AARDWOLF INDUSTRIES LLC v RIAD TAYEH [2020] NSWSC 299

Supreme Court New South Wales

Medium Neutral Citation: AARDWOLF INDUSTRIES LLC v RIAD TAYEH [2020] NSWSC 299 Hearing dates: 27 August 2019 Date of orders: 26 March 2020 Decision date: 26 March 2020 Jurisdiction: Equity - Corporations List Before: Rees J Decision: Refuse leave to sue liquidators Catchwords: CORPORATIONS — leave to sue Court appointed liquidator — principles at [81]-[89] – unfunded liquidators – directors initially uncooperative – directors said companies had no assets and dormant – directors through other corporate entities apply to register trade marks of companies in liquidation – director signs letter on behalf of company in liquidation consenting to new corporate entity acquiring trade mark rights – director accused of 'phoenixing' – director does not inform liquidator that companies in liquidation abandoned trade mark rights and other corporate entities acquired those rights through usage and oral assignment – liquidator assigns trade mark rights to petitioning creditor and plaintiffs' competitor – international trade mark war – plaintiffs application for trade mark initially unsuccessful – liquidation ends – plaintiffs later establish abandonment in other proceedings - complaint made years after completion of liquidation and deregistration of companies – leave refused

INTELLECTUAL PROPERTY – trade marks – abandonment – principles at [45]-[47]

NEGLIGENCE – liquidator's duty to third parties – principles at [97]-[103] – vulnerability – no vulnerability here

AUSTRALIAN CONSUMER LAW – whether liquidator engaged 'in trade or commerce' – principles at [113]-[118] – reliance by third party – poor prospects Legislation Cited: Australian Consumer Law, ss 2, 18, 236 Civil Liability Act 2002 (NSW), s 5D(3)(b) Corporations Act 2001 (Cth), ss 472, 475, 477(2)(c), 530A, 530A(3), 530A(6A) Trade Marks Act 1995 (Cth), ss 17, 20, 21, 27(1), 44(1), 44(3), 44(4), 45, 52(1), 58, 72(3), 76, 78, 79, 92(4)(b), 95(2), 106, 107, 113, 215 Trade Marks Regulations 1995 (Cth), regs 9.6, 21.15(4) Cases Cited: Aardwolf LLC v Aardwolf Industries Sole Member LLC, et al. (case no. CV 14-9556-GW(JEMx)) Abaco Machines (Australasia) Pty Limited v Aardwolf Australia Pty Limited [2015] ATMO 55; (2015) 114 IPR 204 Amcor Ltd v Peter J Ramsay and Associates Pty Ltd [2018] VSC 75 Anglo Coal (Dawson Management) Pty Limited v Greig [2011] FCA 941 Aobao International Pty Ltd v Action North American, Inc (2018) 143 IPR 358; [2018] ATMO 133 Armitage v Gainsborough Properties Pty Ltd [2011] VSC 419 Ausmart Services Pty Ltd (In Liq) v Zheng [2019] FCA 2162 Baxter v Hamilton (2005) 15 Tas R 59; [2005] TASSC 64 Bing! Software Pty Ltd v Bing Technologies Pty Ltd (No 1) (2008) 79 IPR 454; [2008] FCA 1760 Cmr of Taxation v Iannuzzi (No 2) [2019] FCA 1818 Concrete Constructions (NSW) Pty Ltd v Nelson [1990] HCA 17; (1990) 92 ALR 193; (1990) 169 CLR 594 du Boulay v Worrell [2009] QCA 63 Eighty Second Agenda Pty Ltd v Handberg [2014] VSC 665; (2014) 32 ACLC 14-081 Elias v Alloha Formwork & Construction Pty Ltd [2017] NSWSC 1546 EOS Australia Pty Limited v Expo Tomei Pty Limited (1998) 42 IPR 277 Finishing Services Pty Ltd v Lactos Fresh Pty Ltd (2007) ANZ ConvR 93; [2006] FCAFC 177 Hampic Pty Ltd v Adams (2000) ATPR 41-737; [1999] NSWCA 455 Hanave Pty Ltd v LFOT Pty Ltd [1999] FCA 357; (1999) 43 IPR 545; (1999) ATPR 41-687 Hoath v Connect Internet Services Pty Ltd (2006) 229 ALR 566; [2006] NSWSC 158 Houghton v Arms [2006] HCA 59; (2006) 225 CLR 553 In the matter of Metal Storm Ltd (in liq) (receivers and managers appointed) (No 2) [2019] NSWSC 1682 Janssen-Cilag Pty Ltd v Pfizer Pty Ltd (1992) 109 ALR 638; (1992) 37 FCR 526 King Par LLC v Brosnan Golf Pty Limited [2014] FCA 795; (2014) 106 IPR 457 Macks v Viscariello (2017) 130 SASR 1; (2017) 353 ALR 201; [2017] SASCFC 172 Malibu Boats West Inc v Catanese [2000] FCA 1141; (2000) 51 IPR 134, 146-7 Mamone v Pantzer [2001] NSWSC 26; (2001) 36 ACSR 743 Marcus v Sabra International Pty Limited (1995) 30 IPR 261 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 Matrix Group Limited (in liq) (Trustee) v Oates (No 4) (2018) 124 ACSR 185; [2018] FCA 22 McCarthy v McIntyre [1999] FCA 784 McDonald v Dare [2001] QSC 405 Mike Gaffikin Marine Pty Ltd v Princes Street Marina Pty Ltd (1995) 17 ACSR 495; (1995) 122 FLR 294 Mills v Sheahan (2007) 99 SASR 357; (2007) 214 FLR 367; [2007] SASC 365 Mouson & Co v Boehm (1884) 26 Ch D 398 Nguyen v Aardwolf Australia Pty Limited (2017) 130 IPR 209; [2017] ATMO 63 Perpetual Nominees Ltd v McGoldrick & Anor (No 3) (2017) 317 FLR 227; (2017) 120 ACSR 32 Perpetual Trustee Company Ltd v Ishak [2012] NSWSC 697 Perre v Apand (1999) 198 CLR 180 Pritchard v Racecage Pty Ltd (1997) 142 ALR 527; (1997) 72 FCR 203 Probuild Constructions (Aust) Pty Limited v Shade Systems Limited [2018] NSWSC 540 Re "GE" Trade Mark [1972] 1 WLR 729; (1972) 1B IPR 543 Re Biposo Pty Ltd; Condon v Rodgers (1995) 13 ACLC 1271; (1995) 120 FLR 399 Re Siromath Pty Ltd (No 1) (1991) 9 ACLC 1580 Re St Gregory's Armenian School (in liq) [2012] NSWSC 1215; (2012) 92 ACSR 588 Riv-Oland Marble Co (Vic) Pty Limited v Settef Spa (1988) 19 FCR 569, 571-2; (1998) 12 IPR 321; (1988) AIPC 90-517 Seaman v Silvia [2018] FCA 97 Sydlow Pty Ltd (in liq) v TG Kotselas Pty Ltd (1996) 144 ALR 159; (1996) 65 FCR 234 Woolcock Street Investments Pty Ltd v CDG Pty Ltd (2004) 216 CLR 515; (2004) 205 ALR 522; [2004] HCA 16 Texts Cited: Mark Davison and Ian Horak, Shanahan's Australian Law of Trade Marks and Passing Off (5th ed, 2012 Thomson Reuters) Robert Burrell and Michael Handler, Australian Trade Mark Law (2nd edition, 2016, Oxford University Press) Category: Principal judgment Parties: Aardwolf Industries LLC (First Plaintiff) Aardwolf Australia Pty Limited (Second Plaintiff) Riad Tayeh (First Defendant) Antony Anne de Vries (Second Plaintiff) Representation: Counsel: Mr MJ Galvin QC / Mr S Dyrenfurth (Plaintiffs) Mr TW Marskell (Defendants)