Dentown Pty Ltd v PWI Group Pty Ltd as trustee of The Australia No. 1 Group Trust [2019] NSWSC 1032

Supreme Court New South Wales

Medium Neutral Citation: Dentown Pty Ltd v PWI Group Pty Ltd as trustee of The Australia No. 1 Group Trust [2019] NSWSC 1032 Hearing dates: 29–31 October, 1–2 & 5–9 November 2018; last written submissions received 7 March 2019. Decision date: 15 August 2019 Jurisdiction: Equity Before: Rees J Decision: Judgment for the plaintiffs: see [318] Catchwords: PARTNERSHIP AND JOINT VENTURE — Joint venture — Real estate business — Agreement for fixed term — Whether parties fiduciaries — Buyout —— Former venturer excluded but buyout agreement not performed — Appropriate remedies — Buyout specifically enforced.

CONTRACT — Formation — joint venture agreement — Partly evidenced by draft agreements — Relevance of post-contractual conduct — buyout agreement — effect of buyout agreement on obligations under joint venture agreement — Buyout agreement not performed — Whether damages inadequate — Buyout agreement specifically enforced.

CORPORATIONS — Directors' duties — director excluded from management — Whether oral resignation valid — Whether resignation agreed as part of buyout valid — Breach of continuing obligation under Corporations Act, s 183 — No loss to company or profit to director proved — No relief granted. Legislation Cited: Acts Interpretation Act 1901 (Cth), s 13 Australian Consumer Law, ss 18, 236 Civil Procedure Act 2005 (NSW), ss 21 56, 60, 100 Corporations Act 2001 (Cth), 180, 181, 182, 183, 191, 203A, 205A, 237, 1317H, 1318. Partnership Act 1892 (NSW), ss 5, 6, 9, 10, 11, 12, 24 Real Property Act 1900 (NSW), ss 74J, 74LA Uniform Civil Procedure Rules 2005 (NSW); rr 6.12, 20.14 Cases Cited: Aalders v Anzax Finance Australia Pty Ltd [2010] NSWSC 699 Ambridge Investments Pty Limited (in liq) (receiver appointed) v Baker [2010] VSC 59 Arambasic v Veza (No 5) [2014] NSWSC 1399 Bans Pty Ltd v Ling (1995) 36 NSWLR 435 Brambles Holdings Limited v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61 Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd [2019] NSWCA 87 Burke v LFOT Pty Ltd (2002) 209 CLR 282; [2002] HCA 17 C & S Constructions Pty Ltd v Dawson (1991) ATPR 41-148 Campana v State of Western Australia [2008] WASC 230 Celermajer Holdings Pty Limited v Kopas (2011) 16 BPR 30,735; [2011] NSWSC 40 Challenger Property Asset Management Pty Ltd v Stonnington City Council (2011) 34 VR 445; [2011] VSC 184 Chidiac v Maatouk [2010] NSWSC 386 Coulls v Bagot's Executor & Trustee Co Limited (1967) 119 CLR 460; [1967] HCA 3 Creamoata Ltd v The Rice Equalization Association Ltd (1953) 89 CLR 286; [1953] HCA 40 CSR Investments Pty Ltd v Alcan Northern Territory Alumina Pty Ltd [2003] NSWSC 1137 Degman Pty Ltd (in liq) v Wright [1983] 2 NSWLR 348 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423; [1978] HCA 12 Equititrust Ltd v Franks (2009) 258 ALR 388; [2009] NSWCA 128 Feldman v GNM Australia Limited [2017] NSWCA 107 Gibson Motorsport Merchandise Pty Limited v Forbes [2005] FCA 749 Haller v Ayre [2005] 2 Qd R 410; [2005] QCA 224 Hancock Prospecting Pty Ltd v Wright Prospecting Pty Ltd (2012) 45 WAR 29; [2012] WASCA 216 In the matter of Aero Marine Consulting Pty Ltd (2003) 133 FCR 1; [2003] FCA 1016 In the matter of Colorado Products Pty Limited (in prov liq) (2014) 101 ACSR 233; [2014] NSWSC 789 In the matter of IMO Donkey Wheel Ltd [2017] VSC 462 In the matter of Ji Woo International Education Centre Pty Limited [2016] NSWSC 1060 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Krajovska v Krajovska [2011] NSWSC 903 Lord v Direct Acceptance Corp Ltd (in liq) (1993) 32 NSWLR 362 Lym International Pty Limited v Marcolongo (2011) 15 BPR 29,465; [2011] NSWCA 303 Macquarie Developments Pty Limited v Forrester [2005] NSWSC 674 Martech International Pty Ltd v Energy World Corporation Ltd (2007) 248 ALR 353; [2007] FCAFC 35 Masters v Cameron (1954) 91 CLR 353; [1954] HCA 72 McDermott v Black (1940) 63 CLR 161; [1940] HCA 4 Miller & Associates v BMW Australia Finance Limited (2010) 241 CLR 357; [2010] HCA 31 Murphy v Zamonex Pty Ltd (1993) 32 NSWLR 439 Mushroom Composters Pty Limited v IS & DE Robertson Pty Limited [2015] NSWCA 1 New Galaxy Investments Pty Ltd v Thomson (2017) 18 BPR 36,811; [2017] NSWCA 153 Ogilvie v Adams [1981] VR 1,041 Paal Wilson & Co. A/S v Partenreederei Hannah Blumenthal [1983] 1 AC 854 Queensland Phosphate Pty Limited v Korda and Shepard (as joint and several liquidators of Legend International Holdings Inc (in liq)) [2017] VSCA 269 Rawson v Samuel (1841) Cr & Ph 154; (1841) 41 ER 451 Re Wave Capital Limited (2003) 47 ACSR 418; [2003] FCA 969 Reinhold v New South Wales Lotteries Corporation (No 2) (2008) 83 NSWLR 762; [2008] NSWSC 187 Ronchi v Portland Smelter Services Ltd [2005] VSCA 83 RTS Ltd v Molkerei Alois Müller GmbH & Co KG [2010] 1 WLR 753; [2010] UKSC 14 Sanders v Snell (1998) 196 CLR 329; [1998] HCA 64 Sino-Resource Imp & Exp Co Ltd v Oakland Investment Group Ltd [2018] QSC 98 Skinner v Redmond Family Holidays Pty Limited (2017) 123 ACSR 593; [2017] NSWCA 329 Tadrous v Tadrous [2012] NSWCA 16 Thompson v White (2006) 13 BPR 24,537; [2006] NSWCA 350 United Dominions Corp Limited v Brian Pty Limited (1985) 157 CLR 1; [1985] HCA 49 Wheatley v Kavanagh (2018) 19 BPR 38,691; [2018] NSWSC 1359 Yacoub v Commissioner of Taxation (2012) 292 ALR 128; [2012] FCA 678 Zagame v Zagame [2014] NSWSC 1302 Texts Cited: Austin, Ford and Ramsay, Company Directors, Principles of Law and Corporate Governance (LexisNexis, looseleaf) Lindley & Banks on Partnership (20th ed., Sweet & Maxwell, 2017) Pearce and Geddes, Statutory Interpretation in Australia, (8th ed, LexisNexis 2014) Practice Note SC Gen 16 WD Duncan, ed., Joint Ventures Law in Australia (3rd ed., Federation Press, 2012) Wigmore on Evidence (3rd ed., 1940) Category: Principal judgment Parties: Dentown Pty Ltd ACN 138 476 141 (First Plaintiff & First Cross-defendant) Desheng Wang (Second Plaintiff & Second Cross-defendant) Juan Ma (Fourth Cross-defendant)