Kassem v Zhang [2008] NSWSC 1287

New South Wales Supreme Court

CITATION : Kassem v Zhang [2008] NSWSC 1287

HEARING DATE(S) : 01/12/08

JUDGMENT DATE : 4 December 2008

JURISDICTION : Equity Division Corporations List

JUDGMENT OF : Barrett J

1. Order that the plaintiffs' interlocutory process filed on 6 November 2008 be dismissed. DECISION : 2. Order that the originating process be dismissed. 3. Order that the plaintiffs pay the defendant's costs of the whole proceedings. 4. Order that the plaintiffs not treat as within s 556(1)(a) or s 556(1)(dd) of the Corporations Act 2001 (Cth) costs for which they are liable under order 3, except costs of and incidental to the interlocutory process filed on 6 November 2008.

CATCHWORDS : CORPORATIONS - winding up - company in liquidation - liquidators commence proceedings claiming order for payment of money to company by reason of voidable transaction - proceedings commenced after expiration of s 588FF(3) limitation period - PROCEDURE - liquidators seek leave to amend - amendment to substitute company as plaintiff to pursue different cause of action based on same facts - whether such amendment within provisions with respect to amendment - CORPORATIONS - liquidators - personal liability for costs - costs "properly incurred" recoverable out of property of company - whether costs "properly incurred" where proceedings should have been seen to be doomed to fail

LEGISLATION CITED : Civil Procedure Act 2005, ss 64, 65 Corporations Act 2001 (Cth), ss 9, 556(1)(a), 556(1)(dd 588FF(1), (3),

CATEGORY : Principal judgment

Agtrack (NT) Pty Ltd (t/a Spring Air) v Hatfield [2005] HCA 38; (2005) 223 CLR 251 Gordon v Tolcher [2006] HCA 62; (2006) 231 CLR 334 Greenwood v Papademetri [2007] NSWCA 221 Hughes v Pump House Hotel Co Ltd (No 2) [1902] 2 KB 485 Hypec Electronics Pty Ltd v Mead [2004] NSWSC 731; (2004) 61 NSWLR 169 Ivymere Pty Ltd v Cooloombla Pty Ltd (No 2) (unreported, NSWSC, 25 August 1997) CASES CITED : Knight v McCann-Erickson Pty Ltd (unreported, NSWSC, 26 August 1991) McInnes v Wingecarribee Shire Council (1987) 10 NSWLR 660 Re Buena Vista Motors Pty Ltd [1971] 1 NSWLR 72 Re Silver Valley Mines (1882) 21 ChD 381 Rickard Constructions Pty Ltd v Moretti [2004] NSWSC 1041; (2004) 188 FLR 278 Rudolphy v Lightfoot [1999] HCA 61; (1999) 197 CLR 500 Silvia v Brodyn Pty Ltd[2007] NSWCA 55; (2007) 25 ACLC 382