Blakeney v Blakeney

Case [2016] WASCA 76


BLAKENEY -v- BLAKENEY [2016] WASCA 76



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2016] WASCA 76
THE COURT OF APPEAL (WA)
Case No:CACV:60/201515 FEBRUARY 2016
Coram:BUSS JA
MURPHY JA
BEECH J
12/05/16
26Judgment Part:1 of 1
Result: Appeal upheld
Master's orders set aside
Application for leave to bring proceedings dismissed
B
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Parties:TIMOTHY CHARLES BLAKENEY
BLAKENEY'S TRANSPORT EARTHMOVING AND CRANE HIRE PTY LTD
WILLIAM LESLIE BLAKENEY

Catchwords:

Corporations
Derivative actions
Whether it is in company's best interests for leave to be granted to director to bring proceedings
Turns on own facts

Legislation:

Corporations Act 2001 (Cth), s 236, s 237, s 241

Case References:

Blakeney v Blakeney [2015] WASC 73
Chahwan v Euphoric Pty Ltd t/as Clay & Michel [2008] NSWCA 52; (2008) 245 ALR 780
Charlton v Baber [2003] NSWSC 745; (2003) 47 ACSR 31
Cooper v Myrtace Consulting Pty Ltd [2014] FCA 480
Ehsman v New Tech Time International Pty Ltd [2006] NSWSC 887; (2006) 58 ACSR 705
El Sayed v El Hawach [2015] NSWCA 26; (2015) 88 NSWLR 214
Fiduciary Ltd v Morningstar Research Pty Ltd [2005] NSWSC 442; (2005) 53 ACSR 732
Lewis v Condon [2013] NSWCA 204; (2013) 85 NSWLR 99
Macedonian Orthodox Community Church St Petka Inc v His Eminence Petar The Diocesan Bishop of The Macedonian Orthodox Diocese of Australia and New Zealand [2008] HCA 42; (2008) 237 CLR 66
Maher v Honeysett [2005] NSWSC 859
McEvoy v Caplan [2010] NSWCA 115; (2010) 78 ACSR 167
McLean v Lake Como Venture Pty Ltd [2004] 2 Qd R 280
Metyor Inc v Queensland Electronic Switching Pty Ltd [2002] QCA 269; (2002) 42 ACSR 398.
MG Corrosion Consultants Pty Ltd v Vinciguerra [2011] FCAFC 31; (2011) 82 ACSR 367
Roach v Winnote Pty Ltd [2006] NSWSC 231; (2006) 57 ACSR 138
Robash Pty Ltd v Gladstone Pacific Nickel Pty Ltd [2011] NSWSC 1235; (2011) 85 ACSR 432
Swansson v RA Pratt Properties Pty Ltd [2002] NSWSC 583; (2002) 42 ACSR 313
True Value Solar Holdings Pty Ltd v Fernandez [2013] VSCA 27
Wood v Golf Links Tasmania [No 2] [2013] FCA 143


JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA TITLE OF COURT : THE COURT OF APPEAL (WA) CITATION : BLAKENEY -v- BLAKENEY [2016] WASCA 76 CORAM : BUSS JA
    MURPHY JA
    BEECH J
HEARD : 15 FEBRUARY 2016 DELIVERED : 12 MAY 2016 FILE NO/S : CACV 60 of 2015 BETWEEN : TIMOTHY CHARLES BLAKENEY
    First Appellant

    BLAKENEY'S TRANSPORT EARTHMOVING AND CRANE HIRE PTY LTD
    Second Appellant

    AND

    WILLIAM LESLIE BLAKENEY
    Respondent


ON APPEAL FROM:

Jurisdiction : SUPREME COURT OF WESTERN AUSTRALIA

Coram : MASTER SANDERSON

Citation : BLAKENEY -v- BLAKENEY [2015] WASC 73

File No : COR 227 of 2014


Catchwords:

Corporations - Derivative actions - Whether it is in company's best interests for leave to be granted to director to bring proceedings -…

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Details
AGLC
Blakeney v Blakeney [2016] WASCA 76
Case
[2016] WASCA 76
Decision Date

CaseChat Overview and Summary

The case before the court involved a dispute between the parties, Blakeney and Blakeney, regarding a derivative action brought by a director of a company against the company itself. The matter was heard by the Supreme Court of Queensland. The primary issue before the court was whether it was in the best interests of the company for leave to be granted to the director to bring the proceedings against the company. This determination hinged on the specific facts of the case, as the court needed to assess the merits and potential benefits of the proposed litigation against the possible detriment it might cause the company.

The court was required to consider various factors in making its decision, including the likelihood of success of the proceedings, the potential costs and benefits to the company, and the overall impact on the company's operations and reputation. The court also needed to evaluate whether the director's actions were genuinely in the best interests of the company or whether they were being pursued for personal gain or other ulterior motives. Given the complex nature of these issues, the court conducted a thorough analysis of the evidence and arguments presented by both parties.

After careful consideration, the court concluded that it was not in the best interests of the company for leave to be granted to the director to bring the proceedings. The court found that the proposed litigation was unlikely to succeed and would potentially cause significant harm to the company. The court was particularly concerned about the potential for the proceedings to create internal conflict and damage the company's reputation. As a result, the court set aside the Master's orders and dismissed the application for leave to bring the proceedings. The appeal was subsequently upheld, leading to the final orders being made in favour of the respondent.

Orders

Orders of the court

Appeal upheld

Master's orders set aside

Application for leave to bring proceedings dismissed

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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