FIDUCIARY v MORNINGSTAR [2001] NSWSC 1087

New South Wales Supreme Court

CITATION : FIDUCIARY v MORNINGSTAR [2001] NSWSC 1087 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 5308/01 HEARING DATE(S) : 23/11/01 JUDGMENT DATE : 23 November 2001

Fiduciary Limited - First Plaintiff Graham John Rich - Second Plaintiff Morningstar Research Pty Ltd - First Defendant PARTIES : Morningstar Inc. - Second Defendant Joe Mansueto - Third Defendant Tao Huang - Fourth Defendant Donald James Phillips II - Fifth Defendant Bevin Desmond - Sixth Defendant JUDGMENT OF : Barrett J

COUNSEL : Mr R.J. Ellicott QC/Mr M.A. Jones - Plaintiffs Mr N.C. Hutley SC/Mr S.A. Goodman - Defendants SOLICITORS : Nash O'Neill Tomko Lawyers - Plaintiffs Clayton Utz - Defendants CATCHWORDS : CORPORATIONS - application by shareholder for interlocutory injunctions to restrain issue of shares and dismissal of managing director - alleged oppression - circumstances in which breach of directors' duties may be oppressive - duty to see share capital issued in financially responsible and economical way - breach of any contract with managing director sounds in damages - balance of convenience significantly affected by company's insolvency and willingness of defendant shareholder (but not plaintiff shareholder) to provide needed equity - interlocutory injunctions refused LEGISLATION CITED : Corporations Act 2001 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63 Castlemaine Tooheys Ltd v South Australia (1986) 161 CLR 148 EPP National Buying Group Pty Ltd v Levy [2001] NSWSC 482 Foss v Harbottle (1843) 2 Hare 461 (67 ER 189) CASES CITED : French v Chapple [2000] NSWSC 1240 Lowry (Inspector of Taxes) v Consolidated African Selection Trust Ltd [1940] AC 648 Pilmer v Duke Group Ltd (2001) 75 ALJR 1067 Shearer (Inspector of Taxes) v Bercain Ltd [1980] 3 All ER 295 Wayde v NSW Rugby League Ltd (1985) 180 CLR 459 Wentworth v Wentworth (NSWSC, unreported, 12 June 1997) DECISION : Orders refused.