Johnston v McGrath & Ors [2005] NSWSC 1183

New South Wales Supreme Court

CITATION : Johnston v McGrath & Ors [2005] NSWSC 1183

HEARING DATE(S) : 21/10/05, 25/10/05

JUDGMENT DATE : 23 November 2005

JUDGMENT OF : Gzell J

DECISION : Claim for damages under Trade Practices Act 1974 (Cth), s 82 not made out as loss not occasioned by the misleading and deceptive conduct and appeal from liquidators' proof of debt dismissed. Claim would have been postponed as Corporations Act 2001 (Cth), s 563A applies to transferee shareholders as well as subscriber shareholders. Client legal privilege in statement not lost.

CATCHWORDS : TRADE PRACTICES - Consumer Protection - Whether misleading and deceptive conduct of HIH Insurance by misrepresentation overtaken by subsequent press statements to the contrary - Whether plaintiff's failure to heed press statements a novus actus interveniens - CORPORATIONS - Winding up - Appeal from liquidators' rejection of proof of debt - Whether claim for damages under Trade Practices Act 1974 (Cth), s 82 for inducement to enter on-market purchase of worthless HIH shares a debt due in a person's capacity as a member and postponed to all other creditors under Corporations Act 2001 (Cth), s 563A - EVIDENCE - Client Legal Privilege - Whether privilege in statement provided to solicitor for purpose of drafting an affidavit to which no reference made in the affidavit is impliedly waived by the reading of the affidavit

Trade Practices Act 1974 (Cth) Corporations Law Corporations Act 2001 (Cth) Corporations Regulations 2001 (Cth) LEGISLATION CITED : The Building Societies Act 1986 (Vic) Companies (Victoria) Code Companies Act 1862 Insolvency Act 1986 (UK) Evidence Act 1995