Craigcare Group Pty Ltd v Superkite Pty Ltd [2014] NSWSC 326

Supreme Court New South Wales

Medium Neutral Citation: Craigcare Group Pty Ltd v Superkite Pty Ltd [2014] NSWSC 326 Hearing dates: 24, 25, 27 February 2014 Decision date: 26 March 2014 Jurisdiction: Equity Division Before: Hallen J Decision: Direct the parties to provide, within 14 days, short minutes of order that reflect the conclusions reached as to the amount to be paid to the Plaintiff by the first Defendant, including interest, and costs. If agreement is reached on the form of orders, the orders will be made and entered in Chambers. Otherwise, the matter will be listed for further argument on a date to be agreed. Catchwords: CONTRACT - whether contract between Plaintiff and first Defendant - Contract established between Plaintiff and first Defendant as to money paid and the terms upon which it was paid to trust account

EQUITY - TRUSTS - whether money paid into firm of solicitors' trust account was held on trust for Plaintiff as it was only to be used for prescribed purposes - whether trust was breached by payment out for purposes other than prescribed purposes - whether Plaintiff entitled to equitable compensation - whether second Defendant liable as an accessory to breach of express trust or breach of Quistclose trust under the second limb of Barnes v Addy - consideration of Quistclose trust - Express trust in favour of Plaintiff - breach of trust established - Whether Plaintiff entitled to "equitable damages" - Second Defendant is not liable for knowing assistance in breach of trust

COSTS - Whether to cap costs in view of amount of the claim - Plaintiff to recover 65% of its costs, such costs to be calculated on the ordinary basis - Second Defendant to pay his own costs of proceedings Legislation Cited: Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) Cases Cited: Amaltal Corporation Ltd v Maruha Corporation [2007] NZSC 40; [2007] 3 NZLR 192 Aon Risk Services Australia Ltd v Australian National University [2009] HCA 27; (2009) 239 CLR 175 Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) [1978] HCA 45; (1978) 141 CLR 335 Australian Elizabethan Theatre Trust, Re; Lord v Commonwealth Bank of Australia (1991) 30 FCR 491 Australian Securities and Investments Commission v Hellicar [2012] HCA 17; (2012) 247 CLR 345 Baffico v YMCA of Great Lakes Inc [2014] NSWCA 61 Barclays Bank Ltd v Quistclose Investments Ltd [1968] UKHL 4; [1970] AC 567 Barnes v Addy (1874) 9 Ch App 244 Baulkham Hills Private Hospital Pty Ltd v GR Securities Pty Ltd (1986) 40 NSWLR 622 Baychek v Baychek [2010] NSWSC 987 Bibby Financial Services Australia Pty Ltd v Sharma [2014] NSWCA 37 BigTinCan Pty Ltd v Ramsay [2013] NSWSC 1248 BP Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 180 CLR 266 Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; (2001) 117 FCR 424 Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336 Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410 Caroona Coal Action Group Inc v Coal Mines Australia Pty Limited and Minister for Mineral Resources [2009] NSWLEC 165 Chandler v Water Corporation [2001] WASC 166 Chapman v Taylor [2005] NSWCA 95 Codelfa Construction Pty Ltd v State Rail Authority (NSW) [1982] HCA 24; (1982) 149 CLR 337 Compass Resources Ltd v Sherman [2010] WASC 41; (2010) 42 WAR 1 Dare v Pulham [1982] HCA 70; (1982) 148 CLR 658 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; (2007) 230 CLR 89 George v Webb [2011] NSWSC 1608 Hendriks v McGeoch [2008] NSWCA 53 Hospital Products Ltd v United States Surgical Corporation [1984] HCA 64; (1984) 156 CLR 41 Howards Storage World Pty Ltd v Haviv Holdings Pty Ltd [2010] FCAFC 5; (2010) 182 FCR 84 Kauter v Hilton [1953] HCA 95; (1953) 90 CLR 86 Kelly v Mina [2014] NSWCA 9 Kinsela v Caldwell [1975] HCA 10; (1975) 132 CLR 458 Laidlaw v Hillier Hewitt Elsley Pty Ltd [2009] NSWCA 44 Legal Services Board v Gillespie-Jones [2012] VSCA 68 Mamo v Surace [2014] NSWCA 58 Manly Council v Byrne [2004] NSWCA 123 McManus RE Pty Ltd v Ward [2009] NSWSC 440; (2009) 74 NSWLR 662 Mario Salvo v New Tel Ltd [2005] NSWCA 281 Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd [1992] HCA 66; (1992) 110 ALR 449 OneSteel Manufacturing Pty Ltd v United KG Pty Ltd [2006] SASC 119; (2006) 94 SASR 376 Pilmer v The Duke Group Ltd (In Liq) [2001] HCA 31; (2001) 207 CLR 165 Raulfs v Fishy Bite Pty Ltd; Fishy Bite Pty Ltd v Raulfs [2012] NSWCA 135 Rejfek v McElroy [1965] HCA 46; (1965) 112 CLR 517 State Bank of NSW v Brown [2001] NSWCA 223; (2001) 38 ACSR 715 Walker v Corboy (1990) 19 NSWLR 382 Ying v Song [2010] NSWSC 1500 Zhong v Wang [2006] NZCA 242; (2006) 5 NZ ConvC 194,308 Texts Cited: P W Young, C Croft and M Smith, On Equity (2009, Thomson Reuters) W Swaddling (ed), The Quistclose Trust: Critical Essays (2004, Hart Publishing) Category: Principal judgment Parties: Craigcare Group Pty Ltd (Plaintiff) Superkite Pty Ltd (first Defendant) Alfred John Stammers (second Defendant) Representation: Counsel: Mr G A Sirtes SC; Mr D W Robertson (Plaintiff) Ms T R Gordon (Defendants) Solicitors: Curwoods Lawyers (Plaintiff) Colin Biggers & Paisley (Defendants) File Number(s): 2012/376897