Benchmark
A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
Benchmark

Banking

Monday, 15 December 2014

Executive Summary (One Minute Read)
Banks v Alphatise Pty Ltd (NSWSC) - pleadings - corporations - leave to amend statement of claim - strike-out application refused
In the matter of Elsmore Resources Ltd (NSWSC) - failure to comply with order to pay security for costs - motion for dismissal of proceedings adjourned
Monadelphous Engineering Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd (QCA) - equity - no error in refusal to grant interlocutory injunction restraining respondent from calling on bank guarantees - appeal dismissed
Fletcher v Fortress Credit Corporation (Australia) II Pty Ltd (QSC) - discovery - legal professional privilege - certain documents to be produced for inspection
McInnes v Davies (SASC) - contract for sale of residential property - caveat extended until purchaser's claim for specific performance of contract determined
Electricity Generation and Retail Corporation t/as Synergy v Woodside Energy Ltd (WASC) - commercial arbitration - sale and purchase agreement - leave to appeal from arbitral award fixing gas price refused
Summaries With Link (Five Minute Read)
Banks v Alphatise Pty Ltd [2014] NSWSC 1437
Supreme Court of New South Wales
Brereton J
Pleadings - corporations - plaintiff sued defendants for relief arising out of agreement between first defendant and plaintiff - plaintiff alleged first defendant did not perform agreement - alternatively, plaintiff alleged term of agreement amounted to representation as to future matter which was misleading and deceptive because first defendant did not have reasonable grounds for making it - sole case against second defendant was that he was knowingly concerned in making of misrepresentation - second defendant sought dismissal of proceedings against him or that paragraphs of statement of claim be struck out - original statement of claim did not contain distinct allegation that second defendant knew first defendant did not have reasonable grounds for making representation - held: facts from which it was contended an inference of actual knowledge should be drawn were not required to be pleaded - leave to amend statement of claim granted - strike out application refused.
Banks
In the matter of Elsmore Resources Ltd [2014] NSWSC 1687
Supreme Court of New South Wales
Robb J
Security for costs - third defendant sought dismissal of plaintiff's claim against him because plaintiff failed to comply with order that it provide security for costs - held: plaintiff had not provided security as required by orders - effect of orders was that proceeding was stayed - third defendant had demonstrated that continuation of proceedings against him was likely to cause continuing damage to his reputation - in the circumstances, not appropriate to make order for dismissal - equally inappropriate to dismiss notice of motion - qualms flowed from inadequate notice given to plaintiff - possibility that lack of notice contributed to any misjudgment made by plaintiff may be resolved by plaintiff being given short additional time to provide security for costs - motion adjourned.
In the matter of Elsmore Resources Ltd
Monadelphous Engineering Pty Ltd v Wiggins Island Coal Export Terminal Pty Ltd [2014] QCA 330
Court of Appeal of Queensland
Muir, Fraser & Morrison JJA
Equity - primary judge refused application by appellants for interlocutory injunction to restrain respondent from calling on bank guarantees supplied by appellants under two contracts and seeking return of bank guarantees - primary judge held there was no serious question to be tried and that interlocutory injunction should be refused because damages were an adequate remedy - held: interlocutory injunction refused in relation to one contract - serious question to be tried whether other contract was a building contract as defined in s67AAA(1) Queensland Building and Construction Commission Act 1991 (Qld) - serious question to be tried whether appellants entitled to injunction restraining respondent from having recourse to guarantees - no evidence that refusal of an interlocutory injunction would cause material harm to appellant - primary judge did not err in refusing to grant an interlocutory injunction - appeal dismissed.
Monadelphous Engineering Pty Ltd
Fletcher v Fortress Credit Corporation (Australia) II Pty Ltd [2014] QSC 303
Supreme Court of Queensland
P McMurdo J
Discovery - legal professional privilege - plaintiffs sued defendants alleging breaches of statutory and fiduciary duties arising out of collapse of group of companies - plaintiffs sought production of documents disclosed by Fortress defendants - defendants claimed legal professional privilege over documents - rr5, 166(3) & 213 Uniform Civil Procedure Rules 1999 (Qld) - dominant purpose - sufficiency of proof of claim for privilege - held: requisite purpose established in relation to documents - plaintiffs did not establish a prima facie case of an impropriety on the part of Fortress as to make it right to deprive it of legal professional privilege in documents relevant to certain transaction - certain documents to be produced for inspection.
Fletcher
McInnes v Davies [2014] SASC 184
Supreme Court of South Australia
Stanley J
Contract - sale of residential property - contract subject to condition that purchaser obtain finance by certain date, which did not occur - vendors sent email to agent enclosing signed termination notice addressed to purchaser with instruction to return purchaser's deposit - notice not given at that time nor was deposit returned - bank emailed vendors' agent copy of letter to purchaser advising finance approved - on same day vendors executed contract with third party to purchase property - purchaser asserted at date of bank's letter contract still on foot and had become unconditional - purchaser lodged caveat over property and sought specific performance of contract and extension of caveat - District Court rejected application pursuant to ss191G and/or 191K Real Property Act 1886 (SA) to extend caveat over land until purchaser's claim for specific performance of contract was determined at trial - held: no dispute that purchaser had caveatable interest in property - nothing in purchaser's conduct justified judge in depriving him of protection of caveat pending trial of action - judge's conclusion that balance of convenience did not favour extending caveat was failure to properly exercise discretion - appeal allowed.
McInnes
Electricity Generation and Retail Corporation t/as Synergy v Woodside Energy Ltd [2014] WASC 469
Supreme Court of Western Australia
Martin CJ
Commercial arbitration - buyer sought leave to appeal from an arbitral award fixing price at which gas will would be sold to buyer by sellers pursuant to provisions of sale and purchase agreement - leave to appeal sought on ground there were manifest errors of law on the face of the award which could substantially affect buyer's rights - construction of provision of agreement - adequacy of reasons - ss29, & 38 Commercial Arbitration 1985 (WA) - held: buyer failed to establish any error of law manifest on the face of the award - application for leave to appeal refused.
Electricity Generation and Retail Corporation t/as Synergy