Edgewater Homes Pty Ltd v Donohoe [2019] NSWSC 44

Supreme Court New South Wales

Medium Neutral Citation: Edgewater Homes Pty Ltd v Donohoe [2019] NSWSC 44 Hearing dates: 27 November 2018 Decision date: 06 February 2019 Jurisdiction: Equity - Commercial List Before: Stevenson J Decision: The plaintiffs' release of the second to eighth defendants released the first defendant from the plaintiffs' claim for breach of fiduciary duty but not their claim for breach of contract Catchwords: EQUITY – fiduciary duty – release by beneficiary of parties who allegedly knowingly received fruits of breach of fiduciary duty and who allegedly were knowingly involved in the breach – whether defaulting fiduciary also released

CONTRACT – inducing breach of contract – whether release of parties who allegedly induced breach of contract also released party allegedly in breach of contract Legislation Cited: Law Reform (Miscellaneous Provisions) Act 1946 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Barnes v Addy (1874) LR 9 Ch App 244 Baxter v Obacelo Pty Ltd (2001) 205 CLR 635; [2001] HCA 66 Coulton v Coulton [2008] NSWSC 910 Duck v Mayeu [1892] 2 Q.B. 511 Efstratiou, Glantschnig and Petrovic v Glantschnig [1972] NZLR 594 Grimaldi v Chameleon Mining NL (No 2) (2012) 200 FCR 296; [2012] FCAFC 6 Harplex Pty Ltd v Konstandellos (2018) 54 VR 174; [2018] VSCA 67 Lewis Securities Ltd (in liq) v Carter [2018] NSWCA 118; (2018) 355 ALR 703 Michael Wilson & Partners Ltd v Nicholls (2011) 244 CLR 427; [2011] HCA 48 New Cap Reinsurance Corporation Ltd v General Cologne Re Australia Ltd [2004] NSWSC 781 Sky Channel Pty Ltd v Tszyu [2000] NSWSC 838 Thompson v Australian Capital Television Pty Ltd (1996) 186 CLR 574; [1996] HCA 38 Thompson v Harrison (1787) 2 Bro. C.C. 164; 29 E.R. 94 Trustor AB v Smallbone [2000] All ER D 624 Ultraframe (UK) Ltd v Fielding [2005] EWHC 1638 (Ch) United States Surgical Corporation v Hospital Products International [1982] 2 NSWLR 766 Walker v Bowry (1924) 35 CLR 48; [1924] HCA 28 Yeshiva Properties No. 1 Pty Ltd v Marshall [2005] NSWCA 23 Texts Cited: A Gurr, "Accessory liability and contribution, release and apportionment" (2010) 34 MULR 481 D Hayton, P Matthews and C Mitchell, Underhill and Hayton Law of Trusts and Trustees (19th ed, 2016, LexisNexis) Halsbury's Laws of England (4th ed, vol 9) J D Heydon, M J Leeming and P G Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, 2015, LexisNexis Butterworths) L Tucker, N Le Poidevin and J Mowbray, Lewin on Trusts (19th ed, 2015, Thomson Reuters) P Birks and A Pretto (eds), Breach of Trust (2002, Hart Publishing) P Ridge, "Justifying the remedies for dishonest assistance" (2008) 124 LQR 445 S Elliott and C Mitchell, "Remedies for dishonest assistance" (2004) 67 MLR 16 Category: Principal judgment Parties: Edgewater Homes Pty Ltd (First Plaintiff/Respondent) Henley Arch Pty Ltd (Second Plaintiff/Respondent) David Donohoe (First Defendant/Applicant) Representation: Counsel: M A Ashhurst SC with D S Weinberger (Plaintiffs/Respondents) D R Pritchard SC with R D Glasson and A Macauley (First Defendant/Applicant)