Takalu KF Pty Ltd v Property Management Corporation Pty Ltd & Ilgun; sub nom Fairfield City Council v Property Management Corporation Pty Ltd [2024] NSWSC 822

Supreme Court New South Wales

Medium Neutral Citation: Takalu KF Pty Ltd v Property Management Corporation Pty Ltd & Ilgun; sub nom Fairfield City Council v Property Management Corporation Pty Ltd [2024] NSWSC 822 Hearing dates: 2 July 2024 Date of orders: 2 July 2024 Decision date: 02 July 2024 Jurisdiction: Equity - Applications List Before: Hammerschlag CJ in Eq Decision: Judgment for the First Cross-Claimant against the Second Cross-Defendant for $260,700 plus interest. Cross-Claim against First Cross-Defendant and Third Cross-Defendant dismissed with no order as to costs. Catchwords: EQUITY – Fiduciary duties – Where Cross-Claimant company gives authority to Second Cross-Defendant to be a signatory on its bank account and he signs cheques in favour of himself, his wife and a company associated with him in circumstances where no money is owed and the Company derives no benefit from the payments – Cross-Claimant claims the amount of the payments from the Second Cross-Defendant and also the other recipients on the basis of knowing participation in his breach of trust – HELD: He had fiduciary duties to the company not to do this and is liable to compensate the company for its loss – Requisite knowledge on the part of the other recipients not established. Legislation Cited: Civil Procedure Act 2005 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Barnes v Addy (1874) LR 9 Ch App 244 Redman v Permanent Trustee Co of NSW (1916) 22 CLR 84 William Brandt's Sons & Co v Dunlop Rubber Co Ltd [1905] AC 454 Category: Principal judgment Parties: Takalu KF Pty Ltd (First Cross-Claimant)