Karam v ANZ Banking Group Limited [2000] NSWSC 596

Reported Decision : [2000] 34 ACSR 545 [2000] 18 ACLC 590

New South Wales Supreme Court

CITATION : Karam v ANZ Banking Group Limited [2000] NSWSC 596 revised - 29/06/2000 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 2142/97 HEARING DATE(S) : 20/06/00, 21/06/00, 22/06/00, 27/06/00 JUDGMENT DATE : 28 June 2000

Charles Raymond Karam (First Plaintiff/First Cross Defendant) John Raymond Karam (Second Plaintiff/Second Cross Defendant) PARTIES : Nada Marie Karam (Third Plaintiff/Third Cross Defendant) Diane Karam (Fourth Plaintiff/Fourth Cross Defendant) Australia & New Zealand Banking Group Limited (First Defendant/Cross-Claimant) William Croker (Second Defendant) JUDGMENT OF : Santow J

COUNSEL : M L D Einfeld, QC/D B Studdy (Plaintiffs/Cross Defendants)) M Walton, SC/P J Dowdy (First Defendant/Cross Claimant) SOLICITORS : Webster O'Halloran & Associates (Plaintiffs/Cross Defendants) Coudert Brothers (First Defendant/Cross Claimant) CATCHWORDS : PROCEDURE — CORPORATIONS — Amending pleadings to enable corporation to sue directly when previously shareholders suing for loss in respect of their shares — Whether permissible after trial commenced — Effect of limitation period — Joinder under Pt 8 and effect of Pt 8 r11(3) whereby takes effect not from original pleading but from joinder — Permissibility of recourse to Pt 20 r4 — Justice of the case and its relevance — Jurisdiction of court to allow and its exercise — Preferable course statutory derivative action under s236 and s237 of Corporations Law or fifth exception to rule in Foss v Harbottle — Which applies in relation to accrued rights — Is removal of common law derivative action by statutory derivative action procedural or substantive — In any event retroactive as a remedial statute — Effect of overriding purpose of SCR "just, quick and cheap" on construction of rules and in particular Pt 20 r4 — Costs. Corporations Law Pt 2F.1A, ss236, 237, 242, s1472 LEGISLATION CITED : Supreme Court Act 1970 ss21 and 23 Supreme Court Rules Pt 1 r3, r11A and 12; Pt 8 r2, r8, r10, r11; Pt 20 r4, (5A) Limitation Act 1969 (NSW) Australian Coastal Shipping Commission v Curtis Cruising Pty Limited (1989) 17 NSWLR 734 Bowler v John Mowlem & Co Limited [1954] All ER 556 Cohen v McWilliam (1995) 38 NSWLR 476 Fernance v Nominal Defendant (1989) 17 NSWLR 710 Foss v Harbottle (1843) 2 Hare 461; 67 ER 189 Gould v Vaggelas (1983-1985) 157 CLR 215 CASES CITED : John Pfeiffer Pty Limited v Rogerson [2000] HCA 36 (21 June 2000, unreported) Kenny & Good Pty Limited v MGICA (1992) Limited (1999) 163 ALR 611 McGee v Yeomans [1997] 1 NSWLR 273 NSW Bar Association v Muirhead (1988) 14 NSWLR 173 Qantas Airways v A F Little Pty Limited (1981) 2 NSWLR 34 Queensland v JL Holdings Pty Limited (1997) 189 CLR 146 Scarel Pty Ltd v City Loan and Credit Pty Limited (1988) 17 FCR 344 Wardley Australia Limited v Western Australia (1992) 175 CLR 514 DECISION : Leave granted under Pt20 r4 to amend.