Calvo v Sweeney [2009] NSWSC 719

New South Wales Supreme Court

CITATION : Calvo v Sweeney [2009] NSWSC 719

HEARING DATE(S) : 09-13 February 2009; 16-18 February 2009

JUDGMENT DATE : 29 July 2009

JURISDICTION : Equity

JUDGMENT OF : White J

DECISION : Refer to para 275 of judgment.

CATCHWORDS : EQUITY - general principles - fiduciary obligations – defendant retained as plaintiffs' adviser to find purchasers for plaintiffs' shares or to raise capital for company to repay plaintiffs' loan – defendant obtained control of company and procured the issue of a substantial shareholding to himself for no consideration - dependence and vulnerability to exercise of influence – relationship of confidence - conflict between interest and duty – appropriateness of enquiry into fairness of transaction – undue influence - no presumption of undue influence – actual influence - EQUITY – equitable remedies – constructive trusts - EQUITY – equitable defences – acquiescence and laches - EQUITY – equitable relief – whether equitable relief should be conditional on making of just allowance for time spent on company's affairs or donations to company

Fair Trading Act 1987 (NSW) LEGISLATION CITED : Income Tax Assessment Act 1936 (Cth) Higher Education Act 2001 (NSW) Higher Education Support Act 2003 (Cth)

CATEGORY : Principal judgment

Gould v Vaggelas [1985] HCA 75; (1985) 157 CLR 215 Commercial Bank of Australia Ltd v Amadio [1983] HCA 14; (1983) 151 CLR 447 Hospital Products Ltd v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 Breen v Williams [1996] HCA 57; (1996) 186 CLR 71 Bristol & West Building Society v Mothew [1998] Ch 1 Chan v Zacharia (1984) 154 CLR 178 Brunninghausen v Glavanics [1999] NSWCA 199; (1999) 46 NSWLR 538 Coleman v Myers [1977] 2 NZLR 225 Tate v Williamson (1866) LR2ChApp 55 Hadid v Lenfest Communications Inc [1999] FCA 1798 Australian Securities & Investments Commission v Citigroup Global Markets Australia Pty Ltd [2007] FCA 963; (2007) 160 FCR 35 Daly v Sydney Stock Exchange Ltd [1986] HCA 25; (1986) 160 CLR 371 McEvilly v Manenti Quinlan & Associates Pty Ltd (Supreme Court of New South Wales, Einstein J, 10 August 1998, unreported) Holder v Holder [1968] Ch 353 CASES CITED : Re One.Tel Networks Holdings Pty Ltd [2001] NSWSC 1065; 40 ACSR 83 Aberdeen Railway Co v Blaikie Bros [1843-60] All ER Rep 249 McPherson v Watt (1877) 3 App Cas 254 Daly v Sydney Stock Exchange (1986) 160 CLR 371 Clay v Clay [2001] HCA 9; (2001) 202 CLR 410 In re Thompson's Settlement [1986] Ch 99 People's Prudential Assurance Co Ltd v Australian Federal Life and General Assurance Co Ltd (1935) 35 SR (NSW) 253 Chellew v Excell [2009] 1 NZLR 711 Johnson v Buttress (1936) 56 CLR 113 Orr v Ford [1989] HCA 4; (1989) 167 CLR 316 Lindsay Petroleum Company v Hurd (1873-74) LR 5 PC 221 Clegg v Edmondson (1857) 8 De GM & G 787 Re Jarvis (decd); Edge v Jarvis [1958] 2 All ER 336 Warman International Ltd v Dwyer [1995] HCA 18; (1995) 182 CLR 544 Phipps v Boardman [1965] Ch 992 Green & Clara Pty Ltd v Bestobell Industries Pty Ltd (No. 2) [1984] WAR 32 Harris v Digital Pulse Pty Ltd [2003] NSWCA 10; (2003) 56 NSWLR 298