White ACT (In Liquidation) v G B White & Ors [2004] NSWSC 71

Reported Decision : 49 ACSR 220

New South Wales Supreme Court

CITATION : White ACT (In Liquidation) v G B White & Ors [2004] NSWSC 71 revised - 7/02/2005 HEARING DATE(S) : 3/11/03, 4/11/03, 5/11/03, 6/11/03, 7/11/03, 10/11/03, 11/11/03, 12/11/03, 13/11/03, 14/11/03, 17/11/03, 18/11/03, 19/11/03, 20/11/03, 21/11/03, 24/11/03, 25/11/03, 26/11/03, 27/11/03, 28/11/03, 1/12/03, 2/12/03, 3/12/03, 4/12/03, 8/12/03, 9/12/03, 10/12/03, 11/12/03 JUDGMENT DATE : 25 February 2004

JUDGMENT OF : McDougall J at 1 DECISION : See paragraph [555] of judgment

CATCHWORDS : CORPORATIONS - directors' duties - fraudulent breach of duty - whether actual knowledge required - whether acting as de facto directors - divestiture of assets - whether purpose of transactions to leave no asset to meet future claim - INSOLVENCY - whether reasonable grounds to expect insolvency - whether unliquidated damages are a debt due and payable - whether failure to have regard to interests of unsecured creditor - PRACTICE AND PROCEDURE - whether pleaded case extended to non-intentional breach of duty - case opened beyond pleadings - whether plaintiff should be held to pleaded case Limitation Act 1969 LEGISLATION CITED : Corporations Act 2001 Companies Code Corporations Law Australian Securities and Investments Commission v Plymin (No 1) [2003] VSC 123 Boardman v Phipps [1967] 2 AC 46 Brunskill v Sovereign Marine & General Insurance Co Ltd (1985) 59 ALJR 842, 844 Constantinidis v JGL Trading Pte Ltd (1995) 17 ACSR 625, 636 Devries v Australian National Railways Commission (1993) 177 CLR 472, 479 Dunn v Shapowloff (1978) 2 NSWLR 235, 244 Emanuel Management Pty Ltd v Foster's Brewing Group Ltd [2003] QSC 205 Geneva Finance Ltd v Resource & Industry Ltd (2002) 169 FLR 152 Hamilton v Kaljo (1989) 17 NSWLR 381 Iso Lilodw' Aliphumeleli Pty Ltd (in liq) v Commissioner of Taxation (2002) 42 ACSR 561 CASES CITED : Keech v Sandford (1726) Sel Cas t King 61; 25 ER 223 Nocton v Lord Ashburton [1914] AC 932, 954 Norberg v Wynrib [1992] 2 SCR 226, 272 Nuthall v Nuthall [2001] NSWSC 950 Pilmer v The Duke Group Ltd (in liq) (2001) 207 CLR 165, 196-199 Re Hyams: Official Receiver v Hyams (1970) 19 FLR 232 Re Saebar: Official Receiver v Saebar (1971) 18 FLR 317 Re Wise: ex parte Mercer (1886) 17 QBD 290 Southern Cross Interiors Pty Ltd (in liq) v Deputy Commissioner of Taxation (2001) 53 NSWLR 213 Totterdell v Nicol-Burmeister (1995) 13 ACLC 1521 Wicks v Marsh, ex parte Wicks [1993] 2 Qd R 583, 585 Williams v Minister, Aboriginal Land Rights Act 1983 (1994) 35 NSWLR 497 White Constructions (ACT) Pty Limited (in liquidation) v Geoffrey Bernard White (First Defendant) Travers William Duncan (Second Defendant) John William Spinks (Third Defendant) Frank Stratton McAlary (Fourth Defendant) Michael Frank McAlary (Fifth Defendant) White Constructions Pty Limited (formerly known as White Constructions Limited) (Sixth Defendant) Exxon Coal Australia Pty Limited (formerly known as White Industries Limited) (Seventh Defendant) PARTIES : PDC Constructions Pty Ltd (Eighth Defendant) White Industries (Qld) Pty Limited (Ninth Defendant) White Constructions Incentive Share Scheme Pty Limited (Tenth Defendant) [Deleted] WIL Civil and Mining Engineering Pty Limited (formerly known as Keathson (WA) Pty Ltd and as WIL Plant Hire Pty Limited) (Eleventh Defendant) White Constructions (NT) Pty Limited (Twelfth Defendant) Norwest Development Corporation Limited (Thirteenth Defendant) [Deleted] PDC Plant Hire Pty Ltd (Fourteenth Defendant) White Constructions (NSW) Pty Ltd (Fifteenth Defendant) White Property Developments Pty Limited (Sixteenth Defendant) White Industries Australia Limited (Seventeenth Defendant) FILE NUMBER(S) : SC 50144/02 COUNSEL : D E Grieve QC/S D Epstein SC/J Horowitz (Plaintiff) B W Rayment QC/D T Kell (Defendants) SOLICITORS : Deacons (Plaintiff) Mallesons Stephen Jaques (Defendants)