Skinner v Redmond Family Holdings Pty Ltd [2017] NSWCA 329

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Skinner v Redmond Family Holdings Pty Ltd [2017] NSWCA 329 Hearing dates: 24 November 2017 Decision date: 15 December 2017 Before: Macfarlan JA at [1] Gleeson JA at [2] Barrett AJA at [177] Decision: (1) Grant an extension of time for the second appellant to file the amended notice of appeal on 9 August 2017.

(2) Refuse leave to the appellants to rely upon the affidavit of Mark Henry Skinner sworn 24 November 2017.

(3) Appeal dismissed.

(4) Appellants to pay the respondent's costs. Catchwords: TRADE PRACTICES – misleading and deceptive conduct – whether failure to disclose creditors' unilateral right to convert debts to equity was misleading and deceptive – whether reasonable expectation on the part of the respondent as prospective investor that convertibility of loans to equity would be disclosed – where failure to disclose occurred before respondent acquired its shareholding in companies – where purported conversion of loans to equity diluted respondent's shareholding significantly.

TRADE PRACTICES – misleading and deceptive conduct – whether non-disclosure of convertibility of loans to equity was causative of respondent's decision to acquire shares in companies.

TRADE PRACTICES – misleading and deceptive conduct – whether primary judge erred in apportioning responsibility for misleading and deceptive conduct equally between appellants.

APPEAL AND NEW TRIAL – application to adduce further evidence – whether substantial injustice to the appellants if unable to rely on further evidence – where evidence was available by reasonable diligence to be adduced at trial – where high degree of probability of a different result at trial. Legislation Cited: Australian Securities and Investments Commission Act 2001 (Cth) Corporations Act 2001 (Cth), Pt 7.10 Div 2A, 1041H, 1041I, 1041L, 1041N Civil Liability Act 2002 (NSW), ss 34, 35 Civil Procedure Act 2005 (NSW), s 100 Fair Trading Act 1987 (NSW), s 42 Supreme Court Act 1970 (NSW), s 75A Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: Akins v National Australia Bank (1994) 34 NSWLR 155 APIR Systems Ltd v Donald Financial Enterprises Pty Ltd [2009] FCAFC 45 Australian Securities and Investment Commission v PFS Business Development Group Pty Ltd [2006] VSC 192; (2006) 57 ACSR 553 Banque Commerciale SA (en liqn) v Akhil Holdings Limited (1990) 169 CLR 279; [1990] HCA 11 Betfair Racing Pty Ltd v Racing New South Wales (2011) 189 FCR 356; [2011] FCAFC 133 Campomar Sociedad, Limitada v Nike International Ltd (2000) 202 CLR 45; [2000] HCA 12 Fabcot Pty Ltd v Port Macquarie Hastings Council [2011] NSWCA 167 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Harrison v Schipp (2002) 54 NSWLR 612; [2002] NSWCA 78 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Hornsby Building Information Centre Pty Ltd v Sydney Building Information Centre Ltd (1978) 140 CLR 216 Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd and Ors (2012) 247 CLR 613 I&L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109; [2002] HCA 41 Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd (2008) 73 NSWLR 653; [2008] NSWCA 206 In the matter of HIH Insurance Limited (in liq) (ACN 008 636 575) and Ors [2016] NSWSC 482 Johnson Tiles Pty Ltd v Esso Australia Ltd [2000] FCA 1572; 104 FCA 564 Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd (2001) 241 CLR 357; [2010] HCA 31 Mitchell Morgan Nominees Pty Ltd v Vella [2011] NSWCA 390 OXS Pty Ltd v Sydney Harbour Foreshore Authority [2016] NSWCA 120 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191 Podrebersek v Australian Iron & Steel Pty Ltd (1985) 59 ALJR 492 Traderight (NSW) Pty Ltd v Bank of Queensland Ltd [2015] NSWCA 94 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514; [1992] HCA 55 Water Board v Moustakas (1994) 180 CLR 491; [1994] HCA 12 Yorke v Lucas (1985) 158 CLR 661; [1985] HCA 65 Category: Principal judgment Parties: Mark Henry Skinner (First Appellant) Patrick Charles Oliver Stone (Second Appellant) Redmond Family Holdings Pty Ltd (Respondent) Representation: Counsel: Mr M Foley (Solicitor) (Appellants) Mr M Bennett (Respondent)