WINNIFRED WAI YUE YU v ALLAN NI KWAN KWOK & ORS. [1999] NSWSC 992

New South Wales Supreme Court CITATION : WINNIFRED WAI YUE YU v ALLAN NI KWAN KWOK & ORS. [1999] NSWSC 992 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 2068/96 HEARING DATE(S) : 3, 4 and 5 June, 24, 25, 26 and 27 August 1998. Final original written submissions received 14 September 1998; final supplementary submissions received by request on 27 August 1999. JUDGMENT DATE : 2 September 1999

PARTIES : WINNIFRED WAI YUE YU v ALLAN NI KWAN KWOK & ORS. JUDGMENT OF : Simos J

COUNSEL : JA Halley (Plaintiffs) RW White, SC (Defendant) SOLICITORS : Clayton Utz (Plaintiffs) Mallesons Stephen Jaques (Defendant) CATCHWORDS : CONVERSION - Deposit of cheques drawn in favour of plaintiff into trust account of plaintiff's accountants contrary to plaintiff's instructions - Accountants guilty of conversion of cheques but no damages caused by conversion.; EQUITY - FIDUCIARY DUTY - Deposit of cheques drawn in favour of plaintiff into trust account of plaintiff's accountants contrary to plaintiff's instructions - Accountants guilty of breach of fiduciary duty owed to plaintiff but no damages caused by breach.; NEGLIGENCE - DUTY OF CARE - In particular circumstances, accountants owed positive duty in tort to plaintiff to advise (inform) plaintiff of nature of proposed interest bearing investment to be made on plaintiff's behalf including investment risk involved - Breach of duty by accountants causing loss to plaintiff - Accountants liable in damages for loss.; CONTRIBUTORY NEGLIGENCE - In particular circumstances plaintiff contributed to loss as to 15%.; EQUITY - NON-FIDUCIARY EQUITABLE DUTY - In particular circumstances, accountants subject to non-fiduciary equitable duty substantially co-extensive with accountants' duty in tort - Accountants liable to compensate plaintiff for loss.; EQUITY - TRUSTEES - TRUSTEE ACT 1925 - AUTHORISED INVESTMENTS - In particular circumstances, accountants although also trustees, not limited in making interest-bearing investments on behalf of plaintiff to investments authorised by or under the Trustee Act 1925.; EQUITY - TRUSTEES - TRUSTEE ACT 1925 (SECTION 85) - CLAIM FOR RELIEF AGAINT PERSONAL LIABILITY - If accountants otherwise eligible to claim relief against personal liability for breach of trust, in particular circumstances accountants not entitled to relief because although acted honestly did not act reasonably.; TORT - MEASURE OF DAMAGES - Plaintiff entitled to be compensated in amount necessary to put plaintiff in position plaintiff would have been in if wrongful act had not occurred. ACTS CITED : Trustee Act 1925 Belsand Pty Ltd v Bridgewater Securities Ltd (1995) Aust Torts 81-353 Butler v Egg and Egg Pulp Marketing Board (1966) 114 CLR 185 Bristol and West Building Society v Mothew [1998] Ch 1 at 16-18 Bryan v Maloney (1995) 182 CLR 609 Chan v Zachariah (1984) 54 CLR 178 Cook v Cook (1986) 162 CLR 376 Esanda Finance Corporation Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241 Gala v Preston (1991) 172 CLR 243 Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1 Haines v Bendal (1991) 172 CLR 60 Hawkins v Clayton (1988) 157 CLR 424 Hill v Van Erp (1997) 188 CLR 159 CASES CITED : Hunter BNZ Finance v CG Maloney Pty. Ltd. (1988) 18 NSWLR 420 Jaensch v Coffey (1984) 155 CLR 549 Maguire v Makaronis (1996-1997) 188 CLR 449 Penfolds Wines Pty Ltd v Elliott (1946) 74 CLR 204 Perre v Apand Pty Ltd (1999) HCA 36 Pyrenees Shire Council v Day (1998) 192 CLR 330 Romeo v Conservation Commission of the Northern Territory (1998) 192 CLR 431 San Sebastian Pty Ltd v The Minister (1986) 162 CLR 340 Sutherland Shire Council v Heyman (1985) 157 CLR 424 Turner v Belsand Pty Ltd (unreported, Fed Ct (Full Ct), 10 July 1997) Bowstead and Reynolds on Agency, (16 ed - 1996) Meagher, Gummow and Lehane: Equity: Doctrines and Remedies, (3 ed - 1992) Weaver & Craigie: The Law Relating to Banker and Customer in Australia (2 ed - 1990) DECISION : Plaintiff entitled to damages and interest for breach of duty of care by Defendants