Mainland Holdings Ltd v Szady [2002] NSWSC 699

New South Wales Supreme Court

CITATION : Mainland Holdings Ltd v Szady [2002] NSWSC 699 FILE NUMBER(S) : SC 4095/99 HEARING DATE(S) : 08/07/02,09/07/02,10/07/02,11/07/02 JUDGMENT DATE : 22 August 2002

PARTIES : Mainland Holdings Limited - Plaintiff Arthur Emil Szady - Defendant JUDGMENT OF : Gzell J

COUNSEL : Mr F G Lever for the Plaintiff Mr R I Bellamy for the Defendant SOLICITORS : Abbot Tout Solicitors for the Plantiff Ramensky Lawyers for the Defendant CATCHWORDS : EQUITY - Fiduciary obligations - Implied term of contract for good faith and fair dealing - Fiduciary duty of good faith and fidelity - Relevant principles - Secret commissions or profits - No need to establish loss - Election of account of profits - Property acquired held in trust - EMPLOYMENT LAW - The contract of service and rights, duties and liabilities as between employer and employee - Summary dismissal - No right to relocation expense reimbursement on proper construction of contract LEGISLATION CITED : Evidence Act 1995 Jones v Dunkel (1959) 101 CLR 278 at 308, 312 Briginshaw v Briginshaw (1938) 60 CLR 336 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd (1992) 110 ALR 449 at 449-450 BP Refinery (Westonport) Pty Ltd v Shire of Hastings (1977) 180 CLR 266 at 282 Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337 Hughes Aircraft Systems International v Air Services of Australia (1997) 76 FCR 151 at 188 Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 76 ALJR 436 at 445 Hospitality Group Pty Ltd v Australian Rugby Union Ltd (2001) 110 FCR 157 at 196 Attorney-General v Blake [2001] 1 AC 268 Hivac Ltd v Park Royal Scientific Instruments Ltd [1946] 1 Ch 169 Yarlett v New Guinea Motors Pty Ltd [1985] PNGLR 14 Service Station Association Ltd v Berg Bennett & Associates Pty Ltd (1993) 45 FCR 84 at 96-97 Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 at 268 CASES CITED : Blyth Chemical Ltd v Bushnell (1933) 49 CLR 66 at 81-82 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 at 96-97 Finn, Fiduciary Obligations (1977) at 267 Concut Pty Ltd v Worrell (2000) 75 ALJR 312 at 318 Nocton v Lord Ashburton (1914) AC 932 at 956-957 Boston Deep Sea Fishing and Ice Company v Ansell (1888) 39 ChD 339 Cross on Evidence (1996) par 1215 Reading v Attorney General (1951) AC 507 Consul Development Pty Ltd v DPC Estates Pty Ltd (1974-1975) 132 CLR 373 at 394 Warman International Ltd v Dwyer (1994-2995) 182 CLR 544 at 556-562 Attorney General for Hong Kong v Reid [1994] 1 AC 324 Acme Office Service Pty Ltd v Ludstrom [2002] NSWSC 277 Dr Martens Australia v Barter v Shoe Co of Australia (1997) 75 FCR 230 Zobory v Commissioner of Taxation (1995) 64 FCR 86 Lister & Co v Stubbs (1890) 45 ChD 1 DECISION : Declaration that portion of proceeds of sale of property held in trust for plaintiff. Order for payment. Declaration that proceeds of sale of motor vehicle held in trust for defendant. Cross-claim otherwise dismissed. Defendant to pay costs of action and cross-claim.