Brunninghausen v Glavanics [1999] NSWCA 199

46 NSWLR 538 Reported Decision : 32 ACSR 294 (1999) 17 ACLC 1247

New South Wales Court of Appeal CITATION : Brunninghausen v Glavanics [1999] NSWCA 199 FILE NUMBER(S) : CA 40111/96; 40049/97 HEARING DATE(S) : 8 September 1998 9 September 1998 JUDGMENT DATE : 23 June 1999

Max Bernard Jules Brunninghausen & Anor PARTIES : v Michael Glavanics JUDGMENT OF : Priestley JA at 1; Handley JA at 3; Stein JA at 124

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT FILE NUMBER(S) : EQ 1868/91 LOWER COURT JUDICIAL OFFICER : Bryson J

COUNSEL : P J Brereton/D Ash (Appellant) B A Coles QC/P J Hayes (Respondent) SOLICITORS : Stephen J Wawn & Associates (Appellant) Hughes & Co (Respondent) CATCHWORDS : CORPORATIONS LAW - Directors' duties - whether sole effective director owed fiduciary duty to another shareholder - application of rule in Percival v Wright; EQUITY - fiduciary duty - whether director owed fiduciary duty to shareholder in purchase of shares ACTS CITED : Fair Trading Act 1987 Masters v Cameron (1954) 91 CLR 353, 360-4 Baulkham Hills Private Hospital Pty Ltd v G R Securities Pty Ltd (1986) 40 NSWLR 622, 628 Salomon v Salomon & Co [1897] AC 22 Foss v Harbottle (1843) 2 Hare 461 Prudential Assurance Co Ltd v Newnham Industries Ltd [No 2] [1982] Ch 204 CA, 223-4 Gould v Vaggelas (1985) 157 CLR 215, 220, 245, 253 Percival v Wright [1902] 2 Ch 421 Allen v Hyatt (1914) 30 TLR 444 Winthrop Investments Ltd v Winns Ltd [1975] 2 NSWLR 666, 680 Goodwin v Agassiz (1933) 186 NE 659, 661 Allen v Hyatt (1914) 32 TLR 444 Nocton v Ashburton [1914] AC 932, 955-6 Galloway v Halle Concerts Society (1915) 2 Ch 233 Ngurli Ltd v McCann (1953) 90 CLR 425 Mills v Mills (1938) 60 CLR 150, 185 Howard Smith Ltd v Ampol Ltd [1974] AC 821 Whitehouse v Carlton Hotel Pty Ltd (1987) 162 CLR 285, 289-90 Richard Brady Franks Ltd v Price (1937) 58 CLR 112, 143 Provident International Corporation v International Leasing Corporation Ltd (1969) 89 WN (PT 1) (NSW) 370, 377 Stein v Blake [1998] 1 All ER 724 CA, 727 CASES CITED: Gething v Kilner [1972] 1 WLR 337 Bulfin v Bebarfalds Ltd (1938) 38 SR (NSW) 423 Peel v London & NW Railway Co [1907] 1 Ch 5 CA Tiessen v Henderson [1899] 1 Ch 861 Peters' American Delicacy Co Ltd v Heath (1939) 61 CLR 457, 486 Re El Sombrero Ltd [1958] Ch 900 Hooker Investments Pty Ltd v Bearing Bros Halkerstone and Partners Securities Ltd (1986) 10 ACLR 462, 463 Cook v Deeks [1916] 1 AC 554 Regal (Hastings) Ltd v Gulliver [1967] 2 AC 134 Hospital Products v United States Surgical Corporation (1984) 156 CLR 41, 69 Glandon Pty Ltd v Strata Consolidated Pty Ltd (1993) 11 ACSR 543 CA, 547, 557 Coleman v Myers [1977] 2 NZLR 225, 276-80 Erlanger v New Sombrero Phosphate Co (1878) 3 App Cas 1218 Re Westbourne Galleries Ltd [1973] AC 360 Chan v Zacharia (1984) 154 CLR 178, 198-9 Re Forest of Dean Coal Mining Company (1878) 10 ChD 450, 452 Strong v Repide (1909) 213 US 419 Bailey v Vaughan 359 SE 2nd 599 (1987) Van Schaack Holdings Ltd v Van Schaack 867 P 2nd 892 (1994) Briess v Wooley [1954] AC 333 Jones v Dumbrell [1981] VR 199 DECISION : Orders made