In the matter of 1derful Pty Limited [2024] NSWSC 1414

Supreme Court New South Wales

Medium Neutral Citation: In the matter of 1derful Pty Limited [2024] NSWSC 1414 Hearing dates: 24-25 September, 1, 2, 8, 10-11, 15 October 2024 Date of orders: 8 November 2024 Decision date: 08 November 2024 Jurisdiction: Equity - Corporations List Before: Black J Decision: Parties to submit Short Minutes of Order to give effect to this judgment and as to costs or, if there is no agreement between them, their respective Short Minutes of Order and submissions. Catchwords: EQUITY – Fiduciary duties, statutory unconscionability and conspiracy – whether contraventions established – quantification of loss. Legislation Cited: - Australian Securities & Investments Commission Act 2001 (Cth), ss 12BAB, 12CA-12CC, 12GD, 12GF, 12GM - Australian Consumer Law, ss 21-22, 232, 236, 243 - Conveyancing Act 1919 (NSW), s 37A - Corporations Act 2001 (Cth), ss 420A, 423 - Evidence Act 1995 (NSW), s 140 Cases Cited: - ABN Amro Bank NV v Bathurst Regional Council & Others (2014) 309 ALR 445; [2014] FCAFC 65 - Aequitas Ltd v Sparad No 100 Ltd (formerly Australian European Finance Corp Ltd) (2001) 19 ACLC 1006; [2001] NSWSC 14 - 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 (2023) 113 NSWLR 151; [2023] NSWCA 294 - Armagas Ltd v Mundogas SA [1985] 1 Ll R 1 - Artistic Builders Pty Ltd v Elliot & Tuthill (Mortgages) Pty Ltd [2002] NSWSC 16 - Australian Competition and Consumer Commission v Quantum Housing Group Pty Ltd (2021) 388 ALR 577; (2021) 151 ACSR 98; [2021] FCAFC 40 - Australian Securities & Investments Commission v Citigroup Global Markets Australia Pty Ltd (No 4) (2007) 160 FCR 35; 62 ACSR 427; [2007] FCA 963 - Australian Securities and Investments Commission v Kobelt (2019) 267 CLR 1; (2019) 368 ALR 1; [2019] HCA 18 - Australian Securities and Investments Commission v National Australia Bank Ltd (2022) 164 ACSR 358; [2022] FCA 1324 - Australian Securities and Investments Commission v Westpac Banking Corp (Omnibus) (2022) 159 ACSR 381; [2022] FCA 515 - Barnes v Addy (1874) LR 9 Ch App 244 - Bathurst City Council v PWC Properties Pty Ltd (1998) 195 CLR 566; [1998] HCA 59 - Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200 - Betfair Pty Ltd v Racing New South Wales (2010) 189 FCR 356; (2010) 273 ALR 664; [2010] FCAFC 133 - Boz One Pty Ltd v McLellan (2015) 105 ACSR 325; [2015] VSCA 68 - Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 - Bristol & West Building Society v Mothew [1998] Ch 1 - Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 - DIF III – Global Co-Investment Fund LP v Babcock & Brown International Pty Limited [2019] NSWSC 527 - ET-China.com International Holdings Ltd v Cheung (2021) 388 ALR 128; [2021] NSWCA 24 - Fatimi Pty Ltd v Bryant (2004) 59 NSWLR 678; [2004] NSWCA 140 - Firmtech Aluminium Pty Ltd v Xie; Zhang v Xu; Xie v Auschn Conveyancing & Associates Pty Ltd [2024] NSWSC 1293 - Gerrard Toltz Pty Ltd v City Garden Australia Pty Ltd (in liq) (No 2) [2024] NSWCA 232 - Giumelli v Giumelli (1999) 196 CLR 101; [1999] HCA 10 - Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 - Haiye Developments Pty Ltd v Commercial Business Centre Pty Ltd [2022] NSWSC 937 - Hall v Poolman (2007) 215 FLR 243; [2007] NSWSC 1330 - HBK Master Fund LP v Pivotal Software Inc, Delaware Court of Chancery, 14 August 2023 - Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41; [1984] HCA 64 - John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; [2010] HCA 19 - JR Consulting & Drafting Pty Ltd v Cummings (2016) 329 ALR 625; [2016] FCAFC 20 - K&A Laird (N.S.W.) Pty Ltd (in liq) v Aidzan Pty Ltd (in liq) [2023] NSWSC 603 - Karzi v Toll Pty Ltd [2024] NSWCA 120 - Krakowski v Eurolynx Properties Ltd (1995) 183 CLR 563 at 582; [1995] HCA 68 - Mackinnon as Plaintiff representative of 153 Plaintiff group members v Partnership of Larter, Jones, Miraleste Pty Ltd t/as USG Partner and Johnson, t/as "STC Sports Trading Club" (No 8) [2019] NSWSC 1658 - Marcolongo v Chen (2011) 242 CLR 546; [2011] HCA 3 - McCrohan v Harith [2010] NSWCA 67 - MMAL Rentals Pty Ltd v Bruning (2004) 63 NSWLR 167; [2004] NSWCA 451 - Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449; [1992] HCA 66 - News Ltd v Australian Rugby Football League Ltd (1996) 64 FCR 410; [1996] FCA 870 - OBG v Allan [2008] 1 AC 1 - Pascoe v Voukidis Holdings Pty Ltd [2024] FCA 915 - Patel v Lal [2011] NSWSC 603 - Porter v Mulcahy & Co Accounting Services Pty Ltd [2021] VSC 572 - Re Alora Davies Developments 104 Pty Ltd (in liq) & Ors v Raphael & Anor [2024] NSWSC 547 - Re Colorado Products Pty Ltd (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 - Re Sirrah Pty Ltd (In Prov Liq) (2021) 152 ACSR 212; [2021] NSWSC 413 - Ridge Estate Pty Ltd v Fairfield Pastoral Holdings Pty Ltd (2024) 302 FCR 375; [2024] FCAFC 17 - Sangha v Baxter [2009] NSWCA 78 - Spencer v Commonwealth of Australia (1907) 5 CLR 418; [1907] HCA 82 - Talacko v Talacko (2021) 272 CLR 478; [2021] HCA 15 - Troulis v Vamvoukakis [1998] NSWCA 237 - Vanguard Financial Planners Pty Ltd v Ale (2018) 354 ALR 711; [2018] NSWSC 314 - Varma v Varma [2010] NSWSC 786 - Watson v Foxman (1995) 49 NSWLR 315 - Wingecarribee Shire Council v Lehman Bros Australia Ltd (in liq) (2012) 301 ALR 1; [2012] FCA 1028 - Zreika v Royal (2019) 271 FCR 65; [2019] FCAFC 82 Texts Cited: - W Bratton, "Fair Value as Process: A Retrospective Reconsideration of Delaware Appraisal" (2023) Del J Corp L 497 - A Damoradan, "Valuing Young, Start-up and Growth Companies: Estimation Issues and Valuation Challenges" (June 12, 2009; SSRN: https://ssrn.com/abstract=1418687) - E Dubiansky, "An Analysis for the Valuation of Venture Capital-Funded Startup Firm Patents" (2006) 12 BU J Sci and Tech L 170 - P D Finn, "The Fiduciary Principle" in T G Youdan (ed) Equity, Fiduciaries and Trusts (1989) - BK Krumm, "Fostering Innovation and Entrepreneurship: Shark Tank shouldn't be a Model (2017) 70 Ark L Rev 553 - A Lynch, "Believing in Unicorns: How to Value Unicorn Companies and Intellectual Property while Encouraging Continuing Innovations and Public Disclosure" (2021) 72 Case Wes L Rev 421 - AF Tuch, "Fairness Opinions and SPAC Reform" (2023) 100 Wash UL Rev 1793 - E Mantell & E Shea, "Development and Application of Business Valuation Methods by the Delaware Courts" (2021) 17 Hastings Business LJ 335 - C Sappideen & Ors, Fleming's The Law of Torts, 11th ed, Lawbook Co 2024 Category: Principal judgment Parties: Luke Bunbury (First Plaintiff) St. Jean CF Pty Ltd (Second Plaintiff) 1derful Pty Ltd (receiver appointed) (Third Plaintiff) The 1derful Group Pty Ltd (receiver appointed) (Fourth Plaintiff) Fletch Capital Pty Ltd (First Defendant) Craig Seymour (Second Defendant) Michael Birch (Third Defendant) Mitchell Warren Ball (Fourth Defendant) Representation: Counsel: B DeBuse (Plaintiff) E A Walker/A H Schatz (First and Second Defendants) A P Cheshire SC (Third Defendant)