Idoport Pty Ltd & Anor v National Australia Bank Ltd & 8 Ors; Idoport Pty Ltd & Market Holdings Pty Ltd v Donald Robert Argus; Idoport Pty Ltd "JMG" v National Australia Bank Ltd [20] [2001] NSWSC 328

New South Wales Supreme Court

CITATION : Idoport Pty Ltd & Anor v National Australia Bank Ltd & 8 Ors; Idoport Pty Ltd & Market Holdings Pty Ltd v Donald Robert Argus; Idoport Pty Ltd "JMG" v National Australia Bank Ltd [20] [2001] NSWSC 328 FILE NUMBER(S) : SC 50113/98; 50026/99; 3991/00 HEARING DATE(S) : 11/04/01, 12/04/01 JUDGMENT DATE : 2 May 2001

Idoport Pty Ltd (Plaintiff) PARTIES : Market Holdings Pty Ltd (Plaintiff) National Australia Bank Ltd (Defendant) Donald Robert Argus (Defendant) JUDGMENT OF : Einstein J

COUNSEL : JJ Garnsey QC (Plaintiffs) TF Bathurst QC, HK Insall (Defendants) SOLICITORS : Withnell Hetherington (Plaintiffs) Freehills (Defendants) CATCHWORDS : Practice and Procedure - Application for leave to amend - Interference with contractual relations - Torts - Procuring beach of contract - elements of tort - alleged tortfeasor must know of the contract and sufficient of its terms to know that what the defendant induced or procured the party to the contract to do would be in breach of the contract - Director, officer or employee of corporate contracting party - directors are not liable for the tort where, in exercising their functions as directors and in acting within authority, they have caused the company to breach its contract - meaning of 'acting within authority' - 'acting bona fide within the scope of authority'. LEGISLATION CITED : Fair Trading Act 1987 Trade Practices Act 1974 Armagas Ltd v Mundogas S.A (1986) AC 717 Baden Delvaux v Societe Generale [1992] 4 All ER 161 Barnes v Addy (1874) 43 LJch 513 Beach Petroleum NL v Kennedy (1999) 48 NSWLR 1 Centrepac Partnership and others v Foreign Currency Consultants Ltd (1989) 4 NZCLC 64,940 Clough v Rogers (1974) 48 ALJR 481 Consul Development Pty Ltd v DPC States Pty Ltd (1975) 132 CLR 373 Cook Strait Skyferry Ltd v Dennis Thomson International Ltd [1993] 2 NZLR 72 Cropper v Smith (188 4) 2 6 CH D 700 D.C Thomson and Company Limited [1952] Ch 680-681) Dey v Commissioner for Railways (New South Wales) (1949) 78 CLR 62 Ferguson v Wilson (1866) 2 Ch.App 77 Fightvision Pty Ltd v Onisforou and others (1999) 47 NSWLR 473 Freeman & Lockyer v Buckhurst Properties (Mangal) Ltd Greig v Insole [1978] 1 WLR 302 Idoport Pty Ltd v NAB [2000] NSWSC 1141 CASES CITED : King v Milpurrurru (1996) 66 FCR 474 General Steel Industries Inc v Commissioner for Railways (New South Wales) 1964 112, CLR 125 Imperial Oil Ltd v C & G Ltd 1989 62 DLR. (4th) 261 Lagunas Nitrate Co.v Lagunas Syndicate (1899) 2 Ch 392 Microsoft Corporate v Auschina Polaris Pty Ltd 1996 36 IPR 225 Northside Developments Pty Ltd v Registrar General (1989) 170 CLR 146 O'Brien v Dawson (1941) 41 SR 295; (1942) 66 CLR 18 Pratt v British Medical Association [1919] 1 KB 244 Ridgeway Maritime Inc v Beulah Wings Ltd [The "Leon"] 1991 2 Lloyds Law Rep 611 Root Quality Pty Ltd v Root Control Technologies Pty Ltd [2000] FCA 980 Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 Rutherford v Poole [1953] VLR 130 Said v Butt (1920) 3 KB 497 Short v City Bank of Sydney (1912) 15 CLR 148 State of Queensland v J L Holdings Pty Ltd (1996) 189 CLR 146 Tsaprazis v Goldcrest Properties 2000 18 ACLC 285 United States Surgical Corporation v Hospital Products International Pty Ltd [1983] 2 NSWLR 157 DECISION : Leave to plead the tort of inducing breach of contract as against Messrs. Barnes, Cicutto, Krasnostein and Argus to be refused and the paragraphs of the statement of claim presently on the record pleading those causes of action against those defendants to be struck out upon the bringing in of short minutes of order; Further submissions invited in relation to whether leave to plead the tort of inducing breach of contract should be permitted as against Messrs. Courtney and McKimm; Sundry other aspects of the second tranche amendments dealt with including leave granted to the plaintiffs to amend the statement of claim to plead that in about September to November 1998, 1999 and 2000 respectively the Boards of NMG and of Ausmaq Systems in breach of terms of the Consulting Agreement decided not to adopt and disapproved the 1999, 2000 and 2001 JMG Business Plans