Sturesteps v Khoury [2015] NSWSC 1041

Supreme Court New South Wales

Medium Neutral Citation: Sturesteps v Khoury [2015] NSWSC 1041 Hearing dates: 17, 18 and 19 November 2014 Date of orders: 03 August 2015 Decision date: 03 August 2015 Jurisdiction: Equity Division Before: Slattery J Decision: Some parts of the proposed Further Amended Statement of Claim struck out but the balance remains. Catchwords: CIVIL PROCEDURE – strike out application – application to file new pleadings – multiple grounds for strike out – intersection of power to strike out and to give leave to file amendments – application of strike out doctrine – whether pleadings adequate

LEGAL PROFESSION – professional costs – disclosure in costs agreements

EQUITY – restitution – necessary elements for pleading restitution – whether a Legal Profession Regulations, reg 45(1)(d) statutory notice precludes the recipient from claiming to operate under a mistaken belief inconsistent with that notice - where restitution is sought from a solicitor of moneys paid to counsel pursuant to a legal retainer – whether pleading of fiduciary duty claims is adequate

CONTRACTS REVIEW ACT – time limitations applicable to deed of agreement. Legislation Cited: Australian Consumer Law, s 18 Civil Procedure Act 2005, ss 56, 57, 58, 64, 90, 91, 98 Contracts Review Act 1980, ss 7, 9, 16 Fair Trading Act 1987, ss 42, 71 Income Tax Assessment Act 1997 (Cth), ss 6-5(4); 6-10(3). Legal Profession Act 1987, Division 6, Part 11, ss 171M, 193, 199, 208B, 208D, 208K, 208L, 208M Legal Profession Act 2004, ss 353, 367A, 368, 372. Legal Profession Regulations 2002, regs 45, 52, 53 Legal Profession Regulations 2005, reg 125 Legal Profession Uniform Law Application Act 2014, Part 7 Limitation Act 1969, ss 14, 16 Strata Schemes Management Act 1996, s 140 Supreme Court Act 1970, Uniform Civil Procedure Rules, Part 14, rr 12.1, 12.10, 13.4, 14.7, 14.8, 14.14, 14.28, 19.1, 42.20 Cases Cited: ALH Group Property Holdings Pty Limited v Chief Commissioner of State Revenue (2012) 245 CLR 338 Aon Risk Services Australia Ltd v Australian National University (2009) 239 CLR 175 Australian Financial Services and Leasing Pty Ltd v Hills Industries [2014] HCA 14 Baker v Courage & Co [1910] 1 KB 56 Baltic Shipping Co v Merchant "Mikhail Lermontov" (1994) 36 NSWLR 361 Barwick v Law Society of New South Wales (2000) 169 ALR 236 Commissioner of Police for New South Wales v Industrial Commission of New South Wales & Raymond Sewell [2009] NSWCA 198 Commonwealth v Verwayen (1990) 170 CLR 456 Crescendo Management Pty Ltd v Westpac Banking Corporation (1988) 19 NSWLR 40 Currabubula Holdings Pty Ltd v State Bank of New South Wales [2000] NSWSC 232 Dey v Victorian Railways Commissioners (1949) 78 CLR 62 Dysart (Earl) v Hammerton & Co [1914] 1 Ch 822 Equuscorp Pty Ltd v Haxton (2012) 246 CLR 498 Estate of Allwood v Benjafield [2009] NSWSC 1383 Federal Commissioner of Taxation v White [2010] FCA 730 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 Gillies v Eastlake [2014] NSWSC 611 Griffith v Australian Broadcasting Corp [2013] NSWSC 750 Hans Pet Constructions Pty Limited v Cassar [2009] NSWCA 230 His Eminence Metropolitan Petar, Diocesan Bishop of the Macedonian Orthodox Church of Australia and New Zealand v The Macedonian Orthodox Community Church St Petka Incorporated [2007] NSWCA 142 Horton v Jones (No 2) (1939) 39 SR (NSW) 305 Howard v Commissioner of Taxation [2014] HCA 21 Howden v Truth & Sportsman Ltd (1937) 58 CLR 416 In Sidameneo (No 456) Pty Ltd v Alexander (No 2) [2012] NSWCA 87 Johnson v Buttress (1936) 56 CLR 113 Kallinicos v Hunt (2005) 54 NSWLR 561 Kirby v Sanderson Motors Pty Ltd (2001) 54 NSWLR 135 Law Society of NSW v Foreman (1994) 34 NSWLR 408 McGuirk v The University of New South Wales [2009] NSWSC 1424 Minerals Corporation Ltd v Abbot [2004] NSWSC 246 Murphy v Overton Investments Pty Limited [2002] FCAFC 129 Nocton v Lord Ashburton (1914) AC 932 Parramatta River Lodge Pty Ltd v Sunman (1991) 5 BPR 12,038 O'Brien v Bank of Western Australia Ltd [2013] NSWCA 71; 16 BPR 31,705 Port Of Melbourne Authority v Anshun Pty Ltd (1981) 147 CLR 589 Re Morris Fletcher & Cross' Bill of Costs [1997] 2 Qd R 228 Ren v Jiang [2014] NSWCA 388 Sent v Federal Commissioner of Taxation [2012] FCA 382 Simmons v New South Wales Trustee and Guardian [2014] NSWCA 405 Spellson v George (1992) 26 NSWLR 666 Spencer v The Commonwealth (2010) 241 CLR 118 Sturesteps v HIH Overseas Holdings Ltd (In Liq) (2011) 81 NSWLR 690 Sturesteps v McGrath [2010] NSWSC 169 Sturesteps v McGrath (2010) 242 FLR 122; [2010] NSWSC 896 Sturesteps v McGrath [2010] NSWSC 903 Sturesteps v Khoury (Supreme Court (NSW), Stevenson J, 8 May 2014, unrep) Symonds v Raphael (1998) 148 FLR 171 Takemoto v Moody's Investors Service Pty Ltd (in liq) [2014] FCA 1081 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Webster v Lampard (1993) 177 CLR 598 Welzel v Francis (2010) 77 NSWLR 92 Wenlock v Moloney [1965] 2 All ER 871 Wende v Horwath (NSW) Pty Ltd (2014) NSWLR 674; [2014] NSWCA 170 Wentworth v Rogers (2006) 66 NSWLR 474 Yorke v Lucas (1985) 158 CLR 661 Texts Cited: Carter on Contract J Goldring, JL Pratt & DEJ Ryan "The Contracts Review Act (NSW)" (1980) 4 UNSWLJ 1 J Peden, The Law of Unjust Contracts (1982, Butterworths) Ritchie's Uniform Civil Procedure NSW Category: Principal judgment Parties: First plaintiff: George Osvald Sturesteps Second plaintiff: Beryl Donna Sturesteps First defendant: Dieb Peter Khoury Second defendant: Benjamin & Khoury Pty Limited Representation: Counsel: Plaintiffs: C.J. Bevan Defendants: K. Connor; A. Ahmad