Garslev Holdings Pty Ltd v Overdean Developments Pty Ltd [2023] NSWCA 259

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Garslev Holdings Pty Ltd v Overdean Developments Pty Ltd [2023] NSWCA 259 Hearing dates: 9 June 2023 Date of orders: 30 October 2023 Decision date: 30 October 2023 Before: Meagher JA at [1]; Kirk JA at [2]; Griffiths AJA at [3] Decision: (1) The amended notice of appeal dated 1 December 2022 be dismissed. (2) The cross-appeal be dismissed. (3) Subject to objection by any party within 14 days, the appellants are to pay the respondents' costs of the appeal, including reserved costs, and the cross-appellants are to pay the cross-respondents' costs of the cross-appeal. Catchwords: EQUITY – fiduciary duties – whether fiduciary relationship overlay contractual relationship between the principal and attorneys – duty of attorneys not to act in conflict with interests of their principal not inconsistent with contractual terms EQUITY – fiduciary duties – breach by attorneys – which breaches were part of a dishonest and fraudulent design – where fiduciaries used relationship to assign interests in land without proper consideration – where fiduciaries used relationship to claim fees at their absolute discretion EQUITY – fiduciary duties – Barnes v Addy – knowing assistance – director and sole shareholder of company had actual knowledge of dishonest and fraudulent design – that knowledge imputed to company – where company dictated terms on which consideration might be provided EQUITY – fiduciary duties – Barnes v Addy – knowing assistance – whether director of company is personally liable where knowledge and participation in dishonest and fraudulent design confined to actions taken in capacity as director of company – where no assistance given other than in capacity as director Legislation Cited: Corporations Act 2001 (Cth) ss 126, 128, 129 Civil Procedure Act 2005 (NSW) s 100 Legal Profession Uniform Law 2014 (NSW) s 172 Powers of Attorney Act 2003 (NSW) ss 8, 15, 16 Cases Cited: Barnes v Addy (1874) 9 Ch App 244 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Cordiant Communications (Australia) Pty Ltd v The Communications Group Holdings Pty Ltd [2005] NSWSC 1005 Despot v Registrar-General of NSW [2013] NSWCA 313 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Howard v Commissioner of Taxation (2014) 253 CLR 93; [2014] HCA 21 In the matter of Beechworth Land Estates Pty Ltd [2018] NSWSC 1630 In the matter of Beechworth Land Estates Pty Ltd (Admin Apt) and Griffith Estates Pty Ltd (Admin Appt) No 2 [2015] NSWSC 336 In the matter of Beechworth Land Estates Pty Ltd (administrators appointed) [2017] NSWSC 1447 In the matter of Beechworth Land Estates Pty Ltd (admins apptd) and Griffith Estates Pty Ltd (admins apptd); Cussen and of Beechworth Land Estates Pty Ltd v Douglas Estate Holdings Pty Ltd [2019] NSWSC 1129 In the matter of Beechworth Land Estates Pty Ltd (in liq) and Griffith Estates Pty Ltd (in liq) (No 5) [2018] NSWSC 959 In the matter of Beechworth Land Estates Pty Ltd (in liquidation) and Griffith Estates Pty Ltd (in liquidation) [2018] NSWSC 1703 In the matter of Garslev Holdings Pty Ltd [2023] NSWSC 609 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd (2015) 256 CLR 104; [2015] HCA 37 O'Brien v Dawson (1942) 66 CLR 18; [1942] HCA 8 Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd [2020] NSWSC 670 Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd (No 2) [2020] NSWSC 745 Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd (No 3) [2021] NSWSC 1482 Overdean Developments Pty Ltd v Garslev Holdings Pty Ltd (No 4) [2022] NSWSC 24 Pittmore Pty Ltd v Chan (2020) 104 NSWLR 62; [2020] NSWCA 344 Re-Engine Pty Ltd (in liq) v Fergusson (2007) 209 FLR 1; [2007] VSC 57 Taheri v Vitek (2014) 87 NSWLR 403; [2014] NSWCA 209 Tsaprazis v Goldcrest Properties Pty Ltd [2000] NSWSC 206 Texts Cited: JD Heydon, The Hon. Justice Leeming, Dr P G Turner, Meagher, Gummow and Lehane's Equity: Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) Category: Principal judgment Parties: Garslev Holdings Pty Ltd (ACN 003 312 383) (first appellant) Leonardus Gerardus Smits (second appellant) Peter Shah Mahommed (third appellant) Vestecorp Financial Services Pty Ltd (ACN 003 856 442) (fourth appellant) Jacobus Johannes Smits (fifth appellant/first cross-respondent)