Right Price Confectionery v Sengos [2003] NSWSC 117

New South Wales Supreme Court

CITATION : Right Price Confectionery v Sengos [2003] NSWSC 117 HEARING DATE(S) : 12/11/02, 13/11/02 JUDGMENT DATE : 4 March 2003 JURISDICTION: Equity Division JUDGMENT OF : Barrett J DECISION : Claims in plaintiffs' amended statement of claim filed on 16 May 2000 dismissed with costs

CATCHWORDS : CORPORATIONS - causes of action asserted by company and director/shareholder alleged to have exposed plaintiffs to loss from litigation - no causal connection shown between any such loss and alleged breaches of duty and statutory wrongs Brunninghausen v Glavanics (1999) 46 NSWLR 538 CASES CITED : Henville v Walker (2001) 206 CLR 459 Percival v Wright [1902] 1 Ch 421 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 Right Price Confectionery Pty Limited - First Plaintiff PARTIES : David Gregory Radford - Second Plaintiff Paul Sheridan Sengos - Defendant FILE NUMBER(S) : SC 3501/99 COUNSEL : Second Plaintiff in person Mr J F Hassett, Solicitor - Defendant SOLICITORS : Second Plaintiff in person Hassett Dixon - Defendant

- 29 - IN THE SUPREME COURT OF NEW SOUTH WALES EQUITY DIVISION

BARRETT J

TUESDAY, 4 MARCH 2003

3501/99 – RIGHT PRICE CONFECTIONERY PTY LIMITED & ANOR v PAUL SHERIDAN SENGOS JUDGMENT 1 By their amended statement of claim filed on 16 May 2000, the plaintiffs sue the defendant upon several causes of action. The first plaintiff, a company of which the second plaintiff is now the sole member and sole director, pleads certain duties owed to it by the defendant and breach of those duties. The duties are those that arose from a contract under which the defendant served as managing director of the first plaintiff and from the relationship that existed between the company and the defendant as one of its directors. The duties, as pleaded are said to be duties: "a) to exercise a reasonable degree of care and diligence;