Anderson v Canaccord Genuity Financial Ltd [2023] NSWCA 294

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Anderson v Canaccord Genuity Financial Ltd [2023] NSWCA 294 Hearing dates: 8 – 12, 15 – 17 May 2023 Decision date: 08 December 2023 Before: Gleeson JA; Leeming JA; White JA Decision: In 2022/00048359: 1. Appeal allowed as against all respondents save the fifth respondent Acorn Capital Ltd and the sixth respondent Albany Capital Investors Pty Ltd. 2. Set aside orders 1 and 2 made on 7 February 2022, except insofar as order 2 enters judgment in favour of the fifth respondent Acorn Capital Ltd and the sixth respondent Albany Capital Investors Pty Ltd, and in lieu thereof enter judgment in favour of Mrs Anderson against each of the first, second, third and fourth respondents in the amount of $3,016,304.23. 3. Set aside orders 1, 3, 5, 11 and 13 made on 24 May 2022 (concerning the first, second, third and fourth respondents' costs of the trial). 4. Cross-appeal dismissed. 5. Direct the parties to file and serve written submissions as to the costs of the appeal and costs at first instance not exceeding 10 pages, and any other materials in support of those submissions, on or before 2 February 2024, and written submissions in reply not exceeding 5 pages, or in the case of Mrs Anderson, 10 pages, on or before 16 February 2024, with a view to resolving the question of costs on the papers. 6. Any application for further orders to be made by notice of motion filed no later than 2 February 2024, together with affidavits and submissions in support, with the parties thereafter to supply affidavits and submissions in response and in reply in accordance with the timetable in order 5 above and with a view to the application being resolved on the papers. In 2022/00173413: 1. Direct Mr Anderson to file a notice of appeal in accordance with the draft notice of appeal within 7 days of today, and dispense with the requirements as to service. 2. Appeal allowed. 3. Set aside order 12 made on 24 May 2022. 4. The first, second, third and fourth respondents to pay Mr Anderson's costs of proceeding 2022/173413, and (to the extent that separate costs were incurred by Mr Anderson) to pay his costs in the Equity Division in respect of the application for a third party costs order. Catchwords: EQUITY – fiduciary duty – existence – whether employee owes fiduciary obligations to employer – whether employee recognised as accepted category of fiduciary – separate element as to whether employee's conduct falls within scope of fiduciary obligation – whether open to Australian courts below the High Court to reject separate elements of existence and scope of fiduciary obligations of senior employees – Nottingham University v Fishel [2000] EWHC 221 (QB); [2000] IRLR 471 disapproved EQUITY – fiduciary duty – knowing involvement in breach – level of assistance sufficient to render third party liable – extent of knowledge sufficient to render third party liable – circumstances when knowledge imputed to third party – scope of "fraud exception" EQUITY – fiduciary duty – breach – causation – where loss of opportunity turned upon alleged further breach of trust by trustee to which fiduciary obligations were owed by employees – whether such further breach of trust stood in way of assessment of liability of fiduciaries and knowing assistants – whether proposition produces incoherence and leaves dishonest fiduciaries with a windfall – whether allegation of further breach of trust put to trustee – whether there was informed consent to any further breach of trust EQUITY – fiduciary – breach – loss of a chance – whether any lost opportunity caused by breaches was so speculative that it was not valuable – assessment of loss of chance – discounts for future contingencies – appropriateness of "global" discount because future contingencies not independent – significance of paucity of evidence being a consequence of breaches of fiduciary duty – appropriateness of drawing inferences and resolving doubtful questions against fiduciary Legislation Cited: Corporations Act 2001 (Cth), ss 477, 763A, 766A, 911A Environmental Planning and Assessment Act 1979 (NSW), Pt 3A Evidence Act 2005 (NSW), s 140 Trustee Act 1925 (NSW), s 59 Uniform Civil Procedure Rules 2005 (NSW), r 36.16 Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council (2014) 224 FCR 1; [2014] FCAFC 65 Aerostar Maintenance v Wilson [2010] EWHC 2032 (Ch) All Class Insurance Brokers Pty Ltd (in liq) v Chubb Insurance Australia Ltd (No 2) [2021] FCA 782; 154 ACSR 78 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 Anderson v Canaccord Genuity Financial Ltd (No 2) [2022] NSWSC 649 Attorney-General v Blake [1998] Ch 439 Australian Executor Trustees (SA) Ltd v Kerr [2021] NSWCA 5; 151 ACSR 204 Australian Securities and Investments Commission v Westpac Banking Corporation (No 2) (2018) 266 FCR 147; [2018] FCA 751 Bale v Mills (2011) 81 NSWLR 498; [2011] NSWCA 226 Barnes v Addy (1874) LR 9 Ch App 244 Bayley & Associates Pty Ltd v DBR Australia Pty Ltd [2013] FCA 1341 Beach Petroleum NL v Johnson (1993) 43 FCR 1 Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1; [1999] NSWCA 408 Bilta (UK) Ltd (in liq) v Natwest Markets plc [2020] EWHC 546 (Ch); [2020] AII ER (D) 82 Bilta (UK) Ltd v Nazir (No 2) [2016] AC 1; [2015] UKSC 23 Biogen Inc v Medeva plc [1997] RPC 1 Birtchnell v Equity Trustees, Executors & Agency Co Ltd (1929) 42 CLR 384; [1929] HCA 24 Boardman v Phipps [1967] 2 AC 46 Boensch v Pascoe (2019) 268 CLR 593; [2019] HCA 49 Breen v Williams (1996) 186 CLR 71; [1996] HCA 57 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Browne v Dunn (1893) 6 R 67 Bugge v Brown (1919) 26 CLR 110; [1919] HCA 5 Calvo v Sweeney [2009] NSWSC 719 CCIG Investments Pty Ltd v Schokman [2023] HCA 21; 97 ALJR 551 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 Commonwealth Bank of Australia v Kojic (2016) 249 FCR 421; [2016] FCAFC 186 Commonwealth v Bank of New South Wales (1949) 79 CLR 497; [1950] AC 235 Concut Pty Ltd v Worrell [2000] HCA 64; 75 ALJR 312 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373; [1975] HCA 8 Craig-Bridges v NSW Trustee and Guardian [2017] NSWCA 197 Daly v Sydney Stock Exchange Ltd (1986) 160 CLR 371; [1986] HCA 25 Deatons Pty Ltd v Flew (1949) 79 CLR 370; [1949] HCA 60 DEJ v Council of the New South Wales Bar Association [2021] NSWCA 72 Directed Electronics OE Pty Ltd v OE Solutions Pty Ltd (No 8) [2022] FCA 1404 Director General, Department of Education and Training v MT (2006) 67 NSWLR 237; [2006] NSWCA 270 Director of Public Prosecutions Reference No 1 of 1996 [1998] 3 VR 352 EC Dawson Investments Pty Ltd v Crystal Finance Pty Ltd (No 3) [2013] WASC 183 EFG Australia Ltd v Kennedy [1999] NSWSC 922 Elfic Ltd v Macks [2003] 2 Qd R 125; [2001] QCA 219 Environment Protection Authority v Wollondilly Abattoirs Pty Ltd [2019] NSWCCA 312 Falkingham v Hoffmans (a firm) (2014) 46 WAR 510; [2014] WASCA 140 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Francis v South Sydney District Rugby League Football Club Ltd [2002] FCA 1306 Gatsios Holdings Pty Ltd v Nick Kritharas Holdings Pty Ltd (in liq) [2002] NSWCA 29; [2002] ATPR 41-864 Gregg v R [2020] NSWCCA 245; 355 FLR 348 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Gunasegaram v Blue Visions Management Pty Ltd [2018] NSWCA 179; 129 ACSR 265 Hallmark Construction Pty Ltd v Harford [2020] NSWCA 41; 294 IR 359 Harstedt Pty Ltd v Tomanek (2018) 55 VR 158; [2018] VSCA 84 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Hospitality Group Pty Ltd v Australian Rugby Union Ltd (2001) 110 FCR 157; [2001] FCA 1040 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83; [2014] HCA 21 In Re Coomber; Coomber v Coomber [1911] 1 Ch 723 Investa Properties Pty Ltd v Nankervis (No 7) [2015] FCA 1004; 333 ALR 193 Jenyns v Public Curator (Qld) (1953) 90 CLR 113; [1953] HCA 2 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Kao Lee & Yip v Koo Hoi Yan & Ors [2003] 3 HKLRD 296; [2003] HKCFI 850 Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563; [1995] HCA 68 Kramer v Stone [2023] NSWCA 270 Krishell Pty Ltd v Nilant (2006) 32 WAR 540; [2006] WASCA 223 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 Law Society of New South Wales v Foreman (1994) 34 NSWLR 408 Lifeplan Australia Friendly Society Ltd v Woff [2016] FCA 248; 259 IR 384 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Malec v JC Hutton Pty Ltd (1990) 169 CLR 638; [1990] HCA 20 Mann v Paterson Constructions Pty Ltd (2019) 267 CLR 560; [2019] HCA 32 Maritime Union of Australia v Fair Work Ombudsman [2015] FCAFC 120 Massoud v Nationwide News Pty Ltd; Massoud v Fox Sports Australia Pty Ltd (2022) 109 NSWLR 468; [2022] NSWCA 150 Meridian Global Funds Management Asia Ltd v Securities Commission [1995] 2 AC 500; [1995] UKPC 5 Metal Manufactures Ltd v Johnston (2020) 3 QR 456; [2020] QCA 42 Mistrina Pty Ltd v Australian Consulting Engineers Pty Ltd [2020] NSWCA 223 Murdoch v Mudgee Dolomite & Lime Pty Ltd (in liq) [2022] NSWCA 12; 398 ALR 658 Muriniti v Mercia Financial Solutions Pty Ltd [2021] NSWCA 180 Mutual Life & Citizens' Assurance Co Ltd v Evatt (1970) 122 CLR 628; [1971] AC 793 Noranda Australia Ltd v Lachlan Resources NL (1988) 14 NSWLR 1 Nottingham University v Fishel [2000] EWHC 221 (QB); [2000] IRLR 471 Novoship (UK) Ltd v Mikhaylyuk [2015] QB 499; [2014] EWCA Civ 908 O'Halloran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Oliver Hume South East Queensland Pty Ltd v Investa Residential Group Pty Ltd (2017) 259 FCR 43; [2017] FCAFC 141 Omnilab Media Pty Ltd v Digital Cinema Network Pty Ltd [2011] FCAFC 166; 285 ALR 63 Pilmer v Duke Group Ltd (in liq) (2001) 207 CLR 165; [2001] HCA 31 QB4 Capital Pty Ltd v Guardian Securities Ltd [2023] FCAFC 72 Rahme v Benjamin & Khoury Pty Ltd (2019) 100 NSWLR 550; [2019] NSWCA 211 Ramsay v BigTinCan Pty Ltd [2014] NSWCA 324; 101 ACSR 415 Re Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789; 101 ACSR 233 Re Hampshire Land Co [1896] 2 Ch 743 Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 Sellars v Adelaide Petroleum NL (1994) 179 CLR 332; [1994] HCA 4 Seymour v Australian Broadcasting Commission (1977) 19 NSWLR 219 Singularis Holdings Ltd (in liq) v Daiwa Capital Markets Europe Ltd [2020] AC 1189; [2019] UKSC 50 Talacko v Talacko (2021) 272 CLR 478; [2021] HCA 15 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49 Vanderstock v Victoria [2023] HCA 30 Victoria University of Technology v Wilson [2004] VSC 33; 60 IPR 392 Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Western Sydney University v Thiab (2023) 111 NSWLR 241; [2023] NSWCA 57 Woolworths Ltd v Olson [2004] NSWSC 849; 184 FLR 121 Texts Cited: M Gordon, Foreword to E Bant (ed), The Culpable Corporate Mind (Hart Publishing, 2023) J Lehane, "Fiduciaries in a Commercial Context", in P Finn (ed), Essays in Equity (Law Book Co, 1985) 95 Category: Principal judgment Parties: In 2022/00048359: