Westpac Banking Corporation v Sentox Pty Ltd (No 2) [2024] NSWSC 783

Supreme Court New South Wales

Medium Neutral Citation: Westpac Banking Corporation v Sentox Pty Ltd (No 2) [2024] NSWSC 783 Hearing dates: 8, 9, 13 to 16 May 2024 Decision date: 27 June 2024 Jurisdiction: Equity - Commercial List Before: Ball J Decision: See [130] Catchwords: CONTRACTS — Breach of contract — Where party seeks contract be set aside under Contracts Review Act 1980 (NSW) — Party unable to establish that circumstances at time contracts were entered were unjust — Relief not granted EQUITY — Equitable Fraud — Where invoice discounting facility used to perpetrate fraud EQUITY — Tracing — Mixed funds — Where misappropriated funds can be traced into property owned by a Defendant — Plaintiff awarded proprietary relief TORTS — Miscellaneous torts — Deceit — Elements — Application and satisfaction of Magill v Magill (2006) 226 CLR 551 — Whether parties had knowledge of, or were reckless to, the falsity of representations Legislation Cited: Australian Consumer Law Contracts Review Act 1980 (NSW) Evidence Act 1995 (NSW) Trade Practices Act 1974 (Cth) Cases Cited: Briginshaw v Briginshaw (1938) 60 CLR 336 Care A2 Plus Pty Ltd v Pichardo [2024] NSWCA 35 Chaina v Alvaro Homes Pty Ltd [2008] NSWCA 353 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Foskett v McKeown [2001] 1 AC 102 Gordon in his capacity as liquidator of Lyon From Pty Ltd (in liq) & Anor v Leon Plant Hire Pty Ltd (in liq) & Ors [2015] NSWSC 397 In re Hallett's Estate; Knatchbull v Hallett (1880) 13 Ch D 696 Magill v Magill (2006) 226 CLR 551 Ng v Chong [2010] NSWSC 127 Sewell v Zelden (No 2) [2010] NSWSC 1181 Wentworth v Rogers [1999] NSWCA 403 Wong v Citibank Ltd [2004] NSWCA 396 Category: Principal judgment Parties: Westpac Banking Corporation (Plaintiff | Cross Defendant) Sentox Pty Ltd (First Defendant) Kathie Musumeci bht Adrian Musumeci (Second Defendant | Cross-Claimant) Andrew Musumeci (Third Defendant) Cheeky Farms Pty Ltd (Fourth Defendant) ACE Agriculture Pty Ltd (Fifth Defendant) Musumeci Property Investments Pty Ltd (Sixth Defendant) CAO Holdings Pty Ltd (Seventh Defendant) Sahar El-Ahmad also known as Sahar Abbas (Eighth Defendant) Gerard Quin (Ninth Defendant) Gerard Quin Accounting Services Pty Ltd (Tenth Defendant) G&K Accountants Pty Ltd (Eleventh Defendant) GDC Tax Pty Ltd (Twelfth Defendant) Giuseppe Musumeci (Thirteenth Defendant) Representation: Counsel: T Mehigan SC with J Foley (Plaintiff | Cross Defendant) D Allen (Second to Seventh and Thirteenth Defendants | Cross-Claimant) Dr SB Levi (Eighth Defendant)