NCR Australia v Credit Connection [2004] NSWSC 1

New South Wales Supreme Court

CITATION : NCR Australia v Credit Connection [2004] NSWSC 1 HEARING DATE(S) : 2, 3, 4 September 2003 and subsequent written submissions JUDGMENT DATE : 14 January 2004 JURISDICTION: Equity JUDGMENT OF : Austin J DECISION : See under heading "Conclusion"

CATCHWORDS : EQUITY - constructive trusteeship - knowing assistance - whether defendants had knowledge of trustee's dishonest and fraudulent design - CORPORATIONS - authority of officers and agents - usual authority of a national credit manager - whether national credit manager had actual or ostensible authority to bind company to engage a mercantile agent LEGISLATION CITED : Corporations Act 2001 (Cth), ss 127, 129 Commercial Agents and Private Inquiry Agents Act 1963 (NSW) ss 4, 6, 26, 28, 29, 31, 33A, 34, 39B Barnes v Addy (1874) LR 9 Ch App 244 Breen v Williams (1997) 186 CLR 71 Burdick v Garrick (1870) LR 5 Ch 233 Cohen v Cohen (1929) 42 CLR 91 Consul Development Pty Ltd v DPC Estates Pty Ltd (1995) 132 CLR 373 Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising & Addressing Co Pty Ltd (1975) 133 CLR 72 Deputy Commissioner of Taxation v Clark (2003) 45 ACSR 332 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 CASES CITED : Henderson v Merritt Syndicates Ltd [1995] 2 AC 145 Henry v Hammond [1913] 2 KB 515 Jones v Dunkel (1959) 101 CLR 298 Mercantile Mutual Insurance (Australia) Ltd v Farrington (1996) 44 NSWLR 634 Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 146 Palette Shoes Pty Ltd (in liq) v Krohn (1937) 58 CLR 1 Reuters Australia Pty Ltd v The Credit Connection Pty Ltd [2000] NSWSC 221 Royal Brunei Airlines v Tan [1995] 2 AC 378 Soar v Ashwell [1893] 2 QB 390 Walker v Corboy (1990) 19 NSWLR 382 NCR Australia Pty Ltd (P) The Credit Connection Pty Ltd (in liq) (D1) PARTIES : Ray Naumoski (D2) Gina Naumoski (D3) John Cannon (D4) FILE NUMBER(S) : SC 2316/00, 2460/00 COUNSEL : David McGovern SC with Peter Newton (P) Graham McVay (D2 and D3) SOLICITORS : Heidtman & Co (P) DG Bowles & Co (D2 and D3)