Sutherland v GHR Accounting and Anor [2015] NSWSC 1946

Supreme Court New South Wales

Medium Neutral Citation: Sutherland v GHR Accounting and Anor [2015] NSWSC 1946 Hearing dates: 23 November 2015 Decision date: 18 December 2015 Jurisdiction: Common Law Before: Hall J Decision: (1) The proceedings brought by the plaintiff against the second defendant, Macquarie Bank, are dismissed pursuant to UCPR r 13.4.

(2) The Statement of Claim filed by the plaintiff as against the first defendant on 13 August 2015 is struck out pursuant to UCPR r 14.28.

(3) Leave is granted to the plaintiff to file an Amended Statement of Claim to re-plead against the first defendant, GHR Accounting, in relation to alleged breach of contract and/or alleged negligence or negligent misstatement.

(4) I grant leave to the first and second defendants to lodge with my Associate any written submission on costs. The plaintiff is to lodge with my Associate any written submissions in reply by 4pm Friday 12 February 2016 with copies to be served on the defendants' solicitors. Catchwords: CIVIL PROCEDURE – Application for summary dismissal (pursuant to UCPR 13.4) or strike out of Statement of Claim (pursuant to UCPR 14.28) – whether Statement of Claim disclosed reasonable cause of action against either first defendant (an accounting firm) or second defendant (an investment bank) in relation to certain property and loan transactions – argued by defendants that they could not identify the case they were to answer – pleadings were defective and lacked specificity – whether losses of plaintiff were reflective losses of a company of which he was a shareholder – proceedings against Bank untenable because no specific relationship pleaded or advice pleaded as having been given by the Bank and no loss claimed to which the reflective loss principle did not apply – proceedings against Bank dismissed – pleadings against accountants embarrassing and struck out – leave granted to plaintiff to replead against accountants Legislation Cited: Real Property Act 1900 Uniform Civil procedure Rules, r 13.4, r 14.28 Cases Cited: Dey v Victorian Railway Commissioners (1949) 78 CLR 62 Esanda Finance Corporation limited v Peat Marwick Hungerfords (1995-1997) 188 CLR 241 General Steel Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125 McGuirk v The University of New South Wales [2009] NSWSC 1424 Preston v Star City Pty Limited [1999] NSWSC 1273 Mutual Life and Citizens Assurance Co Ltd v Evatt (1970) 122 CLR 628 Spencer v the Commonwealth (2010) 241 CLR 118 VPlus Holdings Pty Ltd v Bank of Western Australia Ltd [2012] NSWSC 1327 Category: Principal judgment Parties: Richard Craig Sutherland (Plaintiff) GHR Accounting (First Defendant) Macquarie Bank Limited (Second Defendant) Representation: Counsel: In person (Plaintiff) CJ Peadon (First Defendant) A Zahra (Second Defendant)