Harrison & Anor v Schipp Cameron & Anor v Schipp [2001] NSWCA 13

New South Wales Court of Appeal

CITATION : Harrison & Anor v Schipp Cameron & Anor v Schipp [2001] NSWCA 13 FILE NUMBER(S) : CA 40728/98; 40761/98 HEARING DATE(S) : 15, 16, 17 May 2000 JUDGMENT DATE : 20 February 2001

G Harrison & Emibarb Pty Ltd - Appellants/Cross-Respondents in 40728/98 PARTIES : D R Cameron & Don Cameron Real Estate Pty Ltd - Appellants in 40761/98 D J Schipp - Respondent in both matters and Cross-Appellant in 40728/98 Aegon Insurance Company (UK) Ltd & Ors - Third Cross-Respondent in 40728/98 JUDGMENT OF : Handley JA at 1; Giles JA at 2; Fitzgerald JA at 153

LOWER COURT JURISDICTION : Supreme Court - Equity Division LOWER COURT ED 6425/91 FILE NUMBER(S) : LOWER COURT Einstein J JUDICIAL OFFICER :

R B S Macfarlan QC & J P A Durack - Harrison & Emibarb Pty Ltd COUNSEL : I G Roberts - Cameron & Don Cameron Real Estate Pty Ltd N C Hutley SC & P J Brereton - Aegon Insurance Company (UK) Ltd & Ors M J Slattery QC, J M Hennessey & P J Gormly - D J Schipp Blake Dawson Waldron - Harrison & Emibarb Pty Ltd SOLICITORS : D Cameron in person Minter Ellison -Aegon Insurance Company (UK) Limited & Ors Barker Gosling - D J Schipp CATCHWORDS : JOINT VENTURES - breach of fiduciary duty - obtaining advantage without knowledge and informed consent of joint venture partner - taking advantage of vulnerability of joint venture partner and of dominion and influence gained over her - liable for loss thereby suffered by joint venture partner. FIDUCIARY RELATIONSHIP - whether trust and confidence necessary - not essential. AFFIRMATION OF TRANSACTION BROUGHT ABOUT BY UNCONSCIONABLE CONDUCT - must know facts on which rights depend and what the rights are. EQUITABLE COMPENSATION - loss on resale of joint venture property - whether too remote to be loss for which liable - equitable compensation not so limited. EQUITABLE COMPENSATION - whether each delinquent joint venturer liable only for amount received - whether interest only on amount received - both liable for whole loss and interest on whole amount. COSTS - indemnity costs - whether "relevant delinquency" - whether taking advantage of joint venture partner and unconscionability warrant indemnity costs - leads to compensatory or other relief and costs on normal basis - more necessary for indemnity costs. COSTS - Bullock order - whether warranted on facts - not warranted. EQUITABLE COMPENSATION - whether could be allowance in favour of delinquent joint venturers - not necessary to decide - amount not assessable and order for inquiry not warranted. JOINT VENTURES - United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 FIDUCIARY RELATIONSHIP - Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 Breen v Williams (1996) 186 CLR 71 Johnson v Buttress (1936) 56 CLR 113 AFFIRMATION OF TRANSACTION BROUGHT ABOUT BY UNCONSCIONABLE CONDUCT - Allcard v Skinner (1887) 26 ChD 145 re Howlett (1949) Ch 767 EQUITABLE COMPENSATION - Morgan Corporate Pty Ltd v GWG Leviny Pty Ltd (1995) ATPR 41-414 Kizbeau Pty Ltd v WG & B Pty Ltd (1995) 184 CLR 281 Kenny v Good Pty Ltd v MGICA (1992) Ltd (1999) 199 CLR 413 re Dawson; Union Fidelity Trust Co Ltd v Perpetual Trustee Co Ltd (1966) 2 NSWLR 211 O'Halleran v R T Thomas & Family Pty Ltd (1998) 45 NSWLR 262 Beach Petroleum NL v Abbott Tout Russell Kennedy (1999) 33 ACSR 1 Duke Group Ltd (in liq) v Pilmer (1999) 31 ACSR 213 EQUITABLE COMPENSATION - Barnes v Addy (1874) 9 Ch App 244 CASES CITED: Catt v Marac Australia Ltd (1986) 9 NSWLR 639 Gluckstein v Barnes (1900) AC 240 Burdick v Garrick (1870) 5 Ch App 233 Wallersteiner v Moir (No 2) (1975) QB 373 Hungerfords v Walker (1900) 171 CLR 125 re Dawson; Union Fidelity Trustee Co Ltd v Perpetual Trustee Co (1966) 2 NSWLR 211 Holmes v Walton (1961) WAR 96 COSTS - indemnity costs - Degmam Pty Ltd (in liquidation) v Wright (No 2) (1983) 2 NSWLR 354 re Smith, ex parte Rundle (No 2) (1991) 6 WAR 299 Oshlack v Richmond River Council (1998) 193 CLR 72 Warman International Ltd v Dwyer (1995) 182 CLR 544 Hagan v Waterhouse (No 2) (1992) 34 NSWLR 400 Fountain Selected Meats (Sales) Pty Ltd v International Produce Merchants Pty Ltd (1988) 81 ALR 397 Baillieu Knight Frank (NSW) Pty Ltd v Ted Manny Real Estae Pty Ltd (1992) 30 NSWLR 359 Colgate-Palmolive Pty Ltd v Cussons (1993) 46 FCR 225 COSTS - Bullock order - Bullock v London & General Omnibus Co (1907) 1 KB 264 EQUITABLE COMPENSATION - Warman International Ltd v Dwyer (1995) 182 CLR 544 Boardman v Phipps (1967) 2 AC 46 United States Surgical Corporation v Hospital Products Ltd (1983) 2 NSWLR 157 DECISION : (1) Appeals allowed in part. (2) Set aside the order that the first, second, third and fourth defendants pay the plaintiff's costs on an indemnity basis and order in lieu thereof that they pay the plaintiff's costs. (3) Appeals otherwise dismissed. (4) Cross-appeal dismissed as against the first and second cross-respondents. (5) Appellants pay 90 per cent of the respondent's costs of the appeals and cross-appellants pay the first and second cross-respondents' costs of the cross-appeal. (6) Reserve costs of the cross-appeal as between the cross-appellant and the third cross-respondents. (7) List the cross-appeal for mention on 12 March 2001.