Asden Developments Pty Ltd (in liq) v Dinoris (No 4)

[2016] FCA 1001

FEDERAL COURT OF AUSTRALIA

Asden Developments Pty Ltd (in liq) v Dinoris (No 4) [2016] FCA 1001

File number:	QUD 578 of 2014
Judge:	REEVES J
Date of judgment:	19 August 2016
Date of hearing:	Determined on the papers
Date of last submissions:	11 August 2016
Registry:	Queensland
Division:	General Division
National Practice Area:	Commercial and Corporations
Sub-area:	Corporations and Corporate Insolvency
Category:	No Catchwords
Number of paragraphs:	5
Counsel for the Applicant:	Mr M Martin QC
Solicitor for the Applicant:	Mills Oakley Lawyers
Counsel for the Respondents:	Mr I Erskine
Solicitor for the Respondents:	HBM Lawyers

ORDERS

QUD 578 of 2014

BETWEEN:

ASDEN DEVELOPMENTS PTY LTD (IN LIQUIDATION) ACN 115 851 833

Applicant

AND:

PETER DINORIS

First Respondent

NICK COMBIS

Second Respondent

JUDGE:	REEVES J
DATE OF ORDER:	19 AUGUST 2016

THE COURT ORDERS THAT:

1.The originating application filed on 5 November 2014 is dismissed.

2.The applicant pay the first and second respondents’ costs of this proceeding, including reserved costs.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

REEVES J:

1. The primary object of any litigant when commencing proceedings in a court of law is to obtain relief. In this case Asden Developments Pty Ltd (in liquidation) sought two forms of relief: a declaration under s 1317E(1)(a) of the Corporations Act 2001 (Cth) and an order for compensation under s 1317H.

2. It has conceded that, in the circumstances, s 1317E(4) prevents it from seeking the former and it has failed to establish its case for the latter.

3. Along the way it has had a measure of success on one component of its breach of duty claim, namely that Mr Dinoris breached his duty under s 180 by failing to make enquiries of Ms Nichols about the transfer of the funds.  However, it failed on all other aspects, including the other component of its breach of duty claim.

4. In all the circumstances, I do not therefore consider that the success it has had justifies a departure from the usual rule that costs should follow the event.

5. Accordingly, I order that Asden Developments Pty Ltd (in liquidation) pay Mr Dinoris and Mr Combis’ costs of this proceeding.

I certify that the preceding five (5) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Reeves.

Associate:        

Dated:        19 August 2016