Daily Banking: Wednesday, 10 February 2016
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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)
Ehrenfeld v Zeng (NSWCA) - trusts - corporations - contract - respondents entitled to recover from appellant amount paid out of trust account - appeal dismissed
Stankovic v Hockey (NSWSC) - professional negligence - solicitors’ duties - no breach of duty by solicitor - proceedings dismissed
Amaca Pty Ltd v Moir (NSWSC) - cross-vesting - proceedings commenced in Dust Diseases Tribunal of New South Wales transferred to Supreme Court of Queensland
Westpac Banking Corporation v Chamberlain (SASC) - real property - possession - any claim which owners of mortgaged property might have had on basis of native title extinguished - mortgagee granted order for possession
Cauldron Energy Ltd v Beijing Joseph Investment Co Ltd (WASC) - contract - share placement agreements - plaintiff entitled to recover contractual debts and to damages for wasted expenditure - claim for interference with contractual relations failed
JLLJ Nominees Pty Ltd v Conspect Construction Pty Ltd [No 2] (WASC) - costs - corporations - non-party costs order granted against director of fourth defendant company
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Summaries With Link (Five Minute Read)
Ehrenfeld v Zeng [2016] NSWCA 6
Court of Appeal of New South Wales
Macfarlan & Gleeson JJA; Emmett AJA
Trusts - corporations - contract - dispute arising from project which failed to reach fruition - project involved acquisition of company which was to acquire quarry and publish prospectus for proposed issue of shares to recapitalise it - respondent and associates contended that payments made out of an account controlled by fourth respondent in accordance with appellant’s instructions were made in breach of trust - respondent and associates claimed reimbursement from fourth and fifth respondent and from appellant and associated entities - primary judge found in favour of respondents - whether breach of contract and breach of trust - procedural fairness - natural justice - validity of prospectuses - Sch 2 Competition and Consumer Act 2010 (Cth) - s719 Corporations Act 2001 (Cth) - held: appellant failed to make out any grounds of appeal - appeal dismissed.
Ehrenfeld
Stankovic v Hockey [2016] NSWSC 31
Supreme Court of New South Wales
Harrison J
Professional negligence - solicitors’ duties - bankruptcy - plaintiff client sued former solicitor for professional negligence and breach of retainer in relation to proceedings which followed sequestration of plaintiff’s estate - plaintiff alleged solicitor acted without instructions and that dismissal of application for annulment was arranged or consented to by defendant without authorisation - plaintiff claimed losses in amount of $35M - held: plaintiff failed to demonstrate breach of duty by defendant - no evidence of claimed losses - proceedings dismissed.
Stankovic
Amaca Pty Ltd v Moir [2016] NSWSC 35
Supreme Court of New South Wales
Davies J
Cross-vesting - Amaca sought to have proceedings commenced against it in Dust Diseases Tribunal of New South Wales transferred to Supreme Court of Queensland under ss8 & 5 Jurisdiction of Courts (Cross-vesting) Act 1987 (NSW) - held: worker domiciled in Queensland - disease incurred while working in Queensland - doctors who had examined plaintiffs located in Queensland - no connection of proceedings with New South Wales - natural forum was Queensland particularly because place of tort was Queensland - in interests of justice that proceedings be transferred to Supreme Court of Queensland.
Amaca
Westpac Banking Corporation v Chamberlain [2016] SASC 3
Supreme Court of South Australia
Judge Dart
Real property - possession - loans and mortgages - native title - plaintiff registered mortgagee of land owned by defendants sought order for possession pursuant to s192 Real Property Act 1886 (SA) - defendants alleged they had superior title to plaintiff’s on basis of native title - Law of Property Act 1936 (SA) - s23B Native Title Act 1993 (Cth) - consideration of parent title - whether any claim which defendants might have had was extinguished - held: native title had been extinguished - no arguable defence made out by defendants - order for possession granted.
Westpac Banking Corporation
Cauldron Energy Ltd v Beijing Joseph Investment Co Ltd [2016] WASC 22
Supreme Court of Western Australia
Mitchell J
Contract - inducement of breach of contract - Cauldron Energy was plaintiff by counter-claim (plaintiff) - Cauldron Energy entered agreements with defendants by counterclaim (defendants) and company ‘Guangzhou Joseph’ for placement of shares in plaintiff - plaintiff sought to recover subscription sums payable by defendants under agreements and to recover wasted expenditure for obtaining shareholder approval - plaintiff also claimed defendants induced or procured defendant and Guangzhou Joseph to breach agreements - ss606, 607, 611 & 1041 Corporations Act 2001 (Cth) - O 20, r14, O 34, r4 Rules of the Supreme Court 1971 (WA) - held: subscription sums payable under agreements - plaintiff entitled to recover contractual debts and damages for wasted expenditure - tortious claim for interference with contractual relations failed.
Cauldron
JLLJ Nominees Pty Ltd v Conspect Construction Pty Ltd [No 2] [2016] WASC 21
Supreme Court of Western Australia
Master Sanderson
Costs - corporations - plaintiff sought non-party costs order against director of fourth defendant - whether party to litigation insolvent or man of straw - whether non-party played active role in litigation’s conduct - whether non-party had interest in litigation - held: first second third and fourth defendants all insolvent - director played active role in litigation and had an interest in the litigation - director ordered to pay costs.
JLLJ