Commonwealth Development Bank v Windermere Pastoral [1999] NSWSC 518

New South Wales Supreme Court CITATION : Commonwealth Development Bank v Windermere Pastoral [1999] NSWSC 518 revised - 31/08/99 CURRENT JURISDICTION : Common Law Division FILE NUMBER(S) : 12913/98 HEARING DATE(S) : 28 May 1999 JUDGMENT DATE : 3 June 1999

PARTIES : Commonwealth Development Bank of Australia Limited - Plaintiff/Cross-Defendant Windermere Pastoral Co Pty Limited - Defendant/Cross-Claimant JUDGMENT OF : Rolfe J

COUNSEL : Mr A.G. Bell - Plaintiff Mr I.E. Davidson - Defendant SOLICITORS : L.E. Taylor - Plaintiff Johnson & Sendall - Defendant CATCHWORDS : Application to strike out defence and cross-claim; Air Services Australia v Zarb (Court of Appeal - 26 August 1998 - unreported); Dey v Victorian Railway Commissioners (1948-1949) 78 CLR 62 at p.91; General Steel Industries Inc v Commissioner for Railways (NSW) & Ors (1964) 112 CLR 125; Webster & Anor v Lampard (1993) 177 CLR 598; Wickstead & Ors v Browne (1992) 30 NSWLR 1; Esanda Finance Corporation Limited v Peat Marwick Hungerfords (1997) 188 CLR 241 and NRMA Insurance Limited v A.W. Edwards Pty Limited (Court of Appeal - 11 November 1994 - unreported) followed.; Fiduciary Duty; Beach Petroleum NL v Abbott Tout Russell Kennedy (1997) 26 ACSR 114; Commonwealth Bank of Australia & Anor v Smith (1991) 102 ALR 453; Maguire & Anor v Makaronis & Anor (1997) 188 CLR 449 and O'Halloran v R.T. Thomas & Family Pty Limited (1998) 45 NSWLR 262 noted.; Right of Guarantor to rely on defence available to principal debtor; Cellulose Products Pty Limited v Truda & Ors (1970) 92 WN 561; Langford Concrete Pty Limited v Finlay [1978] 1 NSWLR 14; Covino & Anor v Bandag Manufacturing Pty Limited [1983] 1 NSWLR 237; Indrisie v General Credits Limited [1985] VR 251 Re Kleiss & Anor ex parte Kleiss & Anor v Capt'n Snooze Pty Limited (1996) 61 FCR 436; Australia and New Zealand Banking Group Limited v Harvey [1994] ATPR 53640 considered.; Equitable Set-Off: depends on facts of each case; AWA Limited v Exicom Australia Pty Limited (1990) 19 NSWLR 705; Murphy & Anor v Zamonex Pty Limited & Ors (1993) 31 NSWLR 439; Direct Acceptance Corporation Limited (In Liquidation) v Lord (1993) 31 NSWLR 439 and, on appeal, (1993) 32 NSWLR 362; Coles Myer Limited v Liverpool Growers (Australasia) Pty Limited (Rolfe J -24 September 1993 - unreported); Wespac Banking Corporation v Nalty (Rolfe J - 8 October 1993 - unreported); Algons Engineering Pty Limited v Abigroup Contractors Pty Limited (Rolfe J - 1 August 1997 - unreported); Tooth & Co Limited v Rosier (Wood J - 7 June 1985 - unreported) and Tooth & Company Limited v Smith (Clarke J - 5 September 1984 - unreported) followed. DECISION : Application dismissed with costs.