Motor Vehicles Insurance Ltd v Woodlawn Capital Pty Ltd [2014] NSWSC 1503

Supreme Court New South Wales

Medium Neutral Citation: Motor Vehicles Insurance Ltd v Woodlawn Capital Pty Ltd [2014] NSWSC 1503 Hearing dates: 3 - 12 September 2014; further written submissions 7 October 2014 Decision date: 30 October 2014 Jurisdiction: Equity Division - Commercial List Before: Stevenson J Decision: Parties to make further submissions as to the future conduct of the proceedings, in the light of these reasons Catchwords: CONTRACT - whether void ab initio for want of ministerial approval under Papua New Guinea statute - application of Foreign Corporations (Application of Laws) Act 1989 (Cth) - whether plaintiff estopped from asserting contract void ab initio - proper construction of termination clause - proper construction of investment mandate - whether defendants' conduct in breach of investment mandate - whether plaintiff established damage resulting from breach of investment mandate - proper construction of exclusion clause - whether defendant entitled to rely on exclusion clause; CORPORATIONS - whether defendant obliged to hold an Australian Financial Services License for purposes of s 911A of the Corporations Act 2001 (Cth) - whether defendant provided "financial services" for the purposes of s 766A - whether defendant provided "financial product advice" for the purposes of s 766B - whether defendant dealt in a "financial product" for the purposes of s 766C - whether defendant did not deal in a financial product by reason of Corporations Regulations 2001 (Cth) reg 7.1.35 - whether defendants provided services "in this jurisdiction" for the purposes of s 911A - whether defendants entitled to derivative crown immunity - whether plaintiff lost any statutory right of rescission under s 925A by reason of unreasonable delay under s 925A(2) or affirmation under s 925A(3); MISLEADING OR DECEPTIVE CONDUCT - whether defendants engaged in misleading or deceptive conduct for the purposes of s 1041H of the Corporations Act or s 12EA of the Australia Securities and Investments Commission Act 2001 (Cth) - warranty that held all necessary licenses and authorities - whether plaintiff would not have entered contract but for misleading or deceptive conduct; CONTRACT - proper construction - whether defendants obliged to deduct GST in relation to fees rendered to plaintiff - whether defendant entitled to calculate fees by reference to undrawn fees; TORT - injurious falsehood - whether plaintiff made false and malicious statement concerning defendants' business Legislation Cited: A New Tax System (Goods and Services) Act 1999 (Cth) Acts Interpretation Act 1901 (Cth) Australian Broadcasting Corporation Act 1983 (Cth) Australia Securities and Investments Commission Act 2001 (Cth) Companies Act 1997 (Papua New Guinea) Corporations Act 2001 (Cth) Corporations Regulations 2001 (Cth) Foreign Corporations (Application of Laws) Act 1989 (Cth) Foreign States Immunities Act 1985 (Cth) Independent Public Business Corporation of Papua New Guinea Act 2002 (Papua New Guinea) Public Finance (Management Act) 1975 (Papua New Guinea) Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council [2014] FCAFC 65; 309 ALR 445 Andar Transport Pty Ltd v Brambles Ltd [2004] HCA 28; 217 CLR 424 Armitage v Nurse [1988] Ch 241 Associated Alloys Pty Limited v ACN 001452106 Pty Limited (in liq) (2000) 202 CLR 588 Associated Plumbing Installation Ltd v Air Niugini Ltd [2011] PGSC 31 Attorney-General v Collom [1916] 2 KB 193 Attorney-General (NSW) v Quin (1990) 170 CLR 1 Australian Broadcasting Corporation v Redmore Pty Ltd (1989) 166 CLR 454 Australian Crime Commission v Gray [2003] NSWCA 318 Coghlan v SH Lock (Australia) Ltd (1987) 8 NSWLR 88 Commercial Union Insurance Co of Australia Pty Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Commonwealth v Verwayen (1990) 170 CLR 394 Electricity Generation Corp v Woodside Energy Ltd [2014] HCA 7; 88 ALJR 44 Firebird Global Master Fund II Ltd v Republic of Nauru [2014] NSWSC 360 Gould v Vaggelas (1984) 157 CLR 215 Graham v Ingleby (1848) 1 Ex 651; 154 ER 277 Karger v Paul [1984] VR 161 Keboki Business Group Inc and Morobe Provinseal Gavman v Papua New Guinea [1985] PNGLR 369 Laker Airways Ltd v Dept of Trade [1977] QB 643 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 Metropolitan Transit Authority v Waverley Transit Pty Ltd [1991] 1 VR 181 Michael Wilson & Partners Limited v Nicholls [2011] HCA 48; 244 CLR 427 Minister for Immigration and Ethnic Affairs v Kurtovic (1990) 21 FCR 193 Newey v Westpac Banking Corporation [2014] NSWCA 319 Nicholls v Michael Wilson & Partners Ltd [2010] NSWCA 222; 243 FLR 177 Pacific Carriers Ltd v BNP Paribas [2004] HCA 35; 218 CLR 451 Palmer Bruyn & Parker Pty Ltd v Parsons [2001] HCA 69; (2001) 208 CLR 388 Plimmer v City of Wellington Corp (1884) 9 App Cas 699 P T Garuda Indonesia Ltd v ACCC [2012] HCA 33; 247 CLR 240 Sargent v ASL Developments Ltd (1974) 131 CLR 634 Saunders v Vautier (1841) 4 Beav 115; 49 ER 282 Shepherd v Felt & Textiles of Australia Ltd (1931) HCA 359; 45 CLR 359 Taylor v Oakes, Roncoroni & Co [1922] All ER 866 at 869 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165 Waltons Stores (Interstate) Ltd v Maher [1988] HCA 7; 164 CLR 387 Wells v Minister of Housing and Local Government [1967] 2 All ER 1041 Texts Cited: J D Heydon and M J Leeming Jacobs' Law of Trusts in Australia (7th ed, 2006, LexisNexis Butterworths) Lewison and Hughes, The Interpretation of Contracts in Australia, (2012, Lawbook Co) M Davies, A S Bell and P L G Brereton, Nygh's Conflict of Laws in Australia, (9th ed 2014, Lexis Nexis Butterworths) N Seddon, Government Contracts: Federal, State and Local, (5th ed, 2013, The Federation Press) Young, Croft and Smith, On Equity, (2009, Lawbook Co) Category: Principal judgment Parties: Motor Vehicles Insurance Limited (Plaintiff) Woodlawn Capital Pty Ltd (First Defendant) Timothy Patrick Breen (Second Defendant) Timothy James McNamara (Third Defendant) Representation: Counsel: S G Finch SC with J Giles (Plaintiff) J C Kelly SC with D O'Connor (Defendants)