Corporate Documentation Management Pty Ltd (in Liquidation) v Bagshaw [2024] NSWSC 787

Supreme Court New South Wales

Medium Neutral Citation: Corporate Documentation Management Pty Ltd (in Liquidation) v Bagshaw [2024] NSWSC 787 Hearing dates: 1, 5 and 7 September; 25 October; and 15 December 2023 Decision date: 27 June 2024 Jurisdiction: Equity Before: Lindsay J Decision: Subject to allowing the parties an opportunity to make submissions about the form of the orders proposed to be made, the correction of any arithmetical errors, any agreed adjustments, the calculation of pre-judgment interest and costs: 1. ORDER that judgment be entered for the first plaintiff against the first defendant in the sum of $1,437,305. 2. ORDER that judgment be entered for the second plaintiff against the second defendant in the sum of $127,600. 3. ORDER that the Further Amended Statement of Claim and Cross Claim otherwise be dismissed. Catchwords: EQUITY – Fiduciary duties – Breach – Stolen funds – Trust attaches to stolen funds – Equitable compensation available remedy. EVIDENCE – Burden of Proof – Civil Proceedings – Claim for recovery of misappropriated funds – Plaintiff bears the onus of proving funds were misappropriated – Defendant bears the onus of proving repayment, set off or Cross claim. Legislation Cited: Corporations Act 2001 Cth Civil Procedure Act 2005 NSW Evidence Act 1995 NSW Limitation Act 1969 NSW Cases Cited: Adams v Bank of New South Wales [1984] 1 NSWLR 285 Black v S Freedman & Co (1910) 12 CLR 105 Briginshaw v Briginshaw (1938) 60 CLR 336 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR Coshott v Sakic (1998) 44 NSWLR 667 Fabre v Arenales (1992) 27 NSWLR 437 Heydon v Perpetual Executors, Trustees and Agency Co (WA) Ltd (1930) 45 CLR 111 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Houghton v Immer (No 155) Pty Ltd (1997) 44 NSWLR 46 Jones v Dunkel (1959) 101 CLR 298 Mahoney v Lindsay (1980); 55 ALJR 118; (33) ALR 601 Mulherin v Quinn Villages Pty Ltd [2007] QSC 231 Peter Turnbull & Co Pty Ltd v Mundus Trading Co (Australasia) Pty Ltd 90 CLR 235 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 Robb Evans of Robb Evans and Associates v European Bank Ltd (2004) 61 NSWLR 75 Warman International Ltd v Dwyer (1995) 182 CLR 544 Webster v Strang; Steiner v Strang [2018] NSWSC 495 Young v Queensland Trustees Ltd (1956) 99 CLR 560 Zobory v Commissioner of Taxation (Cth) (1995) 64 FCR 86 Texts Cited: Young, Croft and Smith, On Equity, (LBC, Sydney, 2009) Meagher, Gummow and Lehane, Equity: Doctrines and Remedies (LexisNexis Butterworths, Australia, 5th ed, 2015) Category: Principal judgment Parties: First Plaintiff: Corporate Documentation Management Pty Ltd (In Liquidation) ACN 067 864 573 Second Plaintiff: Gardeners 414 Pty Ltd ACN 087 720 732 First Defendant: Kathy Bagshaw Second Defendant: Stavshaw Pty Ltd ACN 077 604 589 Representation: Counsel: Plaintiffs: David Studdy SC and Rohit Sud Defendants: Scott Robertson SC and Bryce Douglas-Baker