Smith v Australian Executor Trustees Limited;; Creighton v Australian Executor Trustees Limited [2017] NSWSC 1406

Supreme Court New South Wales

Medium Neutral Citation: Smith v Australian Executor Trustees Limited;; Creighton v Australian Executor Trustees Limited [2017] NSWSC 1406 Hearing dates: 26 September 2017 Date of orders: 13 October 2017 Decision date: 16 October 2017 Jurisdiction: Equity Before: Ward CJ in Eq Decision: (1) PwC's application for summary dismissal of the second cross claim is dismissed. (2) Leave to file the proposed amended second cross claim in the form annexed to the affidavit of AET's solicitor be refused. (3) Those paragraphs of the second cross claim alleging: breach of duty of care by PwC ([18], [56], [94], [132]) and causation of loss ([19], [57]; [95], and [133]) (those paragraphs relating to the negligence claims for all financial years); audit wrongdoing and causation of loss ([23], [26], [31], [33], [61], [64], [69], [71], [99], [102], [107], [109], [137], [140], [145], [147]) (those paragraphs relating to the allegations of misleading and deceptive conduct for all financial years); and the corresponding allegations in the contribution claims for all financial years ([39], [40], [41], [77], [78], [79], [115], [116], [117], [153], [154], and [155]), as well as references to corresponding (but not specified) provisions of legislation in other States or Territories both in the claims directly made by AET against PwC and in the contribution claims, be struck out. (4) AET is directed to serve a further proposed amended second cross claim in accordance with these reasons within 14 days and, if consent to the filing of that further proposed amended second cross claim is not forthcoming from PwC, then AET is to apply to Ball J's associate to have the matter relisted before his Honour to determine whether leave should be granted to AET to file the said further proposed amended second cross claim. (5) Notice of motion filed 30 June 2017 is otherwise dismissed. (6) AET is to pay PwC's costs thrown away by any amendment allowed to the second cross claim. (7) Costs of the notice of motion, so far as they relate to PwC's summary dismissal claim, be costs in the cause and, so far as they relate to the application to strike out parts of the second cross claim, be borne by AET. Catchwords: PRACTICE AND PROCEDURE – applications for summary dismissal pursuant to r 13.4 and/or to strike out parts of the pleadings pursuant to r 14.28 of the Uniform Civil Procedure Rules 2005 (NSW) Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Civil Liability Act 2002 (NSW), ss 5B, 5D(1)(a), 5D(1)(b) Civil Procedure Act 2005 (NSW) Corporations Act 2001 (Cth), ss 283F, 283DA, 313, 318 Fair Trading Act 1987 (NSW) Fair Trading Act 1999 (Vic), s 6(2) Law Reform (Miscellaneous Provisions) Act 1946 (NSW), s 5(1)(c) Trade Practices Act 1974 (Cth), s 52 Trade Practices Act 1974 (NSW) Uniform Civil Procedure Rules 2005 (NSW), rr 13.4, 14.28 Wrongs Act 1958 (Vic), s 23B Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council (2014) 224 FCR 1; [2014] FCAFC 65 ACQ Pty Ltd v Cook (2008) 72 NSWLR 318; [2008] NSWCA 161 Agar v Hyde (2000) 201 CLR 552; [2000] HCA 41 Alexander v Cambridge Credit Corp Ltd (1987) 9 NSWLR 310 ANZ Banking Group Ltd v Turnbull (1991) 33 FCR 265 Banque Commerciale SA (in Liq) v Akhil Holdings Ltd (1990) 169 CLR 279; [1990] HCA 11 Bass v Permanent Trustee Co Ltd (1999) 198 CLR 334 Bathurst Regional Council v Local Government Financial Services Pty Ltd (No. 2) (2011) 82 ACSR 617; [2011] FCA 309 Bialkower v Acohs Pty Ltd (1998) 83 FCR 1 Bishopsgate Insurance Australia Ltd (in liq) v Deloitte Haskins & Sells [1999] 3 VR 863 Brambles Australia Ltd Trading as CHEP Australia v Tatale Pty Ltd [2006] NSWSC 204 Brookfield Multiplex Ltd v Owners Corp Strata Plan 61288 (2014) 254 CLR 185; [2014] HCA 36 Bruce v Odhams Press Ltd [1936] 1 KB 697 Bryan v Maloney (1995) 182 CLR 609; [1995] HCA 17 Built NSW v EvolveBuilt Contracting [2014] NSWSC 255 Burke v LFOT Pty Ltd (2000) 178 ALR 161; [2000] FCA 1155 Burke v LFOT Pty Ltd (2002) 209 CLR 282; [2002] HCA 17 Caason Investments v Cao (2015) 236 FCR 322; [2015] FCAFC 94 Caltex Oil (Australia) Pty Ltd v Dredge "Willemstad" (1976) 136 CLR 529 Caltex Refineries (Qld) Pty Limited v Stavar (2009) 75 NSWLR 649; [2009] NSWCA 258 CJD Equipment v A&C Constructions [2009] NSWSC 1362 Cox v Journeaux (No. 2) (1935) 52 CLR 713 Dey v Victorian Railways Commissioners (1949) 78 CLR 62 Dorrough v Bank of Melbourne Limited [1995] FCA 1573 Esanda Finance Corp Ltd v Peat Marwick Hungerfords (1997) 188 CLR 241; [1997] HCA 8 Garzo v Liverpool/Campbelltown Christian School Ltd [2011] NSWSC 292 General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125; [1964] HCA 69 Graphite Energy Pty Ltd v Lloyd Energy Systems Pty Ltd [2014] NSWSC 1326 Gunns Ltd v Marr [2005] VSC 251 Hastie Group Ltd (in liq) v Bourne [2017] NSWSC 709 HFPS Pty Limited (Trustee) v Tamaya Resources Limited (in Liq) (No 2) [2016] FCA 446 HIH Claims Support Ltd v Insurance Australia Ltd (2011) 244 CLR 72; [2011] HCA 31 Hoxton Park Residents Action Group Inc v Liverpool City Council [2012] NSWSC 1026 Hunt & Hunt v Mitchell Morgan Nominees Pty Ltd (2013) 247 CLR 613; [2013] HCA 10 Hunter and New England Area Health District v McKenna (2014) 253 CLR 270; [2014] HCA 44 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Market Ltd (2008) 73 NSWLR 653; [2008] NSWCA 206 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd [2004] NSWSC 1219 Ingot Equity Capital Markets Pty Ltd v Macquarie Equity Capital Investments Ltd [2004] NSWSC 1136 Jingellic Minerals NL v Abigroup Ltd (1992) 7 WAR 566 Johnson Tiles Pty Ltd v Esso Australia Pty Ltd (2000) 104 FCR 564; [2000] FCA 1572 Jones v Mortgage Acceptance Nominees Ltd (1996) 63 FCR 418Jonstan Pty Limited v Nicholson (2003) 58 NSWLR 223; [2003] NSWSC 500 Leitch v Abbott (1886) 31 Ch D 374 Lukey v Corporate Investment Australia Funds Management Pty Ltd [2005] FCA 298 McGuirk v University of New South Wales [2009] NSWSC 1424 Mitanis v Pioneer Concrete (Vic) Pty Ltd (1997) ATPR 41-591 Modbury Triangle Shopping Centre Pty Ltd v Anzil (2000) 205 CLR 254; [2000] HCA 61 NSW v Spearpoint [2009] NSWCA 233 Paul v Cooke (2013) 85 NSWLR 167; [2013] NSWCA 311 Perera v Genworth Financial Mortgage Insurance Pty Ltd [2017] NSWCA 19 Perpetual Trustee Company Ltd v Milanex Pty Ltd (in liq) [2011] NSWCA 367 Perpetual Trustees Victoria Ltd v Dunlop [2009] VSC 331 Perre v Apand Pty Ltd (1999) 198 CLR 180; [1999] HCA 36 PPK Willoughby Pty Ltd v Roads and Maritime Services [2014] NSWSC 407 Ramsey v Vogler [2000] NSWCA 260 Redbro Investments Pty Ltd v Ceva Logistics (Australia) Pty Ltd [2015] NSWCA 73 Re HIH Insurance Ltd (in liq) (2016) 113 ACSR 318; [2016] NSWSC 482 R Lowe Lippmann Figdor & Franck v AGC Ltd [1992] 2 VR 671 Schellenberg v Tunnel Holdings Pty Limited (2000) 200 CLR 121; [2000] HCA 18 Shaw v State of New South Wales [2012] NSWCA 102 Shelton v National Roads and Motorist Association Ltd (2004) 51 ACSR 278; [2004] FCA 1393 Skalkos v Smiles [2006] NSWSC 192 Stuart v Kirkland-Veenstra (2009) 237 CLR 215; [2009] HCA 15 Sullivan v Moody (2001) 207 CLR 562; [2001] HCA 59 Sunlea Enterprises Pty Ltd v Pollock [No 3] [2015] WASC 330 Su v Direct Flights International Pty Limited [1998] ATPR 41-662 Tamaya Resources Limited (in liq) v Deloitte Touche Tohmatsu (a Firm) [2015] FCA 1098 Tame v State of NSW; Annetts v Australian Stations Pty Ltd (2002) 211 CLR 317; [2002] HCA 35 Telecom Vanuatu Ltd v Optus Networks Pty Ltd [2005] NSWSC 951 Thorp v Holdsworth (1876) 3 Ch D 637 Travel Compensation Fund v Tambree (2005) 224 CLR 627; [2005] HCA 69 Ultramares Corporation v Touche (1931) 174 NE 441 Wallace v Kam (2013) 250 CLR 375; [2013] HCA 19 Waller v James (2015) 90 NSWLR 634; [2015] NSWCA 232 Weston v Publishing and Broadcasting Ltd (2012) 88 ACSR 80; [2012] NSWCA 79 Weston v Publishing and Broadcasting Ltd(2011) 83 ACSR 206; [2011] NSWSC 433 Whyte v Ahrens (1884) 26 Ch D 717; Williams & Humbert v W & H Trade Marks (Jersey) Ltd [1986] AC 368 Woolcock Street Investments Pty Ltd v CDG Pty Ltd (2004) 216 CLR 515; [2004] HCA 16 Wride v Schulze [2004] FCAFC 216 X (Minors) v Bedfordshire County Council [1995] 2 AC 633 Young Investments Group Pty Ltd v Mann (2012) 293 ALR 537 Young v Tieco International (1999) 182 LSJS 367 Texts Cited: J Campbell, "Contribution, Contributory Negligence and Section 52 of the Trade Practices Act" (1993) 67 ALJ 87 Category: Procedural and other rulings Parties: In the Smith proceedings (2015/00171592):