Edwards v Australian Securities and Investments Commission [2009] NSWCA 424

Reported Decision: 235 FLR20776 ACSR 369

New South Wales Court of Appeal

CITATION: Edwards v Australian Securities and Investments Commission [2009] NSWCA 424

HEARING DATE(S): 28, 29 and 30 October 2009

JUDGMENT DATE: 22 December 2009

JUDGMENT OF: Spigelman CJ at 1; Campbell JA at 2; Macfarlan JA at 7

DECISION: (1) The orders made on 28 October 2009 for separate determination of issues are rescinded. (2) The appeal is dismissed with costs.

CATCHWORDS: CORPORATIONS - insolvent trading - directors' liability - whether quantum meruit liabilities are debts for the purposes of s 588G Corporations Act 2001 (Cth) - whether director aware of debts being incurred - challenges to disqualification order - CONTRACTS - whether preliminary building contract entered into after commencement of work and prior to execution of formal contract documents - RESTITUTION - building work commenced at request of developer prior to entry into building contract

Companies Act 1961 (Cth) LEGISLATION CITED: Corporations Act 2001 (Cth) District Court Act 1912

CATEGORY: Principal judgment

Bank of Australasia v Hall [1907] HCA 78; (1907) 4 CLR 1514 Box Valley Pty Ltd v Kidd [2006] NSWCA 26; (2006) 24 ACLC 471 Crisp & Gunn Co-operative Ltd v Hobart Corporation [1963] HCA 55; (1963) 110 CLR 538 Evans & Deakin Pty Ltd v Sebel Furniture Ltd [2003] FCA 171 Fox v Percy [2003] HCA 22; (2003) 214 CLR 118 Hawkins v Bank of China (1992) 26 NSWLR 562 Lagos v Grunwaldt [1910] 1 KB 41 Lumbers v W Cook Builders Pty Ltd (in liq) [2008] HCA 27; (2008) 232 CLR 635 Masters v Cameron [1954] HCA 72; (1954) 91 CLR 353 New Cap Reinsurance Corporation Ltd (in liq) v A E Grant [2008] NSWSC 1015; (2008) ACSR 176 CASES CITED: Pavey & Matthews Pty Ltd v Paul [1987] HCA 5; (1987) 162 CLR 221 Re HIH Insurance Ltd; Australian Securities and Investments Commission v Adler [2002] NSWSC 483; (2002) 42 ACSR 80 Rich v Australian Securities and Investments Commission [2004] HCA 42; (2004) 220 CLR 129 Sinclair Scott & Co Ltd v Naughton [1929] HCA 34; (1929) 43 CLR 310 Spain v The Union Steamship Company of New Zealand Ltd [1923] HCA 21; (1923) 32 CLR 138 Segur v Franklin (1934) 34 SR (NSW) 67 Suttor v Gundowda [1950] HCA 35; (1950) 81 CLR 418 Trollope & Colls Ltd v Atomic Power Constructions Ltd [1962] 3 All ER 1035 Victorian WorkCover Authority v Esso Australia Ltd [2001] HCA 53; (2001) 207 CLR 520 Way v Latilla [1937] 3 All ER 759 Wickstead v Browne (1992) 30 NSWLR 1 Young v Queensland Trustees Ltd [1956] HCA 51; (1956) 99 CLR 560