Alesco Corporation Limited ACN 008 666 064 v Te Maari [2015] NSWSC 469

Supreme Court New South Wales

Medium Neutral Citation: Alesco Corporation Limited ACN 008 666 064 v Te Maari [2015] NSWSC 469 Hearing dates: 1 April 2015 Decision date: 30 April 2015 Jurisdiction: Equity Division Before: Hallen J Decision: Direct the Plaintiff to deliver, within 21 days, proposed Short Minutes of Order giving effect to these reasons for judgment and the orders proposed taking into account calculations of interest to which reference has been made.Click here to enter text. Catchwords: EQUITY – First Defendant – An employee misappropriates funds of Plaintiff employer – Misappropriated funds applied for the benefit of Defendants

REMEDIES – Remedies in equity – Tracing funds – Subrogation – Constructive trust – Equitable charge – Actual or constructive knowledge of second Defendant

PROCEDURE – Whether failure to file a defence is an admission of the facts pleaded in the Statement of ClaimClick here to enter text. – Whether hearing should proceed in absence of the Defendants Legislation Cited: Civil Procedure Act 2005 (NSW) Evidence Act 1995 (NSW) Ritchie's Uniform Civil Procedure (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Abou-Hamad v Darwish [2012] NSWSC 231 Angus Carnegie Gordon in his capacity as liquidator of Lyon Form Pty Ltd (in liq) v Leon Plant Hire Pty Ltd (in liq) [2015] NSWSC 397 Austar Finance Group Pty Ltd v Campbell [2007] NSWSC 1493; (2007) 215 FLR 464 Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) (1978) 141 CLR 335 Australian & New Zealand Banking Group v RQA Accountants Pty Ltd [2013] NSWSC 165 Australian Postal Corporation v Lutak (1991) 21 NSWLR 584 Barnes v Addy (1874) LR 9 Ch App 244 Bathurst City Council v PwC Properties Pty Ltd [1998] HCA 59; 195 CLR 566 Bauskis v Liew [2013] NSWCA 297 Blackman v S Freedman & Co [1910] HCA 58; (1910) 12 CLR 105 Boscawen v Bajwa [1995] All ER 769; [1996] 1 WLR 328 Cashflow Finance Pty Ltd v Westpac Banking Corporation [1999] NSWSC 671 Creak v James Moore & Sons Pty Ltd [1912] HCA 67; (1912) 15 CLR 426 F M Custodians Limited v McKenzie, McKenzie and North harbour Trustee Company Limited as Trustees of the McKenzie Trust [2010] NZHC 1374 Foskett v McKeown [2000] UKHL 29; [2001] 1 AC 102 French Consulting Pty Limited v Lawson Stuart Donald [2011] NSWSC 584 GIO General Limited v Centennial Newstan Pty Ltd [2014] NSWCA 13 Giumelli v Giumelli [1999] HCA 10; (1999) 196 CLR 101 Gould v Purtle [2014] NSWSC 493 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; (2012) 287 ALR 22 Hagan v Waterhouse (1991) 34 NSWLR 308 Hamod v State of New South Wales [2011] NSWCA 375 Hans Pet Constructions Pty Limited v Cassar [2009] NSWCA 230 Helou v Nguyen [2014] NSWSC 22 Heperu Pty Ltd v Belle [2009] NSWCA 252; (2009) 76 NSWLR 230 Highland v Exception Holdings Pty Ltd (in liq) [2006] NSWCA 318; (2006) 60 ACSR 223 Kingdon v Kirk (1887) 37 Ch D 141 Knight v Maclean [2002] NSWCA 314 Konica Minolta Business Solutions Australia Pty Ltd v Vongkeneta [2013] NSWSC 486 Macdonald v Australian Securities and Investments Commission [2007] NSWCA 304; (2007) 73 NSWLR 612 McDonald v Centennial Newstan Pty Limited [2012] NSWDC 218 Menzies v Perkins [2000] NSWSC 40 Norco Co-Operative Limited v Kelly [2010] NSWSC 719 NSW Trustee and Guardian as Executor of the Will of Michael Robert Walsh (Deceased) v Gregory [2012] NSWSC 681 Orakpo v Manson Investments Ltd [1978] AC 95 Oxley v Oxley [2014] NSWSC 1606 Paul A Davies (Aust) Pty Ltd (in liq) v Davies [1983] 1 NSWLR 440 Quality Bakers Australia Pty Ltd v Yassin Modern Bakery Pty Ltd (trading as Yassin Lebanese Bakery) [2007] NSWSC 804 Rae v Russell [2012] NZCA 536 Re Cook v Italiano Family Fruit Co Pty Ltd (in liq) [2010] FCA 1355; (2010) 276 ALR 349 Re Diplock [1948] Ch 465 Robb Evans of Robb Evans & Associates v European Bank Ltd [2004] NSWCA 82; (2004) 61 NSWLR 75 Russell Gould Pty Ltd v Ramangkura [2014] NSWCA 310; (2014) 313 ALR 367 Satz v ACN 069 808 957 Pty Ltd [2010] NSWSC 365 SCEGS Redlands Ltd v Barbour [2008] NSWSC 928 Sinclair v Brougham [1914] AC 398 Smirski v Macander [2010] NSWSC 929 Sneddon v State of New South Wales [2012] NSWCA 351 Sood v Christianos [2008] NSWSC 1087 Stone v Smith (1887) 35 Ch D 188 Sutherland Re; French Caledonia Travel Service Pty Ltd (in liq) [2003] NSWSC 1008; (2003) 59 NSWLR 361 Sze Tu v Lowe [2014] NSWCA 462 Toksoz v Westpac Banking Corporation [2012] NSWCA 199; (2012) 289 ALR 577 Wambo Coal Pty Ltd v Ariff [2007] NSWSC 589 Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669 Texts Cited: M Stone and A McKeough, "Tracing in the Age of Restitution" (2003) 26(2) University of New South Wales Law Journal 377 Hon Peter W Young AO, Clyde Croft and Megan Louise Smith, On Equity (2009, Thomson Reuters) L D Click here to enter text.Smith, The Law of Tracing (1997, Clarendon Press) Lewin on Trusts (18th ed 2015, Sweet & Maxwell) Meagher, Gummow & Lehane's Equity: Doctrines and Remedies (4th ed 2002, Butterworths) Category: Principal judgment Parties: Alesco Corporation Limited (Plaintiff) Sireen Te Maari (also known as Sireen Sharqawi) (first Defendant) Stefan Te Maari (second Defendant) Representation: Counsel: Mr M Izzo (Plaintiff)