Russell Gould Pty Limited v Ramangkura [2013] NSWSC 1114

Supreme Court New South Wales

Medium Neutral Citation: Russell Gould Pty Limited v Ramangkura [2013] NSWSC 1114 Hearing dates: 02.04.2013, 03.04.2013, 04.04.2013, 05.04.2013, 12.04.2013 Decision date: 15 August 2013 Jurisdiction: Equity Division Before: Lindsay J Decision: Subject to submissions on the precise form of orders to be made: 1. Order that the statement of claim be dismissed. 2. Declare that the defendant is entitled to retain moneys paid to her. 3. Declare that neither the plaintiff nor Mr Gould Senior has an interest in those moneys. 4. An order for costs. Catchwords: EQUITY - Fiduciary duties - Breach - Director and company - Alleged misapplication of company's funds - Whether money paid to defendant by director belonged to plaintiff company - Whether money paid to defendant constituted a misapplication of company funds to actual or constructive knowledge of defendant. EVIDENCE - Proof - Burden or onus - Whether plaintiff able to discharge onus on case alleged - Availability of Presumption of Undue Influence - Rebuttal of presumption. REMEDIES - Declarations - Onus of Proof - Depends on substantive character of contest - Proceedings on cross claim ancillary to principal proceedings. PROCEDURE - Civil - Parties - Standing - Corporation - Internal disputation - Affect on third party claim. CORPORATIONS - Directors - Implied actual authority. Legislation Cited: Corporations Act 2001, s 1224 Uniform Civil Procedure Rules 2005 NSW 14.12 (1)(d) and (f); 36.1 Corporations Act 2001 Cth Civil Procedure Act 2005 NSW, s 90 Corporations Act 2001 (Cth), ss 542, 1305-1306 Cases Cited: Young v Queensland Trustees Limited (1956) 99 CLR 560 at 566-567 Haller v Ayre [2005] 2 Qd R 410 at 418 [19] and 419 [26] - 423 [32]. Hewitt v Gardiner [2009] NSWSC 1107, esp [71] Johnson v Smith [2010] NSWCA 306 Badman v Drake [2008] NSWSC 1366 Richard Brady Franks Limited v Price (1937) 58 CLR 112 Australian Growth Resources Pty Limited v Van Reesema (1988) 13 ACLR 261 Eromanga Hydrocarbons NL v Australis Mining NL (1988) 13 ACLR 804 Clarke v Shee & Johnson (1774) 1 Cowp 197; 98 ER 1041 Banque Belge Pour L'Etranger v Hambrouk [1921] 1 KB 321 Heperu Pty Limited v Belle (2009) 76 NSWLR 230 Jones v Dunkel (1959) 101 CLR 298 Gibbons v Wright (1954) 91 CLR 423 at 437-438 Quek v Beggs (1990) 5 BPR [97405] at 11,764 Courtney v Powell [2012] NSWSC 460 at [38] Heydon v Perpetual Executors Trustees & Agency Co (WA) Limited (1930) 45 CLR 111 at 113 Coshott v Sakic(1998) 44 NSWLR 667 at 671D-E Motor Auction Pty Limited v John Joyce Wholesale Cars Pty Limited (1997) 138 FLR 118 at 132-133 Massoud v NRMA Insurance Limited (1995) 62 NSWLR 657 at 660 Blanch v British American Tobacco Australia Services Limited (2005) 62 NSWLR 653 at 655 [5] - 656 [10] Ainsworth v Criminal Justice Commission (1992) 175 CLR 564 at 581-582), Guaranty Trust Company of New York v Hannay & Company [1915] 2 KB 536 at 572 A Hudson Pty Limited v Legal & General Life of Australia Limited (1985) 1 NSWLR 701 at 712C, 716D-E and 718D Spies v The Queen (2000) 201 CLR 603 at 635 [93] - 637 [99] Currie v Dempsey (1967) 69 SR (NSW) 116 at 125 Johnson v Buttress (1936) 56 CLR 133-135 In Re Everett [1917] SALR 52 at 57-59 Potts v Miller [1940] 64 CLR 282 at 301-305, especially 305 Australian Growth Resources Corporation Pty Ltd (Receivers and Managers Appointed) v Van Reesema (1988) 13 ACLR 261 at 268 Texts Cited: E Bullen and SM Leake, Precedents of Pleadings in Personal Actions in the Superior Courts of Common Law (Stevens & Sons, London, 3rd ed, 1868) at pp 41-42 and 44-50 JH Wigmore, Evidence in Trials at Common Law, Vol 9 [2486] JD Heydon, Cross on Evidence (9th Australian ed, 2013), para [7060] RP Austin, HAJ Ford and IM Ramsay, Company Directors: Principles of Law and Corporate Governance (Lexis Nexis Butterworths, Australia, 2005), paras [7.10] and [10.3] PW Young, Declaratory Orders (Butterworths, Sydney, 2nd ed, 1984), para [606] May, The Law of Fraudulent and Voluntary Conveyances (3rd ed, London, 1908), ch 2, especially at pp 358-359 Category: Principal judgment Parties: Russell Gould Pty Limited (Plaintiff/Second Cross Defendant) V Ramangkura (Defendant/Cross Claimant) RV Gould (First Cross Defendant) Representation: J Hyde Page (Plaintiff/Second Cross Defendant) P O'Loughlin (Defendant/Cross Claimant) BF Katekar (Second Cross Defendant) Swaab Attorneys (Plaintiff/Second Cross Defendant) Coyne Legal (Defendant/Cross Claimant) Marks Griffith Bova Solicitors (Second Cross Defendant) File Number(s): 2011/00280083