McKensey v Hewitt [1999] NSWCA 426

New South Wales Court of Appeal CITATION : McKensey v Hewitt [1999] NSWCA 426 FILE NUMBER(S) : CA 40845/97 HEARING DATE(S) : Thursday 26 August 1999 JUDGMENT DATE : 3 December 1999

Appellant: Hugh Stanley McKensey 2nd Appallant: Victor John Lewis PARTIES : 3rd Apellant: Peter Charles Hicks Respondent: Christopher Michael Hewitt 2nd Respondent:Phillip Anthony Nelson JUDGMENT OF : Meagher JA at 1; Giles JA at 14; Fitzgerald JA at 46

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT FILE NUMBER(S) : 1585/95 LOWER COURT JUDICIAL OFFICER : Einstein J

COUNSEL : Appellant- Mr W H Nicholas QC & Mr T A Alexis Respondent- Mr M Ashurst SOLICITORS : Appellant- Harris Wheeler (Newcastle) Respondent- Hansens (Newcastle) CATCHWORDS : Partnerships; Duty of good faith and disclosure; Breach of fiduciary duty; Breach of duty not made out Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd (1968) 118 CLR 429 CASES CITED: Port Jackson Stevedoring Pty Ltd v Salmond and Spraggon (Aust) Pty Ltd(1978) 139 CLR231 Hide & Skin Trading Pty Ltd v Oceanic Meat Traders Ltd (1990) 20 NSWLR 310 Codelfa Construction Pty Ltd v Stae Rail Authority of New South Wales (1982)149 CLR337 at 352 DECISION : 1.Appeal allowed in part; 2.Set aside the declarations and orders in paras 5,6,7,8,9,10,11,and12 of the declarations and orders made by Einstein J on 11 November 1997.; 3.Set aside in para 15(b) of the declaration and orders made by Einstein J on November 1997 and in lieu thereof order that the cross-claiments pay the cross- defendants costs of the second cross-claim.; 4.Make no order as to the costs of the appeal.