Webster v Super Smart Strategies Pty Ltd;; Courtney v Super Smart Strategies Pty Ltd [2017] NSWSC 531

Supreme Court New South Wales

Medium Neutral Citation: Webster v Super Smart Strategies Pty Ltd;; Courtney v Super Smart Strategies Pty Ltd [2017] NSWSC 531 Hearing dates: 26, 28 April 2017 Date of orders: 26 April 2017 Decision date: 04 May 2017 Jurisdiction: Common Law Before: Adamson J Decision: See paragraphs [96]-[99]. Catchwords: PRACTICE AND PROCEDURE – defendants'/ cross-claimants' persistent default in compliance with court directions – failure to engage in court-ordered mediation – inference that they have abandoned proceedings – appropriate to strike out defence to plaintiffs' claim and enter default judgment and dismiss cross-claim – prejudice to parties – dismissal proportionate to defendants' default – order that no proceedings be commenced without leave on same or similar facts until cross-defendants' costs paid – order to prevent further abuse by defendants of court processes

CORPORATIONS – liquidation – effect of statutory stay pursuant to s 471B of the Corporations Act 2001 (Cth) – purpose is to protect net assets of a company in liquidation – summary dismissal for want of prosecution not a proceeding against a company under s 471B

DAMAGES – breach of contract and misrepresentations – assessment of damages

COSTS – gross sum costs order made rather than assessed costs pursuant to s 98 (4)(c) of the Civil Procedure Act 2005 (NSW) Legislation Cited: Acts Interpretation Act 1901 (Cth), s15AA Australian Consumer Law (Sch 2 to the Competition and Consumer Act 2010 (Cth)) Civil Procedure Act 2005 (NSW), Part 6, ss 61, 67, 98, 98(4), 98(4)(c) Contracts Review Act 1980 (NSW) Corporations Act 2001 (Cth), ss 471B, 491(1), 1335 Fair Trading Act 1987 (NSW) Law Reform (Miscellaneous Provisions) Act 1946 (NSW), s 5(1)(c) Trade Practices Act 1974 (Cth) Uniform Civil Procedure Rules 2005 (NSW), rr 12.7, 12.10, 16.2(1)(c), 16.3(1)(a), 16.10, 18.4, 42.20, 42.20(2) Cases Cited: BPM Pty Ltd v HPM Pty Ltd (1996) 14 ACLC 857 Citigroup Pty Limited v Middling (No. 4) [2015] NSWSC 221 Dealquip Australia Pty Ltd v 33 Electra Pty Ltd (No. 2) [2013] NSWSC 1382 DSG Holdings Australia Pty Ltd and Another v Helenic Pty Ltd (2014) 86 NSWLR 293; [2014] NSWCA 96 Gates v City Mutual Life Assurance Society Ltd (1986) 160 CLR 1 Ghosh v NineMSN Pty Ltd (2015) 90 NSWLR 595; [2015] NSWCA 334 Hession v Century 21 South Pacific Ltd (in liquidation) (1992) 28 NSWLR 120 Maureen Courtney and Brett Courtney as trustee for the Courtney Superannuation Fund v Super Smart Strategies Pty Limited [2017] NSWSC 242 Re AJ Benjamin Ltd (in liq) and the Companies Act (1969) 90 WN (Pt 1) (NSW) 107 Singh v Singh [2017] NSWCA 15 Wardley Australia Ltd v State of Western Australia (1992) 175 CLR 514 Young v Roads and Maritime Services [2016] NSWCA 238 Category: Principal judgment Parties: Proceedings 2013/78666 Richard Webster (First Plaintiff) Loris Webster (Second Plaintiff) Webster Superannuation Fund (Third Plaintiff) Super Smart Strategies Pty Ltd ACN 098 688 085 (now ACN 098 688 085 Pty Ltd (in liq))(First Defendant) Rick Frank Alfred Manietta (Second Defendant) Rick Manietta Investments Pty Limited ACN 080 851 207) (Third Defendant)