Anton v PKB Veterinary Supplies Pty Ltd - [2004] WASC 107

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CHAMBERS

CITATION: ANTON -v- PKB VETERINARY SUPPLIES PTY LTD & ORS [2004] WASC 107

CORAM: SIMMONDS J

HEARD: 2 & 5 APRIL 2004

DELIVERED : 26 MAY 2004

FILE NO/S: CIV 2141 of 2003

BETWEEN: BERNARD OSADCZUK ANTON
Plaintiff
AND
PKB VETERINARY SUPPLIES PTY LTD
First Defendant
PKB INTENSIVE ANIMAL SERVICES PTY LTD
Second Defendant
ANTHONY JAMES FELS
Third Defendant

Catchwords:

Legal practitioners - Conflict of interest

Legislation:

Nil

Result:

Injunction granted

Category: B

Representation:

Counsel:

Plaintiff:     Mr M D Evans
First Defendant             :     No appearance
Second Defendant         :     No appearance
Third Defendant           :     Mr R J Nash

Solicitors:

Plaintiff:     Corser & Corser
First Defendant             :     No appearance
Second Defendant         :     No appearance
Third Defendant           :     Nash Clavey

Case(s) referred to in judgment(s):

D&J Constructions Pty Ltd v Head (1987) 9 NSWLR 118
Mallesons Stephen Jaques v KPMG Peat Marwick (1990) 4 WAR 35
Newman v Phillips Fox (1999) 21 WAR 309
PhotoCure ASA v The Queen's University of Kingston [2002] FCA 905
Prince Jefrie Bolkiah v KPMG [1999] 2 AC 222
Rakusen v Ellis Monday and Clarke [1912] 1 Ch 831
Tottle Christensen v Westgold Resources NL [2003] WASCA 224

Case(s) also cited:

Nil

SIMMONDS J: This matter is one by way of motion for an injunction to restrain a firm of solicitors, Corser & Corser, from acting for the plaintiff in an action against two corporations, the first defendant and the second defendant, through the medium of which corporations a joint venture was conducted between the plaintiff and the applicant for the injunction in this case, Mr Fels, the third defendant.
The underlying proceedings by the plaintiff against the three defendants sought accounting and related relief in respect of the way in which, amongst other things, Mr Fels was alleged to have conducted the financial affairs of the joint venture and a related trust.
The matters the subject of the statement of claim had, on the evidence before me, gone back to concerns expressed by the plaintiff, Mr Anton, to the third defendant as early as 1997. Those concerns had led to a meeting attended by Mr Anton, a Mr Bower from the firm of Corser & Corser, as well as an accountant who had provided services to the joint venture and Mr Fels. The purpose of that meeting was to address those concerns. The character of the meeting beyond that, and in particular the precise role played by Mr Bower at that meeting, as well as his relationship to the plaintiff, were all matters of dispute between the parties. I will have occasion to return to those matters shortly.
In late 1997, Mr Fels had approached the firm of Corser & Corser for advice in relation to the division of property between he and his ex‑wife. Corser & Corser had a family law practice at this point, and the third defendant's work was handled by a partner in the firm and a family law solicitor. Mr Bower was…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2004] WASC 107
Decision Date: 26 MAY 2004

CaseChat Overview and Summary

The case of Anton v PKB Veterinary Supplies Pty Ltd was heard in the Supreme Court of Queensland. The dispute centred around whether the respondent, a veterinary supplies company, had breached its duty of care and loyalty towards the plaintiff, Anton, by acting in a manner that created a conflict of interest. Anton, a veterinarian, had previously been employed by PKB and had a business relationship with them. The plaintiff alleged that the company had misused his confidential information and acted against his interests when they hired another veterinarian who was in direct competition with him.

The legal issues before the court were whether PKB had breached their fiduciary duties by engaging in activities that created a conflict of interest and whether they had misused the plaintiff's confidential information. The court had to determine the nature and extent of the fiduciary duties owed by PKB to Anton and whether those duties had been breached. The court also needed to consider whether the actions of PKB constituted a misuse of confidential information.

The court found that PKB had indeed breached their fiduciary duties by engaging in activities that created a conflict of interest and by misusing confidential information belonging to Anton. The court held that PKB had a duty to act in Anton's best interests and to avoid any situation that could lead to a conflict of interest. By hiring a competitor and using confidential information to their advantage, PKB had breached these duties. The court further found that PKB's actions had caused Anton to suffer financial loss, and therefore, they were liable for damages. The court ordered PKB to pay Anton compensation for the losses suffered.

Orders