Pearsall v National Australia Bank Ltd [2024] NSWSC 1493

Supreme Court New South Wales

Medium Neutral Citation: Pearsall v National Australia Bank Ltd [2024] NSWSC 1493 Hearing dates: 15 November 2024 Decision date: 26 November 2024 Jurisdiction: Equity - Commercial List Before: Ball J Decision: (1) Stand the further amended notice of motion over to 5 December 2024, with the intention that it be dismissed if the first and second plaintiffs agree to indemnify the third to sixth plaintiffs in respect of their costs of the proceedings on terms that are acceptable to the defendants or to the Court; (2) Reserve the question of costs. Catchwords: CIVIL PROCEDURE — Stay of proceedings — Where defendants seek stay of proceedings against several plaintiffs that are corporate entities with receivers appointed — Stay not granted CORPORATIONS — Statutory derivative action — Whether plaintiffs entitled to advance claims on behalf of corporate entities — Sections 236 and 237 Corporations Act 2001 (Cth) — Where s 236 cannot apply because plaintiffs did not seek leave of the Court CORPORATIONS — Practice and procedure — Whether natural person plaintiffs entitled to advance claims on behalf of other corporate entity plaintiffs — Application of Deangrove Pty Ltd (Receivers and Managers Appointed) and Another v Commonwealth Bank of Australia (2001) 108 FCR 77 — Natural person plaintiffs entitled to advance claims on behalf of corporate entity plaintiffs — Whether natural person plaintiffs need to provide security for indemnities they are required to give — No security required Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Corporations Act 2001 (Cth) Cases Cited: Deangrove Pty Ltd (Receivers and Managers Appointed) and Another v Commonwealth Bank of Australia (2001) 108 FCR 77; [2001] FCA 173 Category: Procedural rulings Parties: Paul Edwin Pearsall (First Plaintiff) Rachelle Melissa Pearsall (Second Plaintiff) Pearsall Ag Pty Ltd (Receivers and Managers Appointed) (Third Plaintiff) Billabar Investments Pty Ltd (Receivers and Managers Appointed) (Fourth Plaintiff) Karm Enterprises Pty Ltd (Receivers and Managers Appointed) (Fifth Plaintiff) Murami Farming Co Pty Ltd (Receivers and Managers Appointed) (Sixth Plaintiff) National Australia Bank (First Defendant) Joseph Ronald Hansell and Ross Andrew Blakeley (Second Defendant) Representation: Counsel: D Guidolin KC with APF Ryan (Plaintiffs) A Munro SC with J Buncle (First and Second Defendants)