Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd [2014] NSWCA 266

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd [2014] NSWCA 266 Hearing dates: 2-3 June 2014 Decision date: 15 August 2014 Before: Barrett JA at [1]; Gleeson JA at [6]; Leeming JA at [13] Decision: In 2013/333672: Appeal dismissed and cross-appeal dismissed. In 2013/342608: Appeal dismissed and cross-appeal dismissed. In 2013/343099: Appeal dismissed. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: APPEAL - challenge to findings of fact - deference to trial judge

EQUITY - fiduciary duty - employee in position of conflict - accessory liability for knowing assistance in dishonest and fraudulent design - meaning of "dishonest and fraudulent design" - whether necessary to show knowledge of absence of informed consent - measure of equitable compensation

FRAUD - pleadings and course of trial - whether finding of dishonesty available

PRECEDENTS - departure from decision of another intermediate appellate court - where not necessary to do so in order to resolve appeal - where issue was important, causing inconsistent formulations of principle - precedential status of a decision which did not itself develop the common law but merely explained decision of High Court - comity Legislation Cited: Companies Act 1907 (UK), s 32 Companies Act 1936 (NSW), s 361 Companies Act 1961 (NSW), s 365 Companies (New South Wales) Code, ss 229(2), 535 Corporations Act 2001 (Cth), s 1318 Evidence Act 1995 (NSW), s 140 Judicial Trustees Act 1896 (UK), s 3 Judiciary Act 1903 (Cth), s 35A Trade Practices Act 1974 (Cth), s 52 Trustee Act 1925 (NSW), s 85 Trustee Act Amendment Act 1902 (NSW), s 9 Trustees Act 1962 (WA), s 75 Cases Cited: Alexander v Burne [2013] NSWSC 1953 Alleyne v Darcy (1854) 4 Ir Ch Rep 199 Australian Securities and Investments Commission v Vines [2005] NSWSC 1349; 65 NSWLR 281 Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485 Barlow Clowes International Ltd (in liq) v Eurotrust International Ltd [2006] 1 All ER 333 Barnes v Addy (1874) LR 9 Ch App 244 Beck v Henley [2014] NSWCA 201 Belmont Finance Corporation Ltd v Williams Furniture Ltd [1979] Ch 250 BigTinCan Pty Ltd v Ramsay [2013] NSWSC 1248 Biogen Inc v Medeva plc [1996] UKHL 18; [1997] RPC 1 Bodenham v Hoskyns (1852) 21 LJ 864; 42 ER 1125 Briginshaw v Briginshaw (1938) 60 CLR 336 Bunnings Group Ltd v Borg [2014] NSWCA 240 CAL No 14 Pty Ltd v Motor Accidents Insurance Board [2009] HCA 47; 239 CLR 390 Commonwealth Financial Planning Ltd v Couper [2013] NSWCA 444 Consul Development Pty Ltd v DPC Estates Pty Ltd (1975) 132 CLR 373 Craigcare Group Pty Ltd v Superkite Pty Ltd [2014] NSWSC 326 Dawson Investments Pty Ltd v Crystal Finance Pty Ltd [No 3] [2013] WASC 183 Derry v Peek (1889) 14 App Cas 337 Director of Public Prosecutions v Patrick Stevedores Holdings Pty Ltd [2012] VSCA 300; 296 ALR 156 Dubai Aluminium Co Ltd v Salaam [2003] 2 AC 366 Eaves v Hickson (1861) 30 Beav 136 Edwards v Attorney General [2004] NSWCA 272; 60 NSWLR 667 Elder's Trustee and Executor Co Ltd v Higgins (1963) 113 CLR 426 Esso Australia Resources v Commissioner of Taxation [1999] HCA 67; 201 CLR 49 Farah Constructions Pty Ltd v Say-Dee Pty Ltd [2007] HCA 22; 230 CLR 89 FHR European Ventures LLP v Cedar Capital Partners LLC [2014] UKSC 45 Fink v Fink (1946) 74 CLR 127 Fox v Percy [2003] HCA 22; 214 CLR 118 Gerace v Auzhair Supplies Pty Ltd [2014] NSWCA 181 Gett v Tabet [2009] NSWCA 76; 254 ALR 504 Gibbs v Mercantile Mutual Insurance (Australia) Ltd [2003] HCA 39; 214 CLR 604 Giumelli v Giumelli [1999] HCA 10; 196 CLR 101 Grimaldi v Chameleon Mining NL (No 2) [2012] FCAFC 6; (2012) 200 FCR 296 In re Grindey; Clews v Grindey [1898] 2 Ch 593 King Network Group Pty Ltd v Club of the Clubs Pty Ltd [2008] NSWCA 344; 69 ACSR 172 Lawson v Mitchell [1975] VR 579 Maguire v Makaronis (1997) 188 CLR 449 Marshall v Director-General, Department of Transport [2001] HCA 37; (2001) 205 CLR 603 Michael Wilson & Partners Ltd v Nicholls [2011] HCA 48; 244 CLR 427 Midgley v Midgley [1893] 3 Ch 282 National Trustees Company of Australasia v General Finance Company of Australasia [1905] AC 373 Nicholson v Morgan [No 3] [2013] WASC 110 Nocton v Lord Ashburton [1914] AC 932 Novoship (UK) Ltd v Nikitin [2014] EWCA Civ 908 Paragon Finance plc v DB Thakerar & Co [1999] 1 All ER 400 Parkview Qld Pty Ltd v Commonwealth Bank of Australia [2013] NSWCA 422 R v XY [2013] NSWCCA 121; 84 NSWLR 363 Ramshire v Bolton (1869) 8 LR Eq 294 Re Dawson (deceased); Union Fidelity Trustee Co Ltd v Perpetual Trustee Co Ltd [1966] 2 NSWR 211 RJE v Secretary to the Department of Justice [2008] VSCA 265; 21 VR 526 Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378 Saunders v Vautier (1841) EWHC Ch J82 Selangor United Rubber Estates Ltd v Cradock (No 3) [1968] 1 WLR 1555 Slim v Croucher (1860) 1 De G F & J 518; 45 ER 462 State Rail Authority (NSW) v Earthline Constructions Pty Ltd (In liq) [1999] HCA 3; 73 ALJR 306 Sydney Harbour Casino Pty Ltd v Vignoli [1999] NSWCA 273 Twinsectra Ltd v Yardley [2002] 2 AC 164 Walker Corporation Pty Ltd v Sydney Harbour Foreshore Authority [2008] HCA 5; 233 CLR 259 Westpac Banking Corporation v Bell Group Ltd (No 3) [2012] WASCA 157; 44 WAR 1 Willett v Thomas [2012] NSWCA 97 Williams v Central Bank of Nigeria [2014] UKSC 10; [2014] 2 All ER 489 Woodland v Swimming Teachers Association [2013] UKSC 66; [2014] AC 537 Xu v Jinhong Design & Constructions Pty Ltd [2011] NSWCA 277 Zhu v Treasurer of NSW [2004] HCA 56; 218 CLR 530 Texts Cited: A Black, "Directors' statutory and general law accessory liability for corporate wrongdoing" (2013) 31 C&SLJ 511 J Edelman, "Nocton v Lord Ashburton" in C Mitchell and P Mitchell (eds), Landmark Cases in Equity (Hart Publishing, 2012) S Elliott and C Mitchell, "Remedies for Dishonest Assistance" (2004) 67 Modern Law Review 16 A M Gleeson, "Judicial Legitimacy" (2000) 20 Aust Bar Rev 4 W Gummow, "Knowing assistance" (2013) 87 ALJ 3 H Hanbury, Modern Equity: The Principles of Equity, (8th ed, 1962, Stevens) C Harpum, "The Stranger as Constructive Trustee: Part 1" (1986) 102 LQR 114 HLA Hart, The Concept of Law (3rd ed, 2012, Oxford University Press) P Ridge, "Equitable accessorial liability: Moving beyond Barnes v Addy" (2014) 8 Journal of Equity 28 R Walker, "Dishonesty and Unconscionable Conduct in Commercial Life - Some Reflections on Accessory Liability and Knowing Receipt" (2005) 27 Sydney Law Review 187 Category: Principal judgment Parties: In 2013/333672: Craig Hasler (appellant and cross-respondent) Singtel Optus Pty Ltd (respondent and cross-appellant)