Linton v Telnet Pty Ltd [1999] NSWCA 33

Reported Decision : 30 ACSR 465

New South Wales Court of Appeal CITATION : Linton v Telnet Pty Ltd [1999] NSWCA 33 FILE NUMBER(S) : CA 40502 of 1998 HEARING DATE(S) : 15 & 16 February 1999 JUDGMENT DATE : 24 March 1999

PARTIES : Annette Elizabeth Linton Telnet Pty Ltd JUDGMENT OF : Beazley JA at 1; Giles JA at 2; Sheppard AJA at 44

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT FILE NUMBER(S) : ED 3332 of 1995 LOWER COURT JUDICIAL OFFICER : Hulme J

COUNSEL : Appellant - B W Walker SC & S P Gullotta Respondent - I V Gzell QC & F G Lever SOLICITORS : Appellant - Michell Sillar, Sydney Respondent - Barry Lazarus, Sydney CATCHWORDS : BREACH OF FIDUCIARY DUTY - regard by directors to interests of group not particular company - whether Charterbridge test to be applied.(1); BREACH OF FIDUCIARY DUTY - regard by directors to interests of creditors - when required.(2); WHETHER DISREGARD OF INTERESTS OF CREDITORS PART OF CASE AT TRIAL - was not - leave to file notice of contention involving that case refused.(3); PARTICIPATION IN BREACH OF FIDUCIARY DUTY - knowing receipt case - whether knowledge or notice - on any version of the requisite knowledge or notice, no.(4) (1) Charterbridge Corporation Limited v Lloyds Bank Limited (1970) 1 Ch 62 Reid Murray Holdings Limited (In Liquidation) v David Murray Holdings Pty Limited (1972) 5 SASR 386 Australian National Industries v Greater Pacific Investments Pty Limited (In Liquidation) (No 3) (1992) 7 ACSR 176 Northside Developments Pty Limited v Registrar General (1990) 170 CLR 146 Equiticorp Finance Limited v Bank of New Zealand (1993) 32 NSWLR 50 referred to. (2) Walker v Wimborne (1976) 137 CLR 1 Kinsela v Russell Kinsela Pty Limited (1986) 4 NSWLR 722 Nicholson v Permakraft (NZ) Limited (1985) 3 ACLC 453 referred to. CASES CITED: (3) Suttor v Gundowda Pty Ltd (1950) 81 CLR 418 Coulton v Holcombe (1986) 162 CLR 1 Multicon Engineering Pty Ltd v Federal Airports ion NSWCA 15 October 1987 unreported applied. (4 ) Barnes v Addy (1874) 9 Ch App 244 Ninety Five Pty Ltd v Banque Nationale de Paris (1988) WAR 132 Agip (Africa) Ltd v Jackson (1990) Ch 265 Royal Brunei Airlines Sdn Bhd v Ming (1995) 2 AC 378 Equiticorp Industries Group Ltd v The Crown (1996) 3 NZLR 586 Koorootang Nominees Pty Ltd v Meldrum Jeffriess Group Pty Ltd (1998) 3 VR 16 Baden Delvaux and Lecuit v Société General pour Favoriser le Dèveloppement du Commerce et de l'Industrie en France SA(1983) BCLC 325 (1992) 4 All ER 161 referred to. DECISION : Appeal allowed and cross-appeal dismissed; Declaration and orders 2, 3, 5 & 7 made by Hulme J on 24 June 1998 set aside, and in lieu thereof order that the summons be dismissed and the plaintiff pay the defendant's costs of the proceedings before Hulme J; Order that the respondent pay the appellant's costs of the appeal and the cross-appeal; Appellant to have a certificate under the Suitors Fund Act if qualified; liberty to apply within 14 days.