Mark Silbermann v CGU Inusrance Limited; John Huyshe Greaves v CGU Insurance Limited; John David Rich v CGU Insurance Limited; One.Tel Limited (In Liq) v Rich & Ors [2003] NSWSC 1127

Reported Decision : 48 ACSR 231

New South Wales Supreme Court

CITATION : Mark Silbermann v CGU Inusrance Limited; John Huyshe Greaves v CGU Insurance Limited; John David Rich v CGU Insurance Limited; One.Tel Limited (In Liq) v Rich & Ors [2003] NSWSC 1127 HEARING DATE(S) : 21 November 2003 JUDGMENT DATE : 3 December 2003

JURISDICTION: Equity Division Commercial List JUDGMENT OF : Bergin J DECISION : Application for concurrent hearings dismissed. Application for stay of Insurance Proceedings dismissed. Application for stay of Bonus proceedings dismissed.

CATCHWORDS : [CONCURRENT HEARINGS] - Applications by CGU for concurrent hearings of civil proceedings with civil penalty proceedings in which there is some overlap of issues of fact and law - Amendment to pleadings removing allegations of offences under the Corporations Act relied upon as a material change to circumstances - [STAY APPLICATIONS] - Plaintiffs' applications to stay civil proceedings pending conclusion of civil penalty proceedings in which they are the defendants - Further application for stay of proceedings by some of the defendants in which the liquidator seeks remedies in relation to alleged bonus payments in the amount of $14 million. Court's approach - Application of guidelines in McMahon v Gould - Balancing of respective rights - Whether just and convenient to stay proceedings Commercial Causes Act 1903 (NSW) LEGISLATION CITED : Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Supreme Court Rules 1970 (NSW) Australian Securities and Investments Commission v Drury Management Pty Limited [2003] QSC 246 Australian Securities and Investments Commission v John David Rich & Ors; One.Tel Limited (In Liq) v John David Rich & Ors; John Huyshe Greaves v CGU Insurance Limited; John David Rich v CGU Insurance Limited and Mark Silbermann v CGU Insurance Limited (Unreported, NSWSC, Austin J, 24 June 2003) Australian Securities and Investments Commission v Vines [2003] NSWSC 995 Australian Securities Commission v Kavanagh (1994) 13 ACSR 573 Beecee Group Limited v Barton & Ors (1985) 5 ACLR 33 Briginshaw v Briginshaw (1938) 60 CLR 336 Halabi v Westpac Banking Corporation (1989) 17 NSWLR 26 J Bollinger SA v Goldwell Limited [1971] RPC 412 McMahon v Gould (1982) 7 ACLR 202 CASES CITED : MLC Life Limited v Abberwood Pty Limited (Receiver and Manager Appointed) (Unreported, NSWSC, Rogers CJ Comm D, 5 April 1989) Olbers Co Limited v Commonwealth (No 2) [2003] FCA 177 Philippine Airlines v Goldair (Aust) Pty Limited [1990] VR 385 R v Institute of Chartered Accountants; Ex Parte Brindell [1994] BCC 297 Rich & Silbermann v ASIC [2003] NSWCA 342 Rochfort v John Fairfax and Sons Limited [1972] 1 NSWLR 16 Silbermann & Ors v CGU Insurance Limited (2003) 47 ACSR 21 Sogelease Australia Limited v Griffin [2002] NSWSC 1066 State of Western Australia v Bond Corporation Holdings Pty Limited & Ors (1992) 37 FCR 150 Tringali v Stewardson Stubbs and Colletts Limited (1966) 66 SR (NSW) 335 Yuill v Spedley Securities Limited (In Liq) & Ors (1992) 8 ACSR 272 Rodney Stephen Adler (Fifth Defendant in 50207/02) Australian Securities and Investments Commission (Respondent to Notices of Motion in 50141/01, 50096/02 and 50150/02) CGU Insurance Limited (Defendant in 50141/01, 50150/02 and 50096/02) PARTIES : John Huyshe Greaves (Plaintiff in 50096/02; Sixth Defendant in 50207/02) Lifecell Pty Limited (Second Defendant in 50207/02) One.Tel Limited (In Liquidation) (Plaintiff in 50207/02) John David Rich (Plaintiff in 50150/02; First Defendant in 50207/02) Mark Silbermann (Plaintiff in 50141/01) FILE NUMBER(S) : SC 50141/01; 50150/02; 50096/02; 50207/02 RB Macfarlan QC and JPA Durack (Australian Securities and Investments Commission) MJ Slattery QC, RA Dick and S Wells (One.Tel Limited (In Liq)) COUNSEL : BW Walker SC, DL Williams SC and MJ Steele (Silbermann, Rich and Lifecell Pty Limited) AW Street SC and EG Romaniuk (CGU Insurance Limited) JB Simpkins SC and NJ Kidd (Greaves) FG Lever SC (Rodney Adler) Australian Securities and Investments Commission (Respondent to Notices of Motion in 50141/01, 50150/02 and 50096/02) Rodney Stephen Adler (Swaab Attorneys) CGU Insurance Limited (Colin Biggers & Paisley) SOLICITORS : John Huyshe Greaves (Watson Mangioni) Lifecell Pty Limited (Joanne Kelly Solicitors) One.Tel Limited (In Liq) (Kemp Strang) John David Rich (Joanne Kelly Solicitors) Mark Silbermann (Joanne Kelly Solicitors)