ABL Custodian Services Pty Ltd v Smith

ABL Custodian Services Pty Ltd brought an action against Smith in the Supreme Court of Victoria, seeking the return of funds which had been mistakenly transferred to Smith's account. Smith denied liability and argued that the pleading was bad in law. Smith applied to have the statement of claim struck out on the basis that it failed to properly plead a cause of action and was uncertain in its legal basis.

The legal issues in the case centred on whether the statement of claim sufficiently pleaded a cause of action in restitution and whether it was permissible to plead a claim in restitutionary unjust enrichment when the plaintiff had assigned its rights in relation to the claim. The court considered the relevant legal principles, including the cases of Commonwealth v Verwayen, Haxton v Equuscorp Pty Ltd, and David Securities Pty Ltd v Commonwealth Bank of Australia. The court examined the requirements for pleading a restitutionary claim and whether it was necessary to specify the precise category of unjust enrichment relied upon.

The court held that the statement of claim was not bad in law and could be amended to remedy any defects. The court found that it was not necessary to specify the precise category of unjust enrichment relied upon, as long as the statement of claim set out sufficient facts to enable the defendant to understand the claim and respond to it. The court also held that it was permissible to plead a claim in restitutionary unjust enrichment when the plaintiff had assigned its rights in relation to the claim. The court therefore dismissed Smith's application to strike out the statement of claim and ordered that the plaintiff be given an opportunity to amend the statement of claim.

The court ordered that the defendant be given 21 days from the date of the judgment to amend the statement of claim, and that the defendant file and serve any amended statement of claim within that time. The court also ordered that the parties confer and attempt to reach agreement on the terms of any amendment to the statement of claim, and that if they were unable to reach agreement, the parties file written submissions on the appropriate terms of any amendment.