Gudmundsen v Carrington [2012] NSWSC 147

Supreme Court New South Wales

Medium Neutral Citation: Gudmundsen v Carrington [2012] NSWSC 147 Hearing dates: 2 February 2012 - 3 February 2012 Decision date: 28 February 2012 Jurisdiction: Equity Division Before: Stevenson J Decision: Dr Gudmundsen is entitled to equitable compensation from Ms Carrington in relation to the funds she transferred from the Business Account to her accounts between 2 July 2008 and 8 August 2011 with exceptions. Catchwords: EQUITY - equitable compensation - misappropriation of funds - employer and employee - unauthorised payments - whether misappropriated funds used by employee for benefit of employer Legislation Cited: Evidence Act 1995 Cases Cited: Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd and Others (1992) 67 ALJR 170, Sutherland Shire Council v Dietz [2004] NSWCA 53, De Gioia v Darling Island Stevedoring & Lighterage Co Ltd [1941] 42 SR (NSW), Breen v Williams (1995) 186 CLR 71 Texts Cited: Young, Croft, Smith On Equity (Lawbook Co 2009) Category: Principal judgment Parties: Dr Ken Joseph Gudmundsen T/A Lismore Skin Clinic (Plaintiff) Nina Carrington (Defendant - no appearance) Representation: Mr Julian O'Sullivan (Plaintiff) Streeterlaw (Plaintiff) File Number(s): 2011/382554

Judgment 1The plaintiff, Dr Ken Gudmundsen, is a dermatologist and operates a specialist medical practice under the name "Lismore Skin Clinic" ("the Clinic") at 186 Molesworth Street, Lismore. 2In early 2006, Dr Gudmundsen engaged the defendant, Ms Nina Carrington, as his bookkeeper at the Clinic. 3In January 2008, Dr Gudmundsen appointed Ms Carrington as his practice manager on a full time 5 day a week basis. 4In the proceedings, Dr Gudmundsen claims that Ms Carrington has misappropriated from him some $490,000.00 and seeks equitable compensation in that amount.