Adam Shepard in his capacity as Registered Trustee of the bankrupt estate of Dr Neil Gordon Stuart Wallman v Paul Mladenis & Ors [2011] NSWSC 1431

Supreme Court New South Wales

Medium Neutral Citation: Adam Shepard in his capacity as Registered Trustee of the bankrupt estate of Dr Neil Gordon Stuart Wallman v Paul Mladenis & Ors [2011] NSWSC 1431 Hearing dates: 27 October and 3, 14,15 November 2011 Decision date: 25 November 2011 Jurisdiction: Equity Division Before: Pembroke J Decision: See paragraphs [68] - [69] Catchwords: RESTITUTION - monies had and received - need for defendant to exercise control over payment TRUSTS - monies paid to defendants for purpose - purpose failed - Quistclose trust in favour of plaintiff TRUSTS - breach of trust - accessory liability - defendant director of company that received monies fraudulently obtained - sufficient knowledge to satisfy first limb of Barnes v Addy TORTS - deceit - false and dishonest representations intended to be relied on to the detriment of plaintiff - plaintiff entitled to damages - contributory negligence no defence Cases Cited: Australasian Conference Association Limited v Mainline Constructions Proprietary Limited (in liquidation) (1978) 141 CLR 335 Australian Receivables Ltd v Tekitu Pty Ltd [2011] NSWSC 1306 Barclays Bank Ltd v Quistclose Investments Ltd [1970] AC 567 Black v S Freedman & Company (1910) 12 CLR 105 Briginshaw v Briginshaw (1938) 60 CLR 336 Cashflow Finance v WestpacCOD Factors [1999] NSWSC 671 Farah Constructions Pty Ltd v Say-Dee Pty Limited (2007) 230 CLR 89 Foskett v McKeown [2000] UKHL 29 Henville v Walker (2001) 206 CLR 459 Heperu Pty Ltd v Belle (2009) 76 NSWLR 230 Houston v Donovan (1902) 28 VLR 418 Lazarus Estates Ltd v Beasley [1956] 1 QB 702 Master v Miller (1791) 1 Smith's LC 780 Re Elizabethan Theatre Trust (1991) 30 FCR 491 Re Oatway [1903] 2 Ch 356 Roxborough v Rothmans of Pall Mall Australia Limited (2001) 208 CLR 516 Royal Bank of Canada v The King [1913] AC 283 Scott v Scott (1963) 109 CLR 649 Standard Chartered Bank v Pakistan National Shipping Corpn (Nos 2 and 4) [2003] 1 AC 959 Walker v Corboy (1990) 19 NSWLR 382 Watson v Foxman (1995) 49 NSWLR 315 Ying v Song [2010] NSWSC 1500 Category: Principal judgment Parties: Adam Shepard in his capacity as Registered Trustee of the bankrupt estate of Dr Neil Gordon Stuart Wallman - plaintiff Paul Mladenis - first defendant Snezanna Mladenis - second defendant Hearts United International Consulting Services Pty Limited - third defendant Representation: Counsel: D R Stack - for the plaintiff J D Catlin - for the first, second and third defendants Solicitors: Thomsons Lawyers - for the plaintiff Tanya Cirkovic & Associates - for the first, second and third defendants File Number(s): 2011/00287285