Daily Banking: Wednesday, 7 October 2015 View in browser
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AR Conolly Company Lawyers.
A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.

Daily Banking

Executive Summary (One Minute Read)
Prestige Lifting Services Pty Ltd v Williams (FCA) - corporations - contract - equity - fiduciary duties - statutory duties - duty of confidence - knowing assistance - company’s claims established against former executive director, former employee and director of competitor
Pavlovic v Universal Music Australia Pty Ltd (NSWCA) - contract - separate questions - no binding agreement formed between parties - appeal allowed
Commonwealth Bank of Australia v ACN 076 848 112 Pty Ltd (NSWCA) - interlocutory appeal - corporations - principle of restraint - bank granted leave to appeal against refusal of access to respondent’s professional indemnity insurance
Neradovsky v Burnett (NSWSC) - professional negligence - solicitors’ duties - conflict of interest - solicitor breached duty causing harm to client - solicitor liable - contributory negligence 15%
In the Estate of Dare (Deceased) (SASC) - Wills and estates - succession - citations issued in respect of 2002 Will and informal codicil
Summaries With Link (Five Minute Read)
Prestige Lifting Services Pty Ltd v Williams [2015] FCA 1063
Federal Court of Australia
Beach J
Corporations - contract - equity - applicant (PLS) installed and maintained elevators - applicant claimed against former executive director (Williams), former employee (Hoffman), a competitor, TAG Cranes Pty Ltd (TAG) and director of TAG (Gardiner) - PLS claimed Williams and Hoffman breached fiduciary, contractual and statutory duties and duties of confidence - applicant claimed against Williams in respect of its funds used by Williams to meet unauthorised personal expenses and obligations - PLS claimed against TAG and Gardiner for knowing assistance in respect of Williams’ and Hoffman’s breaches of fiduciary duty and as persons involved in their breaches of statutory duty - TAG wound up and deregistered - PLS did not proceed with claim against TAG - Williams and Gardiner unrepresented - trial proceeded as unopposed matter concerning Williams and Gardiner - Hoffman defended proceedings and was represented - ss79, 181, 182, 183 & 1317H Corporations Act 2001 (Cth) - s140(2)(c) Evidence Act 1995 (Cth) - held: PLS established claims against Williams, Gardiner and Hoffman - parties to file and serve proposed minutes of orders and short submissions to give effect to reasons.
Prestige
Pavlovic v Universal Music Australia Pty Ltd [2015] NSWCA 313
Court of Appeal of New South Wales
Bathurst CJ, Beazley P & Meagher JA
Contract - separate questions - primary judge found appellants entered into binding agreement with first respondent on terms contained in deed of release despite fact that deed never executed by appellants, and that appellants did not lawfully terminate agreement - appellants appealed - subsequent conduct - authority of solicitor to bind client - actual or ostensible authority - previous dealings - held: first respondent’s contention there was binding agreement by exchange of emails was contrary to terms of Proposed Deed which provided agreement was to take effect upon execution - no intention other than formality of execution and exchange - no contract formed between parties - appeal allowed.
Pavlovic
Commonwealth Bank of Australia v ACN 076 848 112 Pty Ltd [2015] NSWCA 314
Court of Appeal of New South Wales
Basten JA; Emmett AJA
Interlocutory appeal - corporations - discovery - respondent was company subject to deed of company arrangement - respondent valued land proposed for residential development - applicant bank provided funding to developer - developer defaulted on loans - bank sued respondent for misleading and deceptive conduct - bank sought access to respondent’s professional indemnity insurance - Ball J refused to make order for production of documents - bank sought leave to appeal - s444E Corporations Act 2001 (Cth) - Pt 6, Div 1 Civil Procedure Act 2005 (NSW) - principle of restraint - held: balance of considerations favoured grant of leave to appeal and grant of leave under s444E - appeal to be listed with expedition.
Commonwealth
Neradovsky v Burnett [2015] NSWSC 1458
Supreme Court of New South Wales
Rothman J
Professional negligence - solicitors’ duties - conflict of interest - plaintiff client sued solicitor and legal firm (first and second defendants) for breach of duty of care - defendants acted for plaintiff in relation to real estate transaction to support loan regarding investments - plaintiff alleged defendants had conflict of interest as result of acting for and relationship with principal of company in which plaintiff investing who was also plaintiff’s financial adviser (Ms Percival) - s50 Civil Liability Act 2002 (NSW) - held: solicitor was in conflict situation on basis of financial dealings with Ms Percival and fiduciary relationship with her and her companies - proper course would have been to refuse to advise on any part of plaintiff’s arrangement with Ms Percival - solicitor breached duty - solicitor’s conduct necessary condition of damage or harm - appropriate for scope of solicitor’s liability to extend to harm caused - solicitor’s conduct would not be seen by peers as competent professional practice - plaintiff did not take reasonable care for own safety - contributory negligence assessed at 15% - judgment for plaintiff.
Neradovsky
In the Estate of Dare (Deceased)[2015] SASC 153
Supreme Court of South Australia
Gray J
Wills and estates - succession - deceased’s primary assets were parcels of land capital and assets of farming partnership - deceased left Will executed in 1997, a 2000 informal codicil and Will executed in 2002 - applicant son of deceased sought grant of probate in respect of 1997 Will and that Registrar of Probates issue citations in respect of informal codicil and 2002 will - whether Registrar empowered to issue citation to propound informal codicil - s3(1) Wills Act 1936 (SA) - ss4 & 8 Administration and Probate Act 1919 (SA) - held: term “will” included codicil under relevant legislation - no distinction to be drawn between will and codicil for purpose of issue of citations pursuant to r 55 Supreme Court Probate Rules 2004 (SA) - Registrar had power to issue citations in respect of 2002 will and codicil - citations to be issued.
Dare