| IN THE SUPREME COURT OF VICTORIA | Not Restricted |
AT MELBOURNE
COMMERCIAL COURT
CORPORATIONS LIST
S ECI 2016 01184
| RENEE SUSAN BLACK | Plaintiff |
| v | |
| R & M TRADERS PTY LTD (ACN 601 602 126) AND OTHERS (according to the schedule) | Defendant |
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JUDGE: | RANDALL AsJ |
WHERE HELD: | Melbourne |
DATE OF HEARING: | 20 November 2017 |
DATE OF JUDGMENT: | 14 September 2018 |
CASE MAY BE CITED AS: | Black v R & M Traders & Ors |
MEDIUM NEUTRAL CITATION: | [2018] VSC 527 |
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CORPORATIONS – Corporations Act2001 (Cth), s 233 – Oppression – Relief sought was a wind up – Alternative relief, a buyout – Proceeding compromised save as to costs by agreement to wind up the first defendant – Costs – Costs where no adjudication – Principles – Offer of Compromise – Civil Procedure Act 2010 (Vic), ss 22, 24, 28 and 29 – Conduct of the parties.
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APPEARANCES: | Counsel | Solicitors |
| For the Plaintiff | Mr M Bromley | RB Legal Pty Ltd |
| For the Defendants | Mr J Mason | MST Lawyers |
TABLE OF CONTENTS
The plaintiff’s position...................................................................................................................... 2
The defendants’ position.................................................................................................................. 2
The relevant offers............................................................................................................................. 2
Background......................................................................................................................................... 3
Applicable principles........................................................................................................................ 8
Civil Procedure Act 2010................................................................................................................. 17
Determination................................................................................................................................... 18
HIS HONOUR:
The plaintiff, by her originating process filed 29 August 2016, sought relief relevantly as follows:
A.An order that the first defendant (‘R & M Traders’) be wound up.
B.In the alternative to A, orders that the second and the third defendants (or one them) purchase the shares of the plaintiff in the first defendant, at a price to be determined by the Court.
The grounds relied upon were the oppression grounds under ss 233 and under 461(1)(e), 461(1)(f) and 461(1)(k) of the Corporations Act 2001 (Cth) (‘the Act’).
The plaintiff, Ms Renee Susan Black, is a director and shareholder of R & M Traders. The plaintiff is the owner of 25.5% of the issued shares in R & M Traders.[1]
[1]Affidavit in support of Originating Process sworn 26 August 2016 [1]-[3].
In or around October 2014, R & M Traders commenced operating the Dandenong store branded under the ‘Dimmeys’ name. In September 2015, R & M Traders took over the operations of the Forest Hill Dimmeys store.
The plaintiff alleges that from around September 2015, the second and third defendants began isolating and excluding her from the decision making in the two stores, including denying her access to the financial information of R & M Traders and forcing her to stop working at one of the stores. The plaintiff also contended that she was prevented from using her company owned car.[2] It is of note that allegations were made against the third defendant’s husband, Doug Zappelli. However, during the relevant time, Doug Zappelli had been banned from managing a corporation. At its highest he might have been considered a shadow director of R & M Traders.
[2]Ibid [6]-[9].
The final hearing was scheduled for 20 November 2017. On 16 November 2017, the parties advised the Court that orders by consent would be sought…
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- AGLC
- Black v R and M Traders [2018] VSC 527
- Case
- [2018] VSC 527
- Decision Date
CaseChat Overview and Summary
The central legal issue was the determination of the costs incurred during the winding-up proceedings and the subsequent compromise. Given that the proceedings were compromised without a formal adjudication, the court needed to consider the principles governing costs in such circumstances. The court also had to examine the offer of compromise under the Civil Procedure Act 2010 (Vic), specifically sections 22, 24, 28, and 29, to determine the appropriate costs to be awarded.
In reaching its decision, the court applied the principles of cost assessment in the absence of a formal adjudication. It considered the conduct of the parties throughout the proceedings, including the offer of compromise and the subsequent agreement to wind up the company. The court concluded that the offer of compromise and the circumstances surrounding the compromise were relevant in determining the appropriate costs. The court awarded costs based on the principles of fairness and the conduct of the parties during the proceedings. The final orders reflected the court’s assessment of the costs incurred and the appropriate allocation between the parties.
Orders
Orders of the court
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Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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