Fiduciary v Morningstar Research [2004] NSWSC 664

New South Wales Supreme Court

CITATION : Fiduciary v Morningstar Research [2004] NSWSC 664 HEARING DATE(S) : 16, 17 and 18 June 2004 JUDGMENT DATE : 27 July 2004 JURISDICTION: Equity JUDGMENT OF : Austin J DECISION : See under heading "Conclusions"

CATCHWORDS : PRACTICE & PROCEDURE - security for costs - application for order for security against two corporate plaintiffs, where person who controls them is also a plaintiff - plaintiffs unable to provide security - whether presence of individual plaintiff should prevent court from ordering corporate plaintiffs to provide security - whether proceedings by individual plaintiff should be stayed until corporate plaintiffs provide security as ordered - whether financial ability of litigation funder is relevant - whether corporate plaintiffs must prove their prior financial position in order to establish that the defendants' wrongdoing led to their impecuniosity - other relevant considerations in security for costs application - considerations relevant to quantum of security - PRACTICE & PROCEDURE - strike-out application - whether it is reasonably arguable that notice of intention to terminate an agreement was given, though the address in the agreement was not used - INDUSTRIAL RELATIONS - remuneration cap under s 108A of Industrial Relations Act - instalments of base remuneration credited to loan account with employer, and subsequently that loan is capitalised, by the issue of shares, during the 12 months prior to termination of employment - whether application of loan account should be taken into account in determining whether the remuneration cap was exceeded - COSTS - circumstances in which it is appropriate to order that costs be assessed and paid forthwith Corporations Act 2001 (Cth), s 237, 1335 Industrial Relations Act 1996 (NSW), s 106, 108A LEGISLATION CITED : Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth), s 5 Jurisdiction of Courts (Cross-Vesting) Act 1987 (NSW), s 8 Supreme Court Rules, Part 52A rule 9; Part 53 rule 2 Australian Agricultural Co Ltd v AMP Life Ltd [2003] FCA 1134 Bell Wholesale Co Ltd v Gates Export Corporation (1984) 52 ALR 176 Bhagat v Murphy [2000] NSWSC 892 BPM Pty Ltd v HPM Pty Ltd (1996) 131 FLR 339 Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates (Australia) Pty Ltd (1986) 13 FCR 46 Cassidy v Medical Benefits Fund of Aust Ltd [2001] FCA 700 Chartspike Pty Ltd (in liq) v Chahoud [2001] NSWSC 585 Commander Australia Ltd v Kerr [2004] NSWIRComm 74 Cowell v Taylor (1885) 31 Ch D 34 D'Hormusgee & Co v Grey (1882) 10 QBD 13 Equity Access Ltd v Westpac Banking Corporation (1989) ATPR 40-972 Fiduciary Ltd v Morningstar Research Pty Ltd (2002) 55 NSWLR 1 GEC Marconi Systems Pty Ltd v BHP Information Technology Pty Ltd (2003) 128 FCR 1 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Hancock Prospecting Pty Ltd v BHP Minerals Pty Ltd [2003] WASCA 259 Harpur v Ariadne Australia Ltd [1984] 2 Qd R 523 Hession v Century 21 South Pacific Ltd (in liq) (1992) 28 NSWLR 120 Horrobin v Australia & New Zealand Banking Group Ltd (unreported, 6 June 1997, per Priestley JA) Idoport Pty Ltd v National Australia Bank Ltd [2001] NSWSC 744 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Management Ltd [2003] NSWSC 609 CASES CITED : Interwest Ltd v Tricontinental Corporation Ltd (1991) 5 ACSR 621 Jeffcott Holdings Ltd v Paior (1996) 15 ACLC 28 John Bishop (Caterers) Ltd v National Union Bank Ltd [1973] 1 All ER 707 Lubrizol Corp Inc v Imperial Chemical Industries plc [2000] FCA 1464 Lynnebry Pty Ltd v Farquhar Enterprises Pty Ltd (1977) 3 ACLR 133 MA Productions Pty Ltd v Austarama Television Pty Ltd (1982) 7 ACLR 97 M'Connell & East v Johnston (1801) 1 East 431 Melville v Craig Nowlan & Associates Pty Ltd (2001) 54 NSWLR 82 Midland Brick Co Pty Ltd v CMS Gas Transmission of Australia [2003] WASC 222 Morningstar Research Pty Ltd v Fiduciary Ltd [2003] FCA 870 Morris v Hanley [2000] NSWSC 957 Pan Foods Company Importers & Distributors Pty Ltd v ANZ Banking Group Ltd (2000) 74 ALJR 791 Pearson v Naydler [1977] 1 WLR 899 PS Chellaram & Co Ltd v China Ocean Shipping Co (1991) 102 ALR 321 Rajski v Computer Manufacture & Design Pty Ltd [1982] 2 NSWLR 443 Rexam Australia Pty Ltd v Optimum Metallising Pty Ltd [2002] NSWSC 916 RSL Com Personal Communications Pty Ltd v Mobile Tron Pty Ltd [2001] NSWSC 819 South Sydney District Rugby League Football Club Ltd v News Ltd [2000] FCA 519 Spiel v Commodity Brokers Australia Pty Ltd (in liq) (1983) 8 ACLR 410 Sykes v Sykes (1869) LR 4 CP 645 [102 ER 167] Winthrop v Royal Exchange Assurance Co (1755) 1 Dick 282 [21 ER 277] Yandil Holdings Pty Ltd v Insurance Company of North America (1985) 3 ACLC 542 Fiduciary Ltd (P1, XD1) Graham John Rich (P2, XD2) Fiduciary Consultants Ltd (P3, XD3) Morningstar Research Pty Ltd (D1, XC1) PARTIES : Morningstar Inc (D2, XC2) Joe Mansueto (D3) Tao Huang (D4) Donald James Phillips II (D5) Bevin Desmond (D6) Nicholas John Reynolds (D7) FILE NUMBER(S) : SC 5308/01 COUNSEL : RJ Ellicott QC with RD Glasson (Ps) RM Smith SC with SA Goodman (D2-D7) SOLICITORS : Nash O'Neill Tomko Lawyers (Ps) Clayton Utz (D2-D7)