Driver v Botanical water Technologies Pty Ltd [2024] NSWSC 1409

Supreme Court New South Wales

Medium Neutral Citation: Driver v Botanical water Technologies Pty Ltd [2024] NSWSC 1409 Hearing dates: 12 to 15; 19, 21 and 22 August 2024 Decision date: 08 November 2024 Jurisdiction: Equity - Commercial List Before: Ball J Decision: See paras [193] to [195] Catchwords: CONTRACTS — Breach of contract — Remedies — Damages — Remoteness of damage — Rule in Hadley v Baxendale (1854) 156 ER 145 — Koufos v Czarnikow Ltd [1969] 1 AC 350 — Where loss or damage claimed is too remote from breach of contract CONTRACTS — Unconscionable conduct — Australian Securities and Investments Commission Act 2001 (Cth) s 12CB — In connection with financial services — Meaning of "in connection with" — Where meaning given a wide operation to include acquisition of shares — Where conduct complained of not sufficiently connected to antecedent unconscionable dealings CONTRACTS — Unconscionable conduct — Australian Securities and Investments Commission Act 2001 (Cth) s 12CA — Unconscionable conduct within the meaning of the unwritten law — Whether circumstances of vulnerable parties amounted to special disadvantage — Where Plaintiffs found not to have suffered from some special disadvantage CORPORATIONS — Members' rights and remedies — Oppression — Relief sought under Corporations Act 2001 (Cth) ss 232, 233 for conduct they believe is contrary to the interests of the members as a whole — Where Plaintiffs have not identified in final submissions what relief they seek, nor established that the conduct was contrary to the interests of the members as a whole EQUITY — Fiduciary duties — Fiduciary relationships — Construction — Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 — Where fiduciary duties are owed EQUITY — Fiduciary duties — Fiduciary relationships — Partners and joint venturers — Where relationship between parties is as a joint venture or some similar commercial arrangement — Fiduciary relationship found pursuant to broader characterisation of parties' relationship Legislation Cited: Australian Consumer Law Australian Securities and Investments Commission Act 2001 (Cth) Corporations Act 2001 (Cth) Cases Cited: Ancient Order of Foresters in Victoria Friendly Society Limited v Lifeplan Australia Friendly Society Limited (2018) 265 CLR 1; [2018] HCA 43 Anderson v Canaccord Genuity Financial Ltd (2023) 113 NSWLR 151; [2023] NSWCA 294 Aqua Botanical Beverages (Australia) Pty Ltd v Botanical Water Technologies [2022] NSWSC 435 Australian Careers Institute Pty Ltd v Australian Institute of Fitness Pty Ltd [2016] NSWCA 347; (2016) 116 ACSR 566 Australian Competition and Consumer Commission (ACCC) v Google LLC (No 2) [2021] FCA 367 Australian Competition and Consumer Commission (ACCC) v Quantum Housing Group Pty Ltd (2021) 285 FCR 133; [2021] FCAFC 40 Australian Securities and Investments Commission (ASIC) v Kobelt (2019) 267 CLR 1; [2018] HCA 18 Australian Securities and Investments Commission (ASIC) v Westpac Banking Corporation (No 2) (2018) FCR 147; [2018] FCA 751 Beach Petroleum NL v Abbott Tout Russell Kennedy (1999) 48 NSWLR 1; [1999] NSWCA 408 Birtchnell v Equity Trustees, Executors & Agency Co Ltd (1929) 42 CLR 384 BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 Breen v Williams (1996) 186 CLR 71; [1996] HCA 57 Brunninghausen v Glavanics (1999) 46 NSWLR 538; [1999] NSWCA 199 Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653 Central Coast Council v Norcross Pictorial Calendars Pty Ltd [2021] NSWCA 75; (2021) 391 ALR 157 Cessnock City Council v 123 259 932 Pty Ltd [2024] HCA 17 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447; [1983] HCA 14 Commonwealth v Amann Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Crawley v Short [2009] NSWCA 410 Dewhirst v Edwards [1983] 1 NSWLR 34 Edwin Davey Pty Ltd v Boulos Holdings Pty Ltd [2022] NSWCA 65 European Bank Ltd v Robb Evans of Robb Evans and Associates (2010) 240 CLR 432; [2010] HCA 6 Friend v Brooker (2009) 239 CLR 129; [2009] HCA 21 Garner v Central Innovation Pty Ltd [2022] FCAFC 64 Hadley v Baxendale (1854) 9 EXCH 341; (1854) 156 ER 145 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Howard v Federal Commissioner of Taxation (2014) 253 CLR 83; [2014] HCA 21 In the matter of Aqua Botanical Beverages (Australia) Pty Ltd (receivers and managers appointed) [2021] NSWSC 1214 Ipstar Australia Pty Ltd v APS Satellite Pty Ltd [2018] NSWCA 15; (2018) 356 ALR 440 Jaken Properties Australia Pty Ltd v Naaman (2023) 112 NSWLR 318 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1 Johnson v Gore Wood & Co [2002] 2 AC 1 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 J & E Vella Pty Ltd v Hobson [2020] NSWCA 188 Koufos v Czarnikow Ltd [1969] 1 AC 350 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361; [2011] HCA 11 Maguire v Makaronis (1997) 188 CLR 449 McMillan v Coolah Home Base Pty Ltd [2024] NSWCA 138 Oates v Consolidated Capital Services Ltd [2009] NSWCA 183 O'Halloran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Pilmer v Duke Group Limited (in liq) (2001) 207 CLR 165; [2001] HCA 31 Productivity Partners Pty Ltd (t/as Captain Cook College) v Australian Competition and Consumer Commission (ACCC) [2024] HCA 27 REW08 Projects Pty Ltd v PNC Lifestyle Investments Pty Ltd (2017) 95 NSWLR 458 Stuart Pty Ltd v Condor Commercial Insulation Pty Ltd [2006] NSWCA 334 Target Holdings Ltd v Redferns [1996] 1 AC 421 Union Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 Warner Capital Pty Ltd v Shazbot Pty Ltd [2020] NSWCA 121 Wenham v Ella (1972) 127 CLR 454 Texts Cited: J D Heydon, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity Doctrines and Remedies, 5th (2015), LexisNexis Butterworths Category: Principal judgment Parties: David Driver (First Plaintiff) Ambrosios Kambouris (Second Plaintiff) Kambouris Shares Pty Ltd (Third Plaintiff) DJD Trading Pty Ltd (Fourth Plaintiff) Botanical Water Technologies Pty Ltd (First Defendant) Botanical Water Technologies Ltd (Second Defendant) Botanical Water Technologies IP Ltd (Third Defendant) MyCo Pty Ltd (Fourth Defendant) Terry Paule (Fifth Defendant) Aqua Botanical Beverages (Australia) Pty Ltd (In Liquidation) (Sixth Defendant) Representation: Counsel: DFC Thomas SC with H Atkin (Plaintiffs) J Hynes with MR Davis (Third to Fifth Defendants)