Darkinjung Pty Ltd v Darkinjung Local Aboriginal Land Council & Ors; Hillig v Darkinjung Pty Ltd & Ors [2006] NSWSC 1217

New South Wales Supreme Court

CITATION : Darkinjung Pty Ltd v Darkinjung Local Aboriginal Land Council & Ors; Hillig v Darkinjung Pty Ltd & Ors [2006] NSWSC 1217

HEARING DATE(S) : 03/11/06

JUDGMENT DATE : 16 November 2006

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Barrett J

DECISION : Orders to be made in the respective proceedings as outlined at paragraph 76.

CATCHWORDS : TRUSTS AND TRUSTEES - constructive and remedial trusts - following and tracing - where court to declare that statutory corporation exceeded statutory capacity and authority in transferring money and that transferee accordingly holds on trust for transferor balance of such money still in hand and property on which money was expended - where part of money applied by transferee by way of loan to other companies and acquisition of shares in one such company - whether transferor may follow or trace money into hands of such other companies - whether the other companies are liable to transferor under knowing receipt limb of Barnes v Addy - whether transferor entitled to equitable compensation from transferee - where transferee gave particular indemnity in breach of trust - whether recipient of indemnity entitled to lien on funds for which transferee accountable to transferor - CORPORATIONS - oppression unfair prejudice etc - where sole member alleges itself to be object of such conduct - conduct sourced in manner in which company structured by sole member upon incorporation - whether court would order winding up where sole member itself able to initiate voluntary winding up

LEGISLATION CITED : Corporations Act 2001 (Cth), Part 5.3A. ss.232, 233, 490(a), 491(1), 494, 497, 499(1)

Barnes v Addy (1874) LR 9 Ch App 244 Blythe v Northwood (2005) 63 NSWLR 531 Carl Zeiss Stiftung v Herbert Smith & Co [1969] 2 Ch 276 Cassis v Kalfus (No 2) [2004] NSWCA 315 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 Darkinjung Pty Ltd v Darkinjung Local Aboriginal Land Council & Ors; Hillig v Darkinjung Pty Ltd & Ors; Darkinjung Local Aboriginal Land Council v Warner & Ors [2006] NSWSC 1008 Ernest v Croysdill (1860) 2 DeGF&J 175; 45 ER 589 Foskett v McKeown [2001] 1 AC 102 Goozee v Graphic World Group Holdings Pty Ltd (2002) 42 ACSR 534 Governor and Company of the Bank of Scotland v A Ltd [2001] 1 WLR 751 Gray v Johnston (1868) LR 3 HL 1 Kalls Enterprises Pty Ltd v Baloglow (2006) 58 ACSR 63 Koorootang Nominees Pty Ltd v Australia and New Zealand Banking Group Ltd [1998] 3 VR 16 Labouchere v Tupper (1857) 11 Moo PC 198, 14 ER 670 CASES CITED : Lipkin Gorman (a firm) v Karpnale Ltd [1991] 2 AC 548 Manning River Co-operative Dairy Co Ltd v Shoesmith (1915) CLR 714 O'Neill v Phillips [1999] 1 WLR 1092 Re Legal Costs Negotiators Ltd [1999] 2 BCLC 171 Remrose Pty Ltd v Allsilver Holdings Pty Ltd (2005) 225 ALR 588 Re Polyresins Pty Ltd [1999] 1 QdR 599 Robb Evans of Robb Evans & Associates v European Bank Ltd (2004) 61 NSWLR 75 Say-Dee Pty Ltd v Farah Constructions Pty Ltd [2005] NSWCA 309 Scott v Scott (1963) 109 CLR 649 Smolarek v Liwszyc (2006) 32 WAR 101 Thomas v H.W. Thomas Ltd [1984] 1 NZLR 686 Vacuum Oil Co Ltd v Wiltshire (1945) 72 CLR 319 Watling v Lewis [1911] 1 Ch 414 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459 Yeshiva Properties No 1 Pty Ltd v Marshall (2005) 219 ALR 112