August 2022 Decision date: 30 September 2022 Jurisdiction: Equity Before: Peden J Decision: (1) In the KPI Proceedings (2018/383933): (a) The proceedings are dismissed. (b) The plaintiffs to pay the defendants' costs as agreed or assessed. (2) In the Afyouni Proceedings (2020/114103): (a) Judgment for the second plaintiff against the first and second defendant in the sum of $60,000. (b) Judgment for the second plaintiff against the first defendant in the sum of $20,000. (c) The Statement of Claim is otherwise dismissed. (d) Defendants to pay the plaintiffs' costs as agreed or assessed. Catchwords: TORTS — General principles — Intentional torts — Joint tortfeasors — Assault — Common design — Procurement — Agency — Damages — Exemplary damages — Aggravated damages — Whether accessory procured or had common design with principal wrongdoer to threaten accessory's business partner with a gun CONTRACTS — Duress — Forms — Duress to the person — Gun attack — Whether will deflected in entering into termination agreement after a gun attack — Whether termination agreement was affirmed PARTNERSHIPS AND JOINT VENTURES — Joint venture agreements — Rights and duties between joint venturers — Fiduciary relationship — Position of conflict EQUITY — Fiduciary duties — Breach — Whether company director in a joint venture entered into termination agreement — Whether entry into termination agreement was a breach of the no conflict principle — No termination agreement on the facts — No real and sensible possibility of conflict — No breach of statutory directors' duties Legislation Cited: Australian Consumer Law s 20 Civil Liability Act 2005 (NSW) s 3B Civil Procedure Act 2005 (NSW) ss 56, 57, 58, 59, 60 Corporations Act 2001 (Cth) ss 180, 181, 182, 185, 1317H Evidence Act 1995 (NSW) s 138 Surveillance Devices Act 2007 (NSW) s 7 Uniform Civil Procedure Rules 2005 (NSW) rr 1.2, 6.1, 6.9, 10.20, 14.3, 14.26, 16.2, 16.7, 18.5, 29.7, 36.6, 42.8 Cases Cited: Affleck v Kennedy [2010] QDC 332 Antonio v Antonio [2010] EWHC 1199 Archer v Brown [1985] QB 401 Ashford v Ashford (1970) 44 ALJR 195 Australian Building and Construction Commissioner v Construction, Forestry, Maritime, Mining and Energy Union (No 3) [2021] FCA 363 Barclay v Penberthy (2012) 246 CLR 258 Barton v Armstrong (1969) 2 NSWLR 451 Barton v Armstrong [1976] AC 104 Boardman v Phipps [1967] 2 AC 46 Brook v Kempton [2017] VSC 661 Cameron v Cole (1944) 68 CLR 571 CBS Songs Ltd v Amstrad Consumer Electronics PLC [1988] AC 1013 Chan v Zacharia (1984) 154 CLR 178 Chelini v Northern Territory Port Authority (1976) 12 ALR 519 Chew v R (1992) 173 CLR 626 Crescendo Management Pty Ltd v Westpac Banking Corporation (1988) 19 NSWLR 40 Croucher v Cachia [2016] NSWCA 132 Dean v Phung [2012] NSWCA 223 Defteros v Google Inc (2017) 54 VR 592 De Reus v Gray (2003) 9 VR 432 Dessent v Commonwealth of Australia (1977) 13 ALR 437 Dunwoodie v Teachers Mutual Bank Ltd [2014] NSWCA 24 Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89 Farjudi v Cheng [2015] NSWDC 297 Fish & Fish Ltd v Sea Shepherd UK [2015] AC 1229 Graves v West (No 2) [2015] NSWSC 306 Gray v Motor Accident Commission (SA) (1998) 196 CLR 1 Griffiths v Kerkemeyer (1977) 139 CLR 161 Hamlyn v John Houston & Co [1903] 1 KB 81 Harlowe's Nominees Pty Ltd v Woodside (Lakes Entrance) Oil Co NL (1968) 121 CLR 483 Hawker Pacific Pty Ltd v Helicopter Charter Pty Ltd (1991) 22 NSWLR 298 Holyoake Industries (Vic) Pty Ltd v V-Flow Pty Ltd [2011] FCA 1154 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Hutton v West Cork Railway Co (1883) 23 Ch D 654 In the matter of Central Management (NSW) Pty Ltd (in liquidation) [2017] NSWSC 1258 James v James (No 3) [2020] NSWDC 797 Kallouf v Middis [2008] NSWCA 61 Lamb v Cotogno (1987) 164 CLR 1 Livingstone v Rawyards Coal Co (1880) 5 App Cas 25 Louis Vuitton Malletier SA v Toea Pty Ltd (2006) 156 FCR 158 MacDougal v Mitchell [2015] NSWCA 389 Magnacrete Ltd v Douglas-Hill (1988) 48 SASR 565 Maguire v Makaronis (1997) 188 CLR 449 Malcolm Anthony Braam v BBC Hardware Ltd [2020] VSCA 164 Maskell v Horner [1915] 3 KB 106 Mason v New South Wales (1959) 102 CLR 108 Matta v Matta [2015] NSWSC 963 McMillen v Brambles Security Services Limited [2001] QSC 271 Mualim v Dzelme [2021] NSWCA 199 Murdock v Betham [2018] NSWDC 192 Mutua v Foreign and Commonwealth Office [2012] EWHC 2678 National Commercial Banking Corporation of Australia Ltd v Batty (1986) 160 CLR 251 New South Wales v Abed [2014] NSWCA 419 New South Wales v Riley (2003) 57 NSWLR 496 North Ocean Shipping Co Ltd v Hyundai Construction Co Ltd (The "Atlantic Baron") [1979] QB 705 NSW Trustee and Guardian as executor of the Will of Michael Robert Walsh (Dec'd) v Gregory [2012] NSWSC 681 Paff v Speed (1961) 105 CLR 549 Pilmer v Duke Group Ltd (in liq) (2001) 207 CLR 165 R v Hoar (1981) 148 CLR 32 Re Anton Fabrications (NSW) Pty Ltd — Bentley Smythe Pty Ltd v Anton Fabrications (NSW) Pty Ltd [2011] NSWSC 186 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134 Registrar of Titles (WA) v Spencer (1909) 9 CLR 641 Saravinovksa v Saravinovski (No 6) [2016] NSWSC 964 Re Smith and Fawcett Ltd [1942] Ch 304 Rookes v Barnard [1964] AC 1129 Schumann v Abbott and Davis (1961) SASR 149 Smith v William Charlick Ltd (1924) 34 CLR 38 State of New South Wales v Ibbett (2006) 65 NSWLR 168 The Koursk [1924] P 140 Thompson v Australian Capital Television Pty Ltd (1996) 186 CLR 574 Todorovic v Waller (1981) 150 CLR 402 Unilever PLC v Gillette (UK) Ltd [1989] RPC 583 United Dominions Corporation v Brian Pty Ltd (1984) 157 CLR 1 Uren v John Fairfax & Sons Pty Ltd (1966) 117 CLR 118 Warman International Ltd v Dwyer (1995) 182 CLR 544 Watts v Leitch [1973] Tas SR 16 Whitbread v Rail Corporation New South Wales [2011] NSWCA 130 White v Johnston (2015) 87 NSWLR 779 XL Petroleum (NSW) Pty Ltd v Caltex Oil (Australia) Pty Ltd (1985) 155 CLR 448 Zanker v Vartzokas (1988) 34 A Crim R 11 Texts Cited: Kit Barker, Peter Cane, Mark Lunney and Francis Trindade, The Law of Torts in Australia (5th ed, 2012, Oxford University Press) R P Balkin and J L R Davis, Law of Torts (4th ed, 2009, Lexisnexis Butterworths) Gino Dal Pont, Law of Agency (3rd ed, 2013, Lawbook Co) Davies, Accessory Liability (2015, Hart) Joachim Dietrich and Pauline Ridge, Accessories in Private Law (1st ed, 2015, Cambridge University Press) James Edelman, McGregor on Damages (2020, 21st ed, Sweet & Maxwell) Felicity Maher, "An Empirical Study of Exemplary Damages in Australia" (2020) 43(2) Melbourne University Law Review 694 Henry Cooper, "Liability for Assisting Torts" (2017) 41(2) Melbourne University Law Review 571 Nelson Enonchong, Duress, Undue Influence and Unconscionable Dealing (3rd ed, 2019, Sweet & Maxwell) Harold Luntz, Assessment of Damages (4th ed, 2016, Lexisnexis Butterworths) Category: Principal judgment Parties: 2020/114103 Elite Realty Development Pty Ltd ACN 611 829 193 (First Plaintiff) Hazem Abdallah Afyouni (Second Plaintiff) Afyouni Holdings Pty Ltd as trustee of the Afyouni-Trust (Third Plaintiff) Omar Sadek (First Defendant) Bilal Dennaoui (Second Defendant) Big Homes Sydney Pty Ltd ACN 624 598 438 (Third Defendant) Maroubra Road Development Pty Ltd ACN 613 541 754 (Fourth Defendant) Sadek & Co Pty Ltd ACN 608 231 303 (Fifth Defendant)