Commonwealth of Australia v South Pacific Cruise Lines Ltd

[1998] FCA 721

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NG 741 of 1997

BETWEEN:

COMMONWEALTH OF AUSTRALIA
APPLICANT

AND:

SOUTH PACIFIC CRUISE LINES LTD (ACN 076 749 794)
FIRST RESPONDENT

GREGORY STEPHEN ADAMS
SECOND RESPONDENT

CGI FINANCIAL SERVICES PTY LTD (ACN 072 940 437)
THIRD RESPONDENT

JUDGE:

FOSTER J

DATE OF ORDER:

27 MAY 1998

WHERE MADE:

SYDNEY

THE COURT DECLARES THAT:

1. The first respondent received the sum of $2,235,838.50 as trustee for the applicant on 10 June 1997.

1. The balance of the said sum in an amount of $3,3053.83 has continued to be held on trust by the first respondent since 15 September 1997.

THE COURT ORDERS THAT:

1. The first respondent repay the balance of the said trust monies in the amount of $3,053.83 to the applicant.

1. The first respondent pay damages in the amount of $730,843.17 by way of equitable compensation.

1. The third respondent pay damages in the amount of $733,897.00 by way of equitable compensation.

1. The first and third respondents pay interest on the sum of $733,897.00 in an amount of $41,129.00.

1. The first and third respondents pay the applicant’s costs of these proceedings as against the first and third respondents.

1. The exhibits tendered in the proceedings on 17 October 1997, 22 April 1998 and 27 May 1998 be retained in Court for a period of three months from today.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NG 741 of 1997

BETWEEN:

COMMONWEALTH OF AUSTRALIA
APPLICANT

AND:

SOUTH PACIFIC CRUISE LINES LTD (ACN 076 749 794)
FIRST RESPONDENT

GREGORY STEPHEN ADAMS
SECOND RESPONDENT

CGI FINANCIAL SERVICES PTY LTD (ACN 072 940 437)
THIRD RESPONDENT

JUDGE:	FOSTER J
DATE:	27 MAY 1998
PLACE:	SYDNEY

REASONS FOR JUDGMENT
(Extempore)

In this matter there is no appearance on behalf of the first and third respondents.  The evidence which has been tendered in these proceedings was the subject of consideration by myself in proceedings brought for summary judgment against the second respondent on 22 April 1998 and the reasons that I gave on that occasion are sufficient to supply the reasons for the orders which are, in fact, sought on this occasion.  I am satisfied that the evidence establishes the right to the relief sought by the applicant.   That relief is set out in the short minutes of order which have been handed to me this morning.

I therefore make the following declarations that:-

1. The first respondent received the sum of $2,235,838.50 as trustee for the applicant on 10 June 1997.

2. The balance of the said sum in an amount of $3,3053.83 has continued to be held on trust by the first respondent since 15 September 1997.

I therefore make the following orders that:-

1. The first respondent repay the balance of the said trust monies in the amount of $3,053.83 to the applicant.

2. The first respondent pay damages in the amount of $730,843.17 by way of equitable compensation.

3. The third respondent pay damages in the amount of $733,897.00 by way of equitable compensation.

4. The first and third respondents pay interest on the sum of $733,897.00 in an amount of $41,129.00.

5. The first and third respondents pay the applicant’s costs of these proceedings as against the first and third respondents.

6. The exhibits tendered in the proceedings on 17 October 1997, 22 April 1998 and 27 May 1998 be retained in Court for a period of three months from today.

I certify that this and the preceding one (1) page are a true copy of the Reasons for Judgment herein of the Honourable Justice Foster.

Associate:

Dated:            27 May 1998

Counsel for the Applicant:	Mr R. Webb
Solicitor for the Applicant:	Australian Government Solicitor
No Appearance for the First and Third Respondents
Date of Hearing:	27 May 1998
Date of Judgment:	27 May 1998