Gerace v Auzhair Supplies Pty Ltd [2014] NSWCA 181

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Gerace v Auzhair Supplies Pty Ltd [2014] NSWCA 181 Hearing dates: 14 November 2013 Decision date: 06 June 2014 Before: Beazley P at [1]; Meagher JA at [2]; Emmett JA at [81] Decision: (1) Grant leave to the appellants under s 471B of the Corporations Act to proceed against the first respondent in liquidation.

(2) Appeal allowed.

(3) Orders 4, 5 and 8 made on 4 March 2013 be set aside.

(4) The first respondent pay the appellants' costs of the appeal.

(5) The first respondent pay the appellants' costs incurred since 19 November 2010 in proceedings 2010/17300 except in so far as any remaining costs order provides otherwise.

(6) The first respondent pay the appellants' costs incurred in proceedings 2012/80701. Catchwords: LIMITATION OF ACTIONS - equitable claims - claim brought by company in liquidation against its directors for breaches of equitable duties in transferring away company's assets and business undertaking - six year limitation period under s 1317K of Corporations Act (Cth) applying to claim for contravention of equivalent statutory duties - principles by reference to which equity applies statutory limitation period by analogy - whether does so as part of the law of laches so that if delay during limitation period would not constitute laches equity would not apply statute by analogy or by inquiring if there are special circumstances such as concealed fraud that would make it unconscionable for the defendant to rely on the statute Legislation Cited: Common Law Procedure Act 1854 (UK) Corporations Act 2001 (Cth), ss 180, 181, 182, 183, 601A, 1317 Crown Suits Act 1898 (WA), s 33 Limitation Act 1623 (UK), s 3 Limitation Act 1939 (UK), s 25(c) Limitation Act 1969 (NSW), ss 36, 52, 55, 56, 60G Limitation Act 1980 (UK), s 36 Mercantile Law Amendment Act 1856 (UK) Real Property Limitation Act 1833 (UK), ss 24, 26 Supreme Court of Judicature Act 1873 (UK) Cases Cited: Agricultural Land Management Ltd v Jackson (No 2) [2014] WASC 102 Applegate v Moss [1971] 1 QB 406 Archbold v Scully (1861) 9 HL Cas 360 Attorney-General for Hong Kong v Reid [1994] 1 AC 324 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63; 208 CLR 199 Australian Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd [2003] HCA 18; 214 CLR 51 Barker v Duke Group Ltd (In liq) (2005) 91 SASR 167 Bartlett v Barclays Bank Trust Co Ltd (No 1) [1980] Ch 515 Beaman v A.R.T.S. Ltd [1949] 1 KB 550 Betjemann v Betjemann [1895] 2 Ch 474 Booth v Earl of Warrington (1714) 4 Bro PC 163 Brightwell v RFB Holdings Pty Ltd [2003] NSWSC 7; 44 ACSR 186 Brisbane South Regional Health Authority v Taylor [1996] HCA 25; 186 CLR 541 Brooksbank v Smith (1836) 2 Y & C Ex 58 Bulli Coal Mining Company v Osborne [1899] AC 351 Candibon Pty Ltd v Minister for Planning [2011] VSC 415; 183 LGERA 10 Cassegrain v Gerard Cassegrain & Co Pty Ltd [2013] NSWCA 454 Cassis v Kalfus [2001] NSWCA 460 Chesterfield v Jansen (1750) 2 Ves Sen 125 Cholmondely v Clinton (1821) 4 Bli 1 Cia de Seguros Imperio v Heath (REBX) Ltd [2001] 1 WLR 112 Cohen v Cohen [1929] HCA 15; 42 CLR 91 Coulthard v Disco Mix Club Ltd [2000] 1 WLR 707 Crawley v Short [2009] NSWCA 410 Denys v Shuckburgh (1840) 4 Y & C Ex 42 Deputy Commissioner of Taxation v Australian Securities Investment Commission [2011] FCA 524 Erlanger v The New Sombrero Phosphate Co (1878) 3 App Cas 1218 Gerard Cassegrain & Co Pty Ltd v Cassegrain [2011] NSWSC 1156 Gibbs v Guild (1882) 9 QBD 59 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; 200 FCR 296 Hewitt v Henderson [2006] WASCA 233 Hovenden v Lord Annesley (1806) 2 Sch & Lef 607 How v Earl Winterton (1896) 2 Ch 626 Hunter v Gibbons (1856) 1 H&N 459 Imperial Gas Light & Coke Co v London Gas Light Co (1854) 10 Ex 39 In re Baker (1881) 20 Ch D 230 In re Greaves (1881) 18 Ch D 551 In re Hampshire Land Company [1896] 2 Ch 743 In re Pauling's Settlement Trusts [1962] 1 WLR 86; on appeal [1964] 1 Ch 303 In re Robinson [1911] 1 Ch 502 In the matter of Auzhair Supplies Pty Ltd (a deregistered company) and Auzhair 1 Pty Ltd [2010] NSWSC 1339 JC Houghton & Co v Nothard, Lowe & Wills Ltd [1928] AC 1 King v Victor Parsons & Co [1973] 1 WLR 29 Kitchen v Royal Air Force Association [1958] 1 WLR 563 KM v HM (1993) 96 DLR (4th) 289 Knox v Gye (1872) 5 LR HL 656 Lindsay Petroleum Co v Hurd (1874) LR 5 PC 221 Lockey v Lockey (1719) Prec Ch 518 McLeod v The Queen [2003] HCA 24; 214 CLR 230 Metacel Pty Ltd v Ralph Symonds Ltd [1969] 2 NSWR 201 Motor Terms Co Pty Ltd v Liberty Insurance Ltd [1967] HCA 9; 116 CLR 177 Orr v Ford [1989] HCA 4; 167 CLR 316 P&O Nedlloyd BV v Arab Metals Co (No 2) [2007] 1 WLR 2288 Paragon Finance PLC v DB Thakerar & Co [1999] 1 All ER 400 Phillips-Higgins v Harper [1954] 1 QB 411 R v McNeil [1922] HCA 33; 31 CLR 76 Ramsden v Dyson (1866) LR 1 HL 129 Rochdale Canal Company v King (1851) 2 Sim (NS) 78 Rolfe v Gregory (1864) 4 De GJ&S 575 Savage v Lunn [1998] NSWCA 203 Savage v Lunn [1998] NSWCA 204 Seymour v Seymour (1996) 40 NSWLR 358 Sheldon v RHM Outhwaite Ltd [1996] 1 AC 102 Short v Crawley (No 30) [2007] NSWSC 1322 Smith v Clay (1767) 3 Bro CC 646; 29 ER 743 Sterndale v Hankinson (1827) 1 Sim 393 The Commonwealth v Cornwell [2007] HCA 16; 229 CLR 519 The Duke Group Ltd (In liq) v Alamain Investments Ltd [2003] SASC 415 The Metropolitan Bank v Heiron (1880) 5 LR Ex D 319 The Salvation Army (South Australia Property Trust) v Rundle [2008] NSWCA 347 Trotter v Maclean (1879) 13 Ch D 574 Williams v Central Bank of Nigeria [2014] UK SC 10 Williams v Minister, Aboriginal Land Rights Act 1983 (1994) 35 NSWLR 497 Young v Waterways Authority of NSW [2002] NSWSC 612 Texts Cited: JW Brunyate, Limitation of Actions in Equity, (1932, Stevens & Sons) W Grigsby, Story's Commentaries on Equity Jurisprudence, (First English Edition 1884, Stevens and Haynes) Halsbury's Laws of England, (3rd ed), vol 14 Halsbury's Laws of England, (4th ed), vol 16(2), reissue John M Lightwood, The Time Limit on Actions (1909, Butterworth & Co) R Meagher, D Heydon, M Leeming, Meagher Gummow & Lehane's Equity Doctrines and Remedies, (4th ed 2002, Butterworths LexisNexis Australia) I Spry, The Principles of Equitable Remedies, (5th ed 1997, LBC Information Services) I Spry, The Principles of Equitable Remedies, (9th ed 2014, Law Book Company) Category: Principal judgment Parties: Roy Gerace (First Appellant) Ilario Gerace (Second Appellant) Domenico Gerace (Third Appellant) Auzhair Supplies Pty Ltd (In liq) (First Respondent) Auzhair 1 Pty Ltd (Second Respondent) Representation: Counsel: D Ash, J Walker (Appellants) B A Coles QC, J Johnson (Respondents)