Gerard Cassegrain & Co Pty Limited v Cassegrain [2011] NSWSC 1156

Supreme Court New South Wales

Medium Neutral Citation: Gerard Cassegrain & Co Pty Limited v Cassegrain [2011] NSWSC 1156 Hearing dates: 12, 13, 15 April 2011 Decision date: 29 September 2011 Jurisdiction: Equity Division - Corporations List Before: Barrett J Decision: Declaratory relief, injunctive relief and equitable compensation to be awarded against first defendant. Catchwords: CORPORATIONS - management and administration - directors - fiduciary duties of directors - where loan account in director's favour established in company's books - where to director's knowledge there was no entitlement of the director to funds represented by the loan account - drawings by director against loan account - whether breach of fiduciary duty - whether fraudulent breach - CORPORATIONS - informed consent of company to breach of fiduciary duty - where one shareholder given by constitution power to pass any resolution at a general meeting - assent by that shareholder apart from general meeting - whether effective - ESTOPPEL - prior adjudication - where creation of loan account and drawings on it had been the subject of findings in earlier oppression proceedings - whether res judicata - whether issue estoppel - whether existence of issue estoppel precludes reception of further evidence - ESTOPPEL - prior adjudication - effect on non-party - whether non-party privy or agent of party - EVIDENCE - judicial discretion to limit use - relevance of inability to cross-examine because witness not called - REAL PROPERTY - co-ownership - joint tenants - whether fraud of one joint tenant in taking of title jointly affects other joint tenant - where first joint tenant later transferred his interest to second joint tenant - nature of the sole registered proprietor's title under Real Property Act - TORRENS SYSTEM - fraud exception to indefeasibility of registered estates - nature of relevant fraud - EQUITY - equitable defences - laches - elements of defence - LIMITATION OF ACTIONS - proceedings for equitable relief - equity seeks analogy with the law - fraudulent breach of fiduciary duty - analogy with tort of deceit or conspiracy to defraud - no analogy with trusteeship if trust property not held - relevance of incapacity Legislation Cited: Corporate Law Economic Reform Program Act 1999 (Cth) Corporations Act 2001 (Cth), Part 2F.1, ss 232, 237 Evidence Act 1995, ss 69, 91,136 Limitation Act 1969, ss 11, 14, 16, 17, 18, 20, 21, 23, 47, 52 Real Property Act 1900, ss 42, 118(1)(d) Cases Cited: Assets Co Ltd v Mere Roihi [1905] AC 176 Attorney-General v Cockle [1988] Ch 414 Aussie Ideas Pty Ltd v Tunwind Pty Ltd [2006] NSWCA 286 Bahr v Nicolay (No 2) [1988] HCA 16; (1988); 164 CLR 604 Bamford v Bamford [1968] 3 WLR 317 Barnes v Addy (1874) LR 9 Ch App 244 Bell Group Ltd v Westpac Banking Corporation (No 9) [2008] WASC 239; (2008) 39 WAR 1 Big River Timbers Pty Ltd v Stewart (1998) 9 BPR 16,599 Blair v Curran [1939] HCA 23; (1939) 62 CLR 464 Bogdanovic v Koteff (1988) 12 NSWLR 472 Cassegrain v Cassegrain (15 July 1998, unreported, FCA, BC9803240). Cassegrain v Gerard Cassegrain & Co Pty Ltd [2008] NSWSC 976; (2008) 68 ACSR 132 Cohen v Cohen [1929] HCA 15; (1929) 42 CLR 91 Companhia de Seguros Imperio v Heath (REBX) Ltd [2000] EWCA Civ 219; [2001] 1 WLR 112 Coulthard v Disco Mix Club Ltd [2000] 1 WLR 707 Daniels v Anderson (1995) 37 NSWLR 438 Davis v Williams [2003] NSWCA 371; (2003) 11 BPR 21,313 Epeabaka v Minister for Immigration and Multicultural Affairs (1997) 150 ALR 397 Ferrari v Ferrari Investments (Townsville) Pty Ltd [2000] 2 Qd R 359; [1999] QCA 230 Foss v Harbottle (1843) 2 Hare 461; 67 ER 189 Frazer v Walker [1967] 1 AC 569 Freeman v Laing [1899] 2 Ch 355 Gerard Cassegrain & Co Pty Ltd v Commissioner of Taxation [2007] FCA 415; (2007) 66 ATR 198 Gerard Cassegrain & Co Pty Ltd v Commissioner of Taxation [2010] AATA 12; (2010) 78 ATR 328 Gwembe Valley Development Co Ltd v Koshy [2003] EWCA Civ 1048; [2004] 1 BCLC 131 Hawkesbury Development Pty Ltd v Landmark Finance Pty Ltd (1969) 92 WN (NSW) 199 Heggies Bulkhaul Ltd v Global Minerals Australia Pty Ltd [2003] NSWSC 851; (2003) 59 NSWLR 312 Heperu Pty Ltd v Belle [2009] NSWCA 252; (2009) 76 NSWLR 230 Hogg v Cramphorn Ltd [1967] Ch 254 JJ Harrison (Properties) Ltd v Harrison [2001] EWCA Civ 1467; [2002] BCLC 162 Jones v Badley (1868) LR 3 Ch App 362 Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298 Kinsela v Russell Kinsela Pty Ltd (1986) 4 NSWLR 722 Lombardo v Stuart Bros Pty Ltd (1967) 68 SR(NSW) 159 Papakosmas v The Queen [1999] HCA 37; (1999) 196 CLR 297 Paragon Finance PLC v D B Thakerar & Co [1998] EWCA Civ 1249; [1999] 1 All ER 400 Peldan v Anderson [2007] HCA 48; (2006) 227 CLR 471 Ramsay v Pigram [1968] HCA 34; (1968) 118 CLR 271 Re George Newman & Co [1895] 1 Ch 674 Re Gerard Cassegrain & Co Pty Ltd and Commissioner of Taxation [2005] AATA 72 Re Stead; Witham v Andrew [1900] 1 Ch 237 Stuart v Kingston [1923] HCA 17; (1923) 32 CLR 309 Stuart v Kingston; (1924) 34 CLR 394 The Duke Group Ltd v Alamain Investments Ltd [2003] SASC 415 Vigliaroni v CPS Investment Holdings Pty Ltd [2009] VSC 428; (2009) 74 ACSR 282 Wayde v New South Wales Rugby League Ltd (1985) HCA 68; (1985) 180 CLR 459 Williams v Minister, Aboriginal Land Rights Act 1983 (1994) 35 NSWLR 497 Winthrop Investments Ltd v Winns Ltd [1975] 2 NSWLR 666 Texts Cited: R P Austin and I M Ramsay, "Ford's Principles of Corporations Law", para 7.590 Category: Principal judgment Parties: Gerard Cassegrain & Co Pty Limited - Plaintiff Claude Cassegrain - First Defendant Felicity Cassegrain - Second Defendant Representation: Mr B W Walker SC/Mr G B Colyer - Plaintiff Mr G C Lindsay SC/Mr P G Bolster - First Defendant Mr F Gleeson SC/Ms P J Gormly - Second Defendant McCabe Terrill Lawyers - Plaintiff Oliveri Lawyers - First Defendant Peter Condon & Associates - Second Defendant File Number(s): 2008/280507