In the matter of Karinya Haulage Pty Limited [2017] NSWSC 888

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Karinya Haulage Pty Limited [2017] NSWSC 888 Hearing dates: Monday, 3 July 2017 Date of orders: 04 July 2017 Decision date: 04 July 2017 Jurisdiction: Equity - Corporations List Before: Brereton J Decision: Leave granted under Corporations Act, s 237, to bring a statutory derivative action. Catchwords: CORPORATIONS – members rights and remedies – statutory derivative action – application for leave – relevant considerations – where action potentially barred by limitation statute

COSTS – application for leave to bring statutory derivative action – inappropriate to make costs of application – costs in derivative claim – inappropriate to reserve – no reason to depart from prima facie position that unsuccessful defendant should pay successful plaintiff's costs Legislation Cited: (CTH) Corporations Act 2001, s 236, s 237 (NSW) Limitation Act 1969, s 14(1)(b), s 55 (NSW) Uniform Civil Procedure Rules 2005, r 14.14 Cases Cited: Carey-Hazell v Getz Bros & Co (Aust) Pty Ltd (2001) 112 FCR 336; [2001] FCA 703 Charlton v Baber (2003) 47 ACSR 31 Commonwealth v Mewett (1997) 191 CLR 471; 146 ALR 299 Commonwealth v Verwayen (1990) 170 CLR 394; 95 ALR 321 Foodco Group Pty Ltd v Northgan Pty Ltd (1998) 83 FCR 356 Goozee v Graphic World Group Holdings Pty Ltd (2002) 170 FLR 451; 42 ACSR 534 Maher v Honeysett & Maher Electrical Contractors Pty Ltd [2005] NSWSC 859 Swansson v R A Pratt Properties Pty Ltd (2002) 42 ACSR 313 Victory Projects Pty Ltd v AAA Self Storage Pty Ltd [2016] NSWSC 1758 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Wilson v Rigg (2002) 36 MVR 451; [2002] NSWCA 246 Category: Principal judgment Parties: Neil Gary Hargraves (P) Susan Eveston (1D) Karinya Haulage Pty Limited (2D) Representation: Counsel: R D Marshall SC w A Djurdjevic (P) M W Sneddon (Ds)