Visnic v Sywak & ors [2008] NSWSC 427

New South Wales Supreme Court

CITATION : Visnic v Sywak & ors [2008] NSWSC 427

HEARING DATE(S) : 31 March 2008 JURISDICTION : Equity Division

JUDGMENT OF : Brereton J

EX TEMPORE JUDGMENT DATE : 31 March 2008

DECISION : No damage attributable to breach of duty to plaintiff established which has not been remedied by declaration of trust and orders for transfer of shares already made. No liability to account to plaintiff in respect of breaches of duty owed to company. Motion for inquiry dismissed with costs.

CATCHWORDS : EQUITY – Remedies – equitable compensation – for breach of fiduciary duty – causation – extent to which connection required between breach and loss – to whom liability to account owed – where defendant owes duties to shareholder – whether liable to account to shareholder for breaches of duty to company – inquiry as to damages – necessity to show some loss or profit to justify reference.

LEGISLATION CITED : (CTH) Corporations Act 2001 (NSW) Uniform Civil Procedure Rules, r 13.4, Pt 46

CATEGORY : Consequential orders

Caffrey v Darby (1801) 31 ER 1159 Chan v Zacharia (1984) 154 CLR 178 Clough v Bond (1838) 40 ER 1016 Dawson, Re; Union Fidelity Trustee Co Ltd v Perpetual Trustee Co Ltd (1966) 84 WN (Pt 1) (NSW) 399 CASES CITED : Gould v Vaggelas (1985) 157 CLR 215 Hill v Rose [1990] VR 129 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 Spies v The Queen (2000) 201 CLR 603 Visnic v Sywak & Ors [2007] NSWSC 701

Milan Visnic (plaintiff) Peter Orest Sywak (first defendant) PARTIES : Adellos Pty Limited (second defendant) Parlamartu Pty Limited (third defendant) Castlove Pty Limited (fourth defendant) Donovi Pty Limited (fifth defendant)