Nick Kritharas Holdings Pty Ltd (In Liq) v Gatsios Holdings Pty Ltd [2001] NSWSC 343

Reported Decision : (2001) 38 ACSR 57

New South Wales Supreme Court

CITATION : Nick Kritharas Holdings Pty Ltd (In Liq) v Gatsios Holdings Pty Ltd [2001] NSWSC 343 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 3132/00 HEARING DATE(S) : 28 August, 2 & 10 November and 1 December 2000 JUDGMENT DATE : 3 May 2001

PARTIES : Nick Kritharas Holdings Pty Ltd (In Liq) (P) Gatsios Holdings Pty Ltd (D) JUDGMENT OF : Hamilton J

COUNSEL : M B Evans (P) B A J Coles QC and J T Johnson (D) SOLICITORS : Australian Government Solicitor (P) Conway Leather Shaw (D) CATCHWORDS : CORPORATIONS [118] - Management and administration - Directors and other officers - Liability for officers' acts - Other matters - Whether trustee corporation "at fault" by reason of acts of director and manager for purpose of exercise of right of indemnity against trust fund in respect of tort or contravention of consumer protection provisions of Trade Practices Act 1974 (Cth) - EQUITY [171] - Trusts and trustees - Powers, duties, rights and liabilities of trustees - Indemnity, lien and reimbursement - General principles - Damages awarded against trustee for breach of consumer protection provisions of Trade Practices Act 1974 (Cth) - Trustee claims indemnity - Relevant considerations. LEGISLATION CITED : Trade Practices Act 1974 (Cth) ss 52, 59, 82 Trustee Act 1928 s 59(4) ACCC v Top Snack Foods Pty Ltd [1999] FCA 752 Benett v Wyndham (1862) 4 De G F&J 259; 45 ER 1183 Brown v Jam Factory Pty Ltd (1981) 53 FLR 340 Commissioner for Stamp Duties for New South Wales v Buckle (1998) 192 CLR 226 Henjo Investments Pty Ltd v Collins Marrickville Pty Ltd (1988) 79 ALR 83 In re Gulbenkian's Settlements [1970] AC 508 In re Raybould. Raybould v Turner [1900] 1 Ch 199 J A Pty Ltd v Jonco Holdings Pty Ltd (2000) 33 ACSR 691 Lock v Westpac Banking Corporation (1991) 25 NSWLR 593 Mettoy Pension Trustees Ltd v Evans [1990] 1 WLR 1587 Octavo Investments Pty Ltd v Knight (1979) 144 CLR 360 Re UEB Industries Ltd Pension Plan [1992] 1 NZLR 294 CASES CITED : State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd [2001] NSWCA 47 TPC v Tubemakers of Australia Ltd (1983) 76 FLR 455 Tesco Supermarkets Ltd v Nattrass [1972] AC 153 Universal Telecasters (Qld) Ltd v Guthrie (1978) 32 FLR 360 Walplan Pty Ltd v Wallace (1986) 8 FCR 27 Worrall v Harford (1802) 8 Ves Jun 4; 32 ER 250 H A J Ford, "Trading Trusts and Creditors' Rights" (1981) 13 MULR 1 H A J Ford and W A Lee, Principles of the Law of Trusts (3rd ed 1996) Ch 14 A W Lockhart, "Trading Trusts: An Examination of Trustees Liability and Creditors' Rights (1986) 5 Auckland L Rev 313 The Hon Mr Justice B H McPherson, "The Insolvent Trading Trust", in P D Finn, Essays in Equity (1985) 142 R P Meagher and W M C Gummow, Jacobs' Law of Trusts in Australia (6th ed 1997) [801], [2104] Miller's Annotated Trade Practices Act 2001 (22nd ed) [1.52.5] IIIA Scott on Trusts (4th ed 1988) ss 244 - 247 DECISION : Plaintiff entitled to indemnity out of trust estate.