Salmon v Albarran [2023] NSWSC 1238

Supreme Court New South Wales

Medium Neutral Citation: Salmon v Albarran [2023] NSWSC 1238 Hearing dates: 28 – 31 August 2023; 1 September 2023; 5 September 2023; 12 September 2023; 15 September 2023 Date of orders: 19 October 2023 Decision date: 19 October 2023 Jurisdiction: Equity Before: Nixon J Decision: (1) Orders that the Fourth Further Amended Statement of Claim be dismissed. (2) Directs that, by 4pm on 2 November 2023, the parties bring in short minutes of order that deal with costs, if they can be agreed. (3) Directs that, if the parties cannot agree on the form of orders in relation to costs: (a) the Defendants file and serve any written submission, limited to 5 pages, in respect of the terms of the order for costs, together with any affidavit in support, by 4pm on 2 November 2023; and (b) the Plaintiffs file and serve any written submission in response on costs, limited to 5 pages, together with any affidavit in support, by 4pm on 9 November 2023. Catchwords: EQUITY – Fiduciary duties – Fiduciary relationships – Solicitor and client – Retainers – Retainers may be express or implied from contemporaneous documentation – Solicitor disputed that he acted for each of the defendants in legal proceedings – Retainer established EQUITY – Fiduciary duties – Whether privately appointed receiver and manager owes fiduciary duties to appointor – Privately appointed receiver is in a fiduciary relationship with the appointor – No prescriptive duty is owed to keep appointor informed about progress of receivership EQUITY – Fiduciary duties – Breach – Whether solicitor or receiver acted in a position of conflict – Whether solicitor or receiver pursued an unauthorised benefit – Whether there was informed consent – Whether breach was dishonest – No dishonest breach of fiduciary duties established EQUITY – Rule in Barnes v Addy – Whether there was knowing assistance in dishonest breach of fiduciary duties – No liability established DEEDS – Whether receivers and managers were appointed under a deed – Objective intention of the parties – Appointment instruments entered at same time as deeds of indemnity – Appointment instruments were not deeds – Whether receivers and managers breached any duties arising under appointment instruments – No breach established EQUITY – Equitable Remedies – Equitable compensation – Causation – Loss of opportunity – No loss of a valuable opportunity established LIMITATION OF ACTIONS – Equity – Whether relevant limitation period had expired – Laches – Unnecessary to decide whether claims statute barred or relief ought to be barred by laches where no claims of wrongdoing have been established CIVIL PROCEDURE – Amendment of pleadings – Power to amend pleadings under ss 64 and 65 of Civil Procedure Act Legislation Cited: Civil Procedure Act 2005 (NSW), ss 64, 65 Conveyancing Act 1919 (NSW), s 38 Corporations Act 2001 (Cth), ss 558FE, 558FF Evidence Act 1995 (NSW), s 140(2) Limitation Act 1969 (NSW), s 23 Partnership Act 1892 (NSW), s 10 Cases Cited: 400 George Street (Qld) Pty Ltd v BG International Ltd [2010] QCA 245 Almona Pty Ltd v Parklea Corporation Pty Ltd [2019] NSWSC 1868 AMP Services Ltd v Manning [2006] FCA 256 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1, [2018] HCA 43 Anderson v Canaccord Genuity Financial Ltd [2022] NSWSC 58 Atanaskovic Hartnell v Birketu Pty Ltd (2021) 105 NSWLR 542; [2021] NSWCA 201 Aussie Ideas Pty Ltd v Tunwind Pty Ltd [2006] NSWCA 286 Australian Securities and Investments Commission v Albarran (No 2) [2008] FCA 386 Badenach v Calvert (2016) 257 CLR 440; [2016] HCA 18 Bank of Western Australia Ltd v Abdul & Anor [2012] VSC 222 Barnes v Addy (1874) LR 9 Ch 9 Beach Petroleum NL v Abbott Tout Russell Kennedy & Ors (1999) 48 NSWLR 1; [1999] NSWCA 408 Beesly v Hallwood Estates Ltd [1961] 1 All ER 90; [1961] 1 Ch 105 Berry v CCL Secure Pty Ltd (2020) 271 CLR 151; [2020] HCA 27 Break Fast Investments Pty Ltd v Rigby Cooke Lawyers [2022] VSCA 118 Breen v Williams (1996) 186 CLR 71; [1996] HCA 57 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Brisbane South Regional Authority v Taylor (1996) 186 CLR 541; [1996] HCA 25 Canson Enterprises Ltd v Boughton & Co (1991) 85 DLR (4th) 129 Castel Electronics Pty Ltd v Toshiba Singapore Pte Ltd (2011) 192 FCR 445; [2011] FCAFC 55 Comptroller of Stamps v Associated Broadcasting Services Ltd [1990] VR 335 Comptroller of Stamps v Associated Broadcasting Services Ltd [1990] VR 345 Downsview Nominees Ltd v First City Corp Ltd [1993] AC 295; [1993] 2 WLR 86 ET-China.com International Holdings Limited v Cheung [2021] NSWCA 24 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Finance Ltd and Others [1988] 1 WLR 1231; [1989] 1 All ER 261 Friend v Brooker (2009) 239 CLR 129; [2009] HCA 21 Gan v Xie [2023] NSWCA 163 Gerace v Auzhair Supplies Pty Ltd [2014] NSWCA 181 Girotto v Phillips Fox (a firm) & Anor [2011] VSC 293 Gomba Holdings UK Ltd v Homan [1986] 1 WLR 1301; [1986] 3 All ER 94 Gomba Holdings UK Ltd and Others v Minories Finance Ltd and Others [1988] 1 WLR 1231; [1989] 1 All ER 261 GM & AM Pearce & Co Pty Ltd v Australian Tallow Producers & Ors [2005] VSCA 113 Greater Lithgow City Council v Wolfenden [2007] NSWCA 180 Greater Pacific Investments Pty Ltd (in liq) v Australian National Industries Ltd (1996) 39 NSWLR 143 Haines v Australian Broadcasting Authority (1995) 43 NSWLR 404; [1995] NSWSC 136 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Herron v McGregor (1986) 6 NSWLR 246 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83; [2014] HCA 21 Kane's Hire Pty Ltd v Anderson Aviation Australia Pty Ltd [2023] FCA 381 In re Magadi Soda Company Limited (1925) 41 TLR 297 In the matter of Kit Digital Australia Pty Limited (in liq) [2014] NSWSC 1547 Independent Print Media Group Publishing Pty Ltd v Estate Agents Co-operative Ltd [2007] NSWSC 1098 Jaken Properties Australia Pty Ltd v Naaman [2023] NSWCA 214 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Law Society of New South Wales v Harvey [1976] 2 NSWLR 154 Lewis Securities Ltd (in liq) v Carter [2018] NSWCA 118 Longman v The Queen (1989) 168 CLR 79; [1989] HCA 60 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Mal Owen Consulting Pty Ltd v Ashcroft (2018) 97 NSWLR 1163; [2018] NSWCA 135 Malec v J C Hutton Pty Ltd (1990) 169 CLR 638; [1990] HCA 20 McGee v Yeomans [1977] 1 NSWLR 273 Meerkin & Apel v Rossett Pty Limited [1998] 4 VR 54 Modena Imports Pty Ltd (in liq), In the matter of; Leveraged Capital Pty Ltd (R&M app) (in liq) v Modena Imports Pty Ltd (in liq) [2010] NSWSC 739 Moubarak by his tutor Coorey v Holt (2019) 100 NSWLR 218; [2019] NSWCA 102 Mudgee Dolomite & Lime Pty Limited v Robert Francis Murdoch; In the matter of Mudgee Dolomite & Lime Pty Limited [2020] NSWSC 1510 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449; [1992] HCA 66 Norberg v Wynrib [1992] 2 SCR 226 O'Halloran v RT Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Orr v Ford (1988) 167 CLR 316; [1989] HCA 4 Parker, In the matter of Purcom No 34 Pty Limited (In Liq) (No 2) [2010] FCA 624 Pegrum v Fatharly (1996) 14 WAR 92 Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 169; [2001] HCA 31 Pittmore Pty Ltd v Chan; Chan v Tan (2020) 104 NSWLR 62; [2020] NSWCA 344 Qantas Airways Ltd v Gama (2008) 167 FCR 537; [2008] FCAFC 69 Ramsay v BigTinCan Pty Ltd [2014] NSWCA 324 Re B Johnson & Co (Builders) Ltd [1955] Ch 634 Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789 Re FAL Healthy Beverages Pty Ltd [2017] NSWSC 476 Re Just Juice Corporation Pty Limited (recs and mgrs apptd); James v Commonwealth Bank of Australia and Others (1992) 109 ALR 334 Rippon v Chilcotin Pty Ltd (2001) 53 NSWLR 198, [2001] NSWCA 142 Rottenberg v Monjack [1993] BCLC 374 Sangha v Baxter [2009] NSWCA 78 Segboer & Anor v A J Richardson Properties Pty Ltd & Anor [2012] NSWCA 253 Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; [1994] HCA 4 South Johnstone Mill Ltd v Dennis and Scales [2007] FCA 1448 State Bank of NSW v Kit Cheng Chia and Peng Tin Chia; Peng Tin Chia v Kenneth John Rennie and Anor (2000) 50 NSWLR 587; [2000] NSWSC 552 Taouk v Ho [2019] NSWCA 156 Trajkovski v Simpson [2019] NSWCA 52 Vincent v Premo Enterprises (Voucher Sales) Ltd [1969] 2 QB 609 Visbord v Federal Commissioner of Taxation (1943) 68 CLR 354; [1943] HCA 4 Watson v Foxman (1995) 49 NSWLR 315 Watson & Ors v Ebsworth & Ebsworth (a firm) & Anor [2010] VSCA 335 Wily v Terra Cresta Business Solutions Pty Ltd [2006] NSWSC 1042 Wily v Terra Cresta Business Solutions Pty Ltd (No 2) [2006] NSWSC 1102 Youyang Pty Ltd v Minter Ellison Morris Fletcher (2003) 212 CLR 484; [2003] HCA 15 Texts Cited: H Picarda, The Law Relating to Receivers, Managers and Administrators (2nd ed, 1990, Butterworths) P Finn, "Contract and the Fiduciary Principle" [1989] UNSWLJ 76 Category: Principal judgment Parties: Owen Salmon (First Plaintiff) TCBS Group Holdings Pty Ltd (Second Plaintiff) Richard Albarran (First Defendant) Geoffrey McDonald (Second Defendant) Steven Brown (Third Defendant) Joseph Elliott, Anthony Townsend, David Kenney, Luigino Malacco and Andrew Leroy (Fourth, Fifth, Sixth, Seventh and Eighth Defendants) Representation: Counsel: H K Insall SC and J Simpkins (Plaintiffs) M R Elliott SC and N Simone (First, Second, Fourth, Fifth, Sixth, Seventh and Eighth Defendants) M A Karam (Third Defendant)