John Herbert McLachlan & 4 Ors v Christopher Stephen de Vere & 3 Ors [2006] NSWSC 959

New South Wales Supreme Court

CITATION : John Herbert McLachlan & 4 Ors v Christopher Stephen de Vere & 3 Ors [2006] NSWSC 959

HEARING DATE(S) : 14/09/06

JUDGMENT DATE : 26 September 2006

JURISDICTION : Equity Division

JUDGMENT OF : White J

EX TEMPORE JUDGMENT DATE : 09/26/2006

DECISION : See para 62 of judgment.

CATCHWORDS : CORPORATIONS – Practice and procedure – Proceedings on behalf of company by members – Second plaintiff seeks leave pursuant to s 237 Corporations Act 2001 (Cth) to bring proceedings on behalf of fifth plaintiff, a company – Second plaintiff alleges first and second defendants breached fiduciary and statutory duties owed to fifth plaintiff – Whether probable that fifth plaintiff will bring proceedings itself – Whether second plaintiff acting in good faith by seeking to commence proceedings – Best interests of fifth plaintiff – Whether leave should be granted – Leave granted on terms - PRACTICE & PROCEDURE – Discontinuance by co-plaintiffs – Three co-plaintiffs seek leave to discontinue – Where co-plaintiffs do not sue on causes of action held jointly – Leave to discontinue granted.

LEGISLATION CITED : Corporations Act 2001 (Cth)

Peter Taylor et al, Ritchie's Uniform Civil Procedure (NSW) Vol 1, 'Discontinuance by Co-Plaintiffs', Lexis Nexis Butterworths, Sydney, 2005 Fexuto Pty Ltd v Bosnjak Holdings Pty Ltd (1998) 28 ACSR 688; (2001) 37 ACSR 672 CASES CITED : Maher v Honeysett & Maher Electrical Contractors [2005] NSWSC 859 Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313 Chapman v E-Sports Club Worldwide Ltd (2000) 35 ACSR 462 Carpenter v Pioneer Park Pty Ltd [2004] NSWSC 1007