In the matter of Punters Show Pty Limited [2019] NSWSC 1777

Supreme Court New South Wales

Medium Neutral Citation: In the matter of Punters Show Pty Limited [2019] NSWSC 1777 Hearing dates: 26 & 28 February 2019 Decision date: 13 December 2019 Jurisdiction: Equity - Corporations List Before: Rees J Decision: 1. Dismiss the Originating Process filed on 17 November 2016.

2. Order the plaintiffs to pay the defendants' costs of the proceedings. Catchwords: CORPORATIONS — Directors' duties — Circumstances in which duties owed directly to shareholders — Where proposed strategic alliance between company and larger company — Where sole director and minority shareholder was responsible for day-to-day management — No facts giving rise to fiduciary duty directly to shareholders — No breach in any case.

EQUITY — Equitable remedies — Rule in Barnes v Addy — Liability alleged under both first and second limbs of Barnes v Addy — No evidence that company property retained by third party — No evidence of dishonest and fraudulent design — No evidence of requisite knowledge — No loss — Claim dismissed.

CONTRACT — Formation — Whether contract formed in terms alleged by plaintiffs — Agreement to pay fixed sum as part of broader arrangement — Arrangement never concluded — Fixed sum not referable to any particular services — No concluded contract on terms alleged — No issue of principle — Money claim not made out.

CONTRACT — Formation — Estoppel — Whether defendants estopped from denying existence of obligation to pay — Elements of equitable estoppel not made out — Estoppel pleaded in aid of flawed claim in contract — No factors warranting equitable relief — No issue of principle. Legislation Cited: Evidence Act 1995 (NSW), s 140 Cases Cited: Antov v Bokan [2018] NSWSC 1474 Baden v Société Générale pour Favoriser le Développement du Commerce et de l'Industrie en France SA [1993] 1 WLR 509 Barnes v Addy (1874) LR 9 Ch App 244 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Brunninghausen v Glavanics (1999) 46 NSWLR 538; [1999] NSWCA 199 Construction Technologies Australia Pty Ltd v Doueihi (2014) 17 BPR 33,457; [2014] NSWSC 1717 DHJPM Pty Ltd v Blackthorn Resources Ltd (2011) 83 NSWLR 728; [2011] NSWCA 348 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Hancock Family Memorial Foundation Ltd v Porteous (1999) 32 ACSR 124; [1999] WASC 55 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Hospital Products Ltd v United States Surgical Corporations (1984) 156 CLR 41; [1984] HCA 64 Kalls Enterprises Pty Ltd (in liq) v Baloglow (2007) 63 ACSR 557; [2007] NSWCA 191 Maguire v Makronis (1997) 188 CLR 449; [1997] HCA 23 Manassen Holdings Pty Ltd v Commercial & General Corp Pty Ltd [2019] SASC 171 McCrohon v Harith [2010] NSWCA 67 O'Conner v O'Conner [2018] NSWCA 214 Saleh v Romanous (2010) 79 NSWLR 453; [2010] NSWCA 274 Simmons v New South Wales Trustee and Guardian (2014) 17 BPR 33,717; [2014] NSWCA 405 Waltons Stores (Interstate) Ltd v Maher (1988) 164 CLR 387; [1988] HCA 7 Yanner v Eaton (1999) 201 CLR 351; [1999] HCA 53 Texts Cited: Australian Securities Exchange, ASX Listing Rules: Guidance Note 1 (2019) Australian Securities Exchange, ASX Listing Rules: Guidance Note 12 (2019) JD Heydon & MJ Leeming, Jacobs' Law of Trusts in Australia (8th ed., LexisNexis, 2016) Category: Principal judgment Parties: Marc Alan Lambourne (First Plaintiff) Glenn Craig Pollett (Second Plaintiff) Punters Show Pty Limited ACN 142 950 016 (Third Plaintiff)