Visnic v Sywak [2009] NSWCA 173

New South Wales Court of Appeal

CITATION: Visnic v Sywak [2009] NSWCA 173

HEARING DATE(S): 14 May 2009

JUDGMENT DATE: 1 July 2009

JUDGMENT OF: Spigelman CJ at 1; Campbell JA at 47; Macfarlan JA at 50

DECISION: Appeal dismissed with costs.

CATCHWORDS: CORPORATIONS – distinction between company and shareholders – limitations on shareholders' rights to enforce duties owed to company - EQUITY – equitable remedies – accounts and inquiries – sufficient connection – scope of breach of fiduciary duty – inquiry to determine equitable damages and/or account of profits by reason of breaches of fiduciary duty – whether sufficient connection between breach of fiduciary duty and inquiry for purposes of determining account of profits – whether breach was a conflict of interest and duty – deprivation of shareholding – evidence of benefits and profits – distinction between trust and fiduciary relationship - EQUITY - equitable remedies - accounts and inquiries - whether trial judge took into account irrelevant considerations - fiduciary's conduct capable of constituting breach of duties owed to companies - EQUITY – equitable remedies – election between equitable compensation and disgorgement damages - WORDS AND PHRASES – "sufficient connection"

LEGISLATION CITED: Corporations Act 2001 (Cth) Uniform Civil Procedure Rules 2005

Agricultural and Rural Finance Pty Ltd v Gardiner [2008] HCA 57; (2008) 83 ALJR 196 Canson Enterprises Ltd v Boughton & Co [1991] 3 SCR 534 Chan v Zacharia (1983–1984) 154 CLR 178 Friend v Brooker [2009] HCA 21; (2009) 255 ALR 601 Hill v Rose [1990] VR 129 Hunter Area Health Service v Presland [2005] NSWCA 33; (2005) 63 NSWLR 22 In re Coomber; Coomber v Coomber [1911] 1 Ch 723 CASES CITED: Keech v Sandford (1726) Sel Cas T King 61; 25 ER 223 Lumbers v W Cook Builders Pty Ltd (in liquidation) [2008] HCA 27; (2008) 232 CLR 635 Maguire v Makaronis (1996–1997) 188 CLR 449 New South Wales v Paige [2002] NSWCA 235; (2002) 60 NSWLR 371 Personal Representatives of Tang Man Sit v Capacious Investments Ltd [1996] AC 514 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 Re Dawson (deceased); Union Fidelity Trustee Co Ltd v Perpetual Trustee Co Ltd [1966] 2 NSWR 211 Sullivan v Moody [2001] HCA 59; (2001) 207 CLR 562 Warman International Limited v Dwyer (1994–1995) 182 CLR 544