Re Galaxy Media Pty Limited (Rec/Mgrs apptd.) (in liq) [2001] NSWSC 917

(2001) 39 ACSR 483 Reported Decision : [2001] ACL Rep 120 NSW 131 (2002) 20 ACLC 73

New South Wales Supreme Court

CITATION : Re Galaxy Media Pty Limited (Rec/Mgrs apptd.) (in liq) [2001] NSWSC 917 CURRENT JURISDICTION: Equity FILE NUMBER(S) : SC 3491/00 HEARING DATE(S) : 28/08/01, 29/08/01 JUDGMENT DATE : 18 October 2001

In the matter of GALAXY MEDIA PTY LIMITED (Receivers & Managers appointed) (in liquidation) (ACN 067 041 365) Peter Walker and Steven Sherman (in their capacity as Receivers and Managers of Galaxy Media Pty Limited (Rec/Mgrs apptd.) (in liq) (First Plaintiffs) Permanent Nominees (Aust) Pty Limited (ACN 000 154 441) (Second Plaintiff) William Edward Andrew (as Liquidator of Galaxy Media Pty Limited (Rec/Mgrs apptd.) (in liq) (First Defendant) Galaxy Media Pty Limited (Receivers & Managers appointed) (in liquidation) (ACN 067 041 365) (Second Defendant) Kevin Maguire (Third Defendant) PARTIES : Jim Waldo (Fourth Defendant) Joe Zuravle (Fifth Defendant) Jennifer Louise Heyward (Sixth Defendant) Michael Orrick (Seventh Defendant) Don Pascoe (Eighth Defendant) Ian Burns (Ninth Defendant) Warwick Stephen (Tenth Defendant) JUDGMENT OF : Santow J

C R Newlinds (Plaintiff) COUNSEL : G Seib (First and Second Defendants) A Ridley (Third, Fourth, Seventh and Ninth Defendants) Kemp Strang Lawyers (Plaintiff) SOLICITORS : Bowring Stone (First and Second Defendants) Somerville & Co (Third, Fourth, Seventh, Ninth Defendants) CATCHWORDS : CORPORATIONS - Bonus payment - Standing of receiver to challenge liquidator's determination of claim or proof of debt - Is it "wages" for purposes of the statutory priority under ss433(3)(c) and 556(1)(e) of the Corporations Act - Meaning of industrial agreement - Relevance of appointment of receiver and later liquidator to course of dealing relied upon to refute mere agreement to agree. - CONTRACT - Interpretation - Principles of interpretation - Agreement to agree or otherwise void for uncertainty - Scope for implication of term - Part performance - Relevance of principle that party not to take advantage of own wrong - Course of dealing - Agreement to agree - Specific performance and relevance of subsequent events. LEGISLATION CITED : Corporations Act 2001 s9; s433; s513A; s554; s554A; s556; s1321; s1322; s1383; s1399 Corporations Law and/or Corporations Regulation 5.6.5; 5.6.43A Adams v Broke (1842) 1 Y & C 627; 62 ER 1146 Beneficial Finance Limited v Multiplex Constructions Pty Limited (1995) 36 NSWLR 510 Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 BP Refinery Pty Limited v Hastings Shire Council (1977) 52 ALJR 20 Bradford v Zahra [1977] Qd R 24 DCT v Lanstel Pty Ltd (1996) 22 ACSR 314 Denis v McMahon (1989) 7 ACLC 238 Re Equity Funds of Australia (in liq) (1976) 2 ACLR 238 Foley v Classique Coaches Ltd [1934] 3 KB 1 Graeme Webb Investments Pty Ltd v St George Partnership Banking Ltd (2001) 38 ACSR 282 Hawkins v Clayton (1988) 164 CLR 539 Hawkesbury Development Co Ltd v Landmark Finance Pty Limited (1970) 92 WN(NSW) 199 Horton v Jones (1934) 34 SR(NSW) 359 Ex parte James (1874) 9 Ch at 609 Re Kentwood Constructions Ltd [1960] 2 All ER 655 Kymbo Pty Limited v Paxton Management Pty Limited (Young CJ in Eq, NSWSC, 20 July 2001, unreported) CASES CITED : Lewis v Notrex Pty Ltd ([2001] NSWSC 610 Lord Corporation Pty Limited v Green & Ors (1991) 22 NSWLR 532 Macauley v Greater Paramount Theatres Limited (1921) 22 SR 66 McGill v National Australia Bank [2001] NSWCA 221 May & Butcher Ltd v The King [1934] 2 KB 17 Pavey & Mathews Pty Limited v Paul [1986?1987] 162 CLR 221 Price v Strange [1978] Ch 337 Powell v Braun [1954] 1 WLR 401 Ridgway v Wharton (1857) 6 HLC 238 Shardlow v Cotterell (1881) 20 CHD 90 SportsVision Australia Pty Ltd v Tallglen Pty Ltd (1998) 44 NSWLR 203 Tanning Research Laboratories Inc v O'Brien (1990) 169 CLR 332 Upper Hunter District Council v Australian Chilling & Freezing Co Ltd (1968) 118 CLR 429 Westpac Banking Corporation v Totterdell (1998) 29 ACSR 448 Woodhouse v A. D. A. Manufacturing Co Ltd [1954] SASR 263 York Air Conditioning and Refrigeration (A'sea) Pty Ltd v The Commonwealth (1949) 80 CLR 11 Zucchiatti v Ferrara (1976) 1 BPR 9199 DECISION : Receivers' challenge fails.