Sydney Concrete & Contracting Pty Limited & Anor v BNP Paribas Equities (Australia) Limited & Anor [2004] NSWSC 530

New South Wales Supreme Court

CITATION : Sydney Concrete & Contracting Pty Limited & Anor v BNP Paribas Equities (Australia) Limited & Anor [2004] NSWSC 530 HEARING DATE(S) : 02/06/03; 03/06/03; 04/06/03; 05/06/03; 06/06/03; 11/09/03; 12/09/03; 18/09/03; 30/09/03; 02/10/03 JUDGMENT DATE : 25 June 2004

JUDGMENT OF : Nicholas J DECISION : See paras 185 and 186

CATCHWORDS : COMMERCIAL - share and options trading - margin lending facility - identity of parties to agreements for margin lending facility - powers of attorney - whether sub-attorney validly appointed - whether documents executed by sub-attorney binding upon donors of the power - whether power of attorney general or special - whether special power of attorney attracts Powers of Attorney Act 1956 (ACT) - whether documents executed under unregistered power of attorney effective - novation - estoppel by convention - whether agreement in respect of margin loan facility - margin call under options agreement and loan agreement - whether trader's failure to meet margin call justified closure of options and sale of shares under the agreements LEGISLATION CITED : Powers of Attorney Act 1956 (ACT), s 2(1), s 3AA, s 3AC(1), s 3AC(4), s 11(1)(b), s 11(2), s 19, Schedule 1, Forms 1 and 2 Amalgamated Investment Property Co. Ltd (In Liquidation) v Texas Commerce International Bank Ltd (1982) 1 QB 84 Austotel Pty Ltd v Franklins Selfserve Stores Pty Ltd (1989) 16 NSWLR 582 Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153 CASES CITED : Clazy v The Registrar of Titles (1902) 4 WALR 113 Falinski v Commonwealth Bank of Australia (Unreported, NSWCA 6 Feb 1998) Fightvision Pty Ltd v Onisforou & Ors (1999) 47 NSWLR 473 Hide and Skin Trading Pty Ltd v Oceanic Meat Traders Limited (1990) 20 NSWLR 310 Walton's Stores (Interstate) v Maher (1988) 164 CLR 387 Sydney Concrete & Contracting Pty Limited - First Plaintiff PARTIES : Sydney Concrete & Contracting Pty Limited as Trustee for the Sydney Concrete & Contracting Superannuation Fund - Second Plaintiff BNP Paribas Equities (Australia) Limited - First Defendant BNP Paribas Private (Australia) Limited - Second Defendant FILE NUMBER(S) : SC 50185/01 COUNSEL : J T Svehla/J B Conomy - Plaintiffs G A Seib - Defendants SOLICITORS : Holman Webb - Plaintiffs Piper Alderman - Defendants