Heperu Pty Ltd & Ors v Morgan Brooks Pty Ltd & Ors (No 2) [2007] NSWSC 1438

New South Wales Supreme Court

CITATION : Heperu Pty Ltd & Ors v Morgan Brooks Pty Ltd & Ors (No 2) [2007] NSWSC 1438 This decision has been amended. Please see the end of the judgment for a list of the amendments.

HEARING DATE(S) : 10 to 19 and 23 April 2007

JUDGMENT DATE : 12 December 2007

JURISDICTION : Equity Division

JUDGMENT OF : Palmer J

DECISION : See paragraphs [175]-[178]

CATCHWORDS : PRINCIPAL AND AGENT – AUTHORITY – Whether fraudster had actual or apparent authority to enter contract for First Defendant. - TRUSTS – FIDUCIARY DUTY – Whether wife of fraudster knew of fraudulent activity – whether wife was knowing recipient of misappropriated funds. - BANKING – CHEQUES – CONVERSION – Whether cheques obtained by fraud converted by Fifth Defendant.

Civil Procedure Act 2005 (NSW) – s 100 LEGISLATION CITED : Contracts Review Act 1980 (NSW) – s 7 Fair Trading Act 1987 (NSW) – s 42

- Barnes v Addy (1874) LR 9 Ch App 244 - Black v S Freeman & Co (1910) 12 CLR 105 - Bute (Marquess) v Barclays Bank Ltd [1955] 1 QB 202 - Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22, (2007) 236 ALR 209 - Gurtner v Beaton [1993] 2 Lloyd's Rep 369 - Hungerfords v Walker (1989) 171 CLR 125 - Karak Rubber Co Ltd v Burden (No 2) [1972] 1 WLR 602; [1972] 1 All ER 1210 CASES CITED : - Lloyds Bank Ltd v Chartered Bank of India, Australia and China [1929] 1 KB 40 - National Commercial Banking Corporation of Australia Ltd v Batty (1986) 160 CLR 251 - NIML Ltd v MAN Financial Australia Ltd [2006] 15 VR 156 - Penfolds Wines Pty Ltd v Elliott (1946) 74 CLR 204 - Petersen v Moloney (1951) 84 CLR 91 - Sunray Irrigation Services Pty Ltd v Hortulan Pty Ltd (in liq) [1993] 2 VR 40 - Voss v Davidson [2003] QCA 252 - Bowstead & Reynolds on Agency (18th Ed) paras 8-013, 8-014, 8-114