HP Mercantile Pty Ltd v Dierickx & Ors [2012] NSWSC 1005

Supreme Court New South Wales

Medium Neutral Citation: HP Mercantile Pty Ltd v Dierickx & Ors [2012] NSWSC 1005 Hearing dates: 7-9 & 12-15 December 2011 Decision date: 31 August 2012 Jurisdiction: Equity Division Before: White J Decision: 1.Direct entry of judgment for the defendants. 2.Order that the cross-claim be dismissed. Catchwords: CONTRACT - plaintiff suing as assignee of loan debt - whether debt purportedly assigned - whether assignments valid - whether debtors could assert that assignment was in fraud of creditors - original creditor estopped from denying validity of first assignment - plaintiff entitled to benefit of estoppel - limitation periods if initial assignments invalid - whether amendments relying on later assignments pleaded new causes of action - when amendments took effect

TRADE PRACTICES - misleading and deceptive conduct - whether defendants induced to invest on understanding that liability was limited to initial investment - defendants' conduct inconsistent with belief that loan was without recourse

TRADE PRACTICES - misleading and deceptive conduct - whether defendants induced to make investment by representations regarding funds available to promoter to carry out scheme - promoter's failure to provide information - where obligation of promoter to disclose all matters that might materially affect investor's decision - failure to disclose funding arrangements for the making of loans to investors - misrepresentation of moneys available to promoter to carry out scheme - whether non-disclosure and misrepresentation by original creditor a defence to action by assignee of debt - where time limit for claim under s 87(1A) of the Trade Practices Act 1974 has expired - whether debtor can seek avoidance of contract of loan as defence to action for debt - Trade Practices Act 1974 (Cth), s 52 Legislation Cited: Trade Practices Act 1974 (Cth) Corporations Law Conveyancing Act 1919 Stamp Duties Act 1920 Limitation Act 1969 Civil Procedure Act 2005 Cases Cited: Thomas v HP Mercantile Pty Ltd [2008] NSWCA 308 HP Mercantile Pty Ltd v Meakes (District Court of New South Wales, 24 June 2004, unreported) Tailby v Official Receiver (1888) 13 App Cas 523 Amalgamated Investment and Property Co Ltd (in liq) v Texas Commerce International Bank Ltd [1982] QB 84 Coghlan v S H Locke (Australia) Ltd (1985) 4 NSWLR 158 Commonwealth v Verwayen [1990] HCA 39; (1990) 170 CLR 394 Ramsay v Pigram [1968] HCA 34; (1968) 118 CLR 271 Brady v Stapleton [1952] HCA 62; (1952) 88 CLR 322 Chen v Marcolongo; Chan v Lym International Pty Ltd [2009] NSWCA 326 Marcolongo v Chen [2011] HCA 3; (2011) 242 CLR 546 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Read v Brown (1888) 22 QBD 128 New Cap Reinsurance Corporation v Reaseguros Allianza SA [2004] NSWSC 787; (2004) 186 FLR 175 Stone v ACE-IRM Insurance Broking Pty Ltd [2003] QCA 218; [2004] 1 Qd R 173 Weldon v Neal (1887) 19 QBD 394 Hewitt v Gardner [2009] NSWSC 705 Watson v Foxman (1995) 49 NSWLR 315 Butcher v Lachlan Elder Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592 Fitzwood Pty Ltd v Unique Goal Pty Ltd (in liq) [2001] FCA 1628; (2001) 188 ALR 566 S E Vineyard Finance Pty Ltd (receivers and managers appointed) v Casey [2011] VSC 403 Re Harry Simpson & Co Ltd v Companies Act 1936 (1963) 81 WN (Part 1) (NSW) 207 Roxburghe v Cox (1881) LR 17 Ch D 520 Mitchell v Purnell Motors (1960) 78 WN (NSW) 26 Re Partnership Pacific Securities [1994] 1 QdR 410 Government of Newfoundland v Newfoundland Railway Co (1888) 13 App Cas 199 Duke Group (in liq) v Alamain Investments Limited [2003] SASC 415 Barker v Duke Group Limited (in liq) [2005] SASC 81; (2005) 91 SASR 167 Hewitt v Henderson [2006] WASCA 233 Brightwell & Ors v R F B Holdings Pty Ltd [2003] NSWSC 7; (2003) 44 ACSR 186 Short v Crawley (No. 30) [2007] NSWSC 1322 Rawson v Samuel (1841) CR & PH 161; 41 ER 451 Bitannia Pty Ltd v Parkline Constructions Pty Ltd [2006] NSWCA 238; (2006) 67 NSWLR 9 Bank of New Zealand v Spedley Securities Limited (in liq) (1992) 27 NSWLR 91 Australian Mutual Provident Society v Specialist Funding Consultants Pty Ltd (1991) 24 NSWLR 326 Westpac Banking Corp v Eltran Pty Ltd (1987) 14 FCR 541 Carlton and United Breweries Limited v Castlemaine Tooheys Limited [1986] HCA 38; (1986) 161 CLR 543 Oraka Pty Ltd v Leda Holdings Pty Ltd [1997] FCA 297; [1998] ANZ Conv R 577 Prosperity Group International Pty Ltd v Queensland Communication Company Pty Ltd (No. 3) [2011] FCA 1122 Krambousanos v Jedda Investments Pty Ltd [1996] FCA 144; (1996) 64 FCR 348 O'Dea v Allstates Leasing System (WA) Pty Ltd [1983] HCA 3; (1983) 152 CLR 359 Acron Pacific Limited v Offshore Oil NL [1985] HCA 63; (1985) 157 CLR 514 Wallingford v Mutual Society (1880) 5 App Cas 685 C J Belmore Pty Ltd v AGC (General Finance) Limited [1976] 1 NSWLR 507 King Investment Solutions Pty Ltd v Hussain [2005] NSWSC 1076; (2005) 64 NSWLR 441 Kowalczuk v Accom Finance Pty Ltd [2008] NSWCA 343; (2008) 77 NSWLR 205 Texts Cited: R P Meagher, J D Heydon & M J Leeming, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies, 4th ed (2002) LexisNexis Butterworths Category: Principal judgment Parties: HP Mercantile Pty Ltd (Plaintiff) Ludo Victor Dierickx (1st Defendant) Wendy Anne Dierickx (2nd Defendant) Tumut River Orchard Management Limited (In Liquidation) (3rd Defendant) Representation: Counsel: D Fagan SC with P Knowles (Plaintiff) L V Gyles SC (Defendants) Solicitors: Versace McKenzie Lawyers (Plaintiff) Piper Alderman (1st & 2nd Defendants) Crouch Amirbeaggi (3rd Defendant) File Number(s): 2006/294773