Equity 8 Pty Limited v Shaw Stockbroking Limited [2007] NSWSC 413

New South Wales Supreme Court

CITATION : Equity 8 Pty Limited v Shaw Stockbroking Limited [2007] NSWSC 413

HEARING DATE(S) : 20/11/06, 21/11/06, 22/11/06, 23/11/06, 24/11/06

JUDGMENT DATE : 2 May 2007

JURISDICTION : Equity Division

JUDGMENT OF : Barrett J

DECISION : Declaration to be made that agreement of July 2002 validly and lawfully terminated by defendant (Shaw). Damages to be paid to defendant/cross-claimant (Shaw) by plaintiff/cross-defendant (Equity 8). Equitable compensation to be rendered by certain other cross-defendants (Wookey and Cartesian Capital).

CATCHWORDS : CONTRACTS - implied terms - where one company contracts with another to provide services of its employees - terms to be implied having regard to express terms and surrounding context - whether implied term justified termination for misconduct - CORPORATIONS - officers - paragraph (b)(ii) of "officer" definition - key risk management role carrying responsibility for preparation and delivery of budget - whether statutory duties breached - EQUITY - fiduciary duties - whether owed by person in key risk management role - whether fiduciary duty breached - CONTRACTS - breach of contract - various claims for damages - TRADE AND COMMERCE - misleading and deceptive conduct

LEGISLATION CITED : Corporations Act 2001 (Cth), Division 1 of Part 2D.1, ss.9, 180(1), 181(1), 182(1) Trade Practices Act 1975. s.52(1)

Blyth Chemicals Ltd v Bushnell (1933) 49 CLR 66 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Canadian Aero Services Ltd v O'Malley (1973) 40 DLR (3d) 371 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Faccenda Chicken Ltd v Fowler [1987] Ch 117 Hospital Products Ltd v United States Surgical Corp (1984) 156 CLR 41 Minlabs Pty Ltd v Assaycorp Pty Ltd (2001) 37 ACSR 509 Narni Pty Ltd v National Australia Bank Ltd [2001] VSCA 31 CASES CITED : Re Morvah Consolo Tin Mining Co (1875) 2 ChD 1 Roxborough v Rothmans of Pall Mall Australia Pty Ltd (2001) 208 CLR 516 Russell v Trustees of the Roman Catholic Church for the Archdiocese of Sydney [2007] NSWSC 104 Secured Income Real Estate (Australia) Ltd v St Martins Investments Pty Ltd (1979) 144 CLR 596 Smith v French [2000] VSC 381 State Bank of New South Wales Ltd v Currabubula Holdings Pty Ltd [2001] NSWCA 47 Uszok v Henley Properties (NSW) Pty Ltd [2007] NSWCA 31 Warman International Ltd v Dwyer (1995) 182 CLR 544 Wessex Dairies Ltd v Smith [1935] 2 KB 80