NRMA Limited & 1 Ors v Ian Francis Yates [1999] NSWSC 859

Reported Decision : [2000] 18 ACLC 45 [1999] ATPR 41-721

New South Wales Supreme Court CITATION : NRMA Limited & 1 Ors v Ian Francis Yates [1999] NSWSC 859 revised - 01/09/99 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 3586/99 HEARING DATE(S) : 17/08/99, 20/08/99 JUDGMENT DATE : 20 August 1999

NRMA Limited (ACN 000 010 506) (First Plaintiff) PARTIES : NRMA Insurance Limited (ACN 000 016 722) (Second Plaintiff) Ian Francis Yates (Defendant) JUDGMENT OF : Santow J

COUNSEL : T E F Hughes, QC/S J Gageler (Plaintiffs) A J L Ogborne (Defendant) SOLICITORS : Freehill Hollingdale & Page (Plaintiffs) Bruce & Stewart (Defendant) CATCHWORDS : INJUNCTIONS — Final injunction to restrain director from repeating TV and radio advertisements said to be misleading or deceptive either in breach of s42 of Fair Trading Act 1987 (NSW) or of director's fiduciary duty.; TRADE PRACTICES— Section 42 of Fair Trading Acts — meaning of "in trade or commerce" — Silence as misleading conduct in case of a director.; CORPORATIONS — scope of director's fiduciary duty in advertising campaign for election of a group of directors not to mislead or deceive — Aggregating previous year's unrealised book loss in carrying values to subsequent year's realised loss.; WORDS AND PHRASES — "loss" in a transaction — Capital loss versus capital decline. Corporations Law s232A ACTS CITED : Fair Trading Act 1987 (NSW) s42 Trade Practices Act 1974 (Cth) s52 Concrete Constructions (N.S.W.) Pty Ltd v Nelson (1990) 169 CLR 594 Fasold v Roberts 145 ALR 548 Fraser & Anor v NRMA Holdings Ltd (1994-5) 127 ALR 543 CASES CITED : Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (1988) 79 ALR 83 Kolback Securities Ltd v Epoch Mining NL (1987) 8 NSWLR 533 Meadow Gem Pty Ltd v ANZ Executors & Trustees Co Ltd (1994) ATPR (Digest) 46-130 Orison Pty Ltd v Strategic Minerals Corporation NL (1987) 77 ALR 141 Silktone Pty Limited v Devreal Capital Pty Ltd (1990) 21 NSWLR 317 DECISION : Permanent injunction granted.