Watson & Ors v James & Ors [1999] NSWSC 600

New South Wales Supreme Court CITATION : Watson & Ors v James & Ors [1999] NSWSC 600 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 3933/98 HEARING DATE(S) : 15/03/99 and 16/03/99 JUDGMENT DATE : 30 March 1999

John Watson (1st Plaintiff/ 1st Cross-defendant) Bernard John Kelly (2nd Plaintiff/ 2nd Cross-defendant) Nostaw Nominees Pty Ltd (ACN 064 435 258) (3rd Plaintiff/ 3rd Cross-defendant) Combined Associated Promotions Pty Ltd (ACN 003 221 869) (4th Plaintiff/ 4th Cross-defendant)

PARTIES : Brenton Ronald James (1st Defendant/ 1st Cross-claimant) Dominion Funds Management Ltd (ACN 079 802 332) (2nd Defendant) Sagacity Partners Ltd (BVI) (3rd Defendant/ 2nd Cross-claimant) Andrew Peter de Vries (4th Defendant) Kenneth David James (5th Defendant) Dominion Corporate Finance Pty Ltd (ACN 077 962 308) (6th Defendant) JUDGMENT OF : Bergin J

Mr R. White SC and Mr T. Parker (Plaintiffs) COUNSEL : Mr S. Bell (1st, 3rd, 4th, 5th, 6th Defendants) No Appearance (2nd Defendant) SOLICITORS : Norton Smith & Co (Plaintiff) Ian B. Mitchell (Defendant) CATCHWORDS : Application to strike out part of defence and cross-claim: unclean hands; abuse of process: Availability of s 246AA of the Corporations Law to majority shareholders. Corporations Law - s243ZE (2), (5), s246AA, s230, s1317HD, s243N(1) ACTS CITED : Companies Act 1948 (UK) s210 - Part 2F.1 Business Corporations Act 1982 S.O. c.4 - s247 British Columbia Company Act RS BC 1979 c.59 FAI Insurance Ltd v Pioneer Concrete Services (1987) 15 NSWLR 552 Dering v Earl of Winchelsea (1787) 1 Cox Eq. Cas. 318 Meyers v Casey (1913) 17 CLR 90 Williams v Spautz (1991-92) 174 CLR 509 Varawa v Howard Smith Co Ltd (1911) 13 CLR 35 Re Polyresins Pty Ltd (1998) 16 ACLC 1674 Thomas v HW Thomas Ltd (1984) 2 ACLC 610 Re Associated Tool Industries Ltd (1963) 5 FLR 55 Benjamin v Elysium Investments (Pty) Ltd & Anor 1960 (3) SA 467 Re HR Harmer Ltd (1958) 3 All ER 689 CASES CITED : Wayde v New South Wales Rugby League Ltd (1980) CLR 459 Jabaco Inc v Real Corporate Group Ltd (Jan 20 1989 Ont HCJ) O.J. No 68 Cairney v Golden Key Holdings Ltd (1987) 40 BLR 263 Gillespie v Overs (Aug. 14 1987 Ont. H.C.J.) (1987 O.J. No 747) Yok Wing Hui v Yamato Steakhouse Inc. (Jan 6 1988 Ont. H.C.J.) (1988 O.J. No 9) Lake Muskoka Investments (Northern and Eastern Ltd) v Lake Muskoka Marine Ltd and Neal Newman (March 31 1989 Ont H.C.J) International Hospitality Concepts Inc (No 2) (1994) 13 ACSR 368 Vujnovich & Anor v Vujnovich (1990) BCLC 227 Marks v Roe (unreported Supreme Court of Vic. - Mandie J 28.5.1996) Re Unisoft Group Ltd (1994) 1 BCLC 609 Article Cited - Rice M., (1989) "The Availability of Oppression Remedy to Majority Shareholders in Ontario", 16 Can Bus LJ 58 DECISION : Part of Defence and Cross-claim struck out. Majority shareholders not precluded from making application under s.246AA of the Corporations Law.