Gang v You (No 3)

Case [2021] ACTSC 318


SUPREME COURT OF THE AUSTRALIAN CAPITAL TERRITORY

Case Title:

Gang v You (No 3)

Citation:

[2021] ACTSC 318

Hearing Date(s):

18-22, 25-27 October 2021

Submissions Last Received:

19 November (Plaintiff), 3 December (First Defendant), 10 December (Plaintiff in Reply)

DecisionDate:

15 December 2021

Before:

Crowe AJ

Decision:

See [386]

Catchwords:

.

CIVIL LAW – CONTRACT – where the plaintiff claims there was an agreement to merge the plaintiff’s company with the first defendant’s company – breach of contract – where the plaintiff claims the first defendant breached the alleged merger agreement – sale of property – where the plaintiff sold his property to the first defendant – whether the proceeds of sale should have been paid to the plaintiff or the first defendant’s company

EQUITY – EQUITABLE AND FIDUCIARY DUTIES – where the plaintiff claims the second defendant acted as his solicitor in the sale of property – where the plaintiff claims the first and second defendants owed the plaintiff equitable and fiduciary duties – whether those equitable and fiduciary duties were breached  

SOLICITOR – CONFLICT OF DUTIES – where the plaintiff claims the second defendant failed to disclose its conflict of duties – whether the second defendant breached r 11 of the Legal Profession (Solicitors) Conduct Rules 2015 (ACT)

Legislation Cited:

Evidence Act 2011 (ACT) s 140

Legal Profession (Solicitors) Conduct Rules 2015 (ACT) r 11

Cases Cited:

Beach Petroleum NL v Kennedy [1999] NSWCA 408; 48 NSWLR 1

Briginshaw v Briginshaw (1938) 60 CLR 336
Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447
Craig v Silverbrook [2013] NSWSC 1687
Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd (1988) 14 NSWLR 523
Evans v Braddock [2015] NSWSC 249
Gang v You [2020] ACTSC 105
Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41
Pegrum v Fatharly (1996) 14 WAR 92
Ryan v Bunnings Group Limited [2020] ACTSC 353
Steele v Marshan [2012] NSWCA 141
Warner v Hung, in the matter of Bellpac Pty Limited (Receivers and Managers Appointed) (In Liquidation) (No 2) [2011] FCA 1123

Watson v Foxman (1995) 49 NSWLR 315

Parties:

Yeong Suk Gang ( Plaintiff)

Jin Ho You (First Defendant)

Colquhoun Murphy Pty Ltd Trading as Colquhoun Murphy Lawyers (Second Defendant)

Representation:

Counsel

Dr D Hassall ( Plaintiff)

B Buckland (First Defendant)

A Muller (Second Defendant)

Solicitors

Maxwell & Co ( Plaintiff)

Mills Oakley (First Defendant)

Moray & Agnew (Second Defendant)

File Number(s):

SC 430 of 2018

Crowe AJ

Introduction

  1. I provide the following summary of the central allegations made in this matter which underlie the specific claims explained in more detail in the account of the pleadings given below.

  1. The plaintiff was born in Korea. He is about 56 years of age. He completed primary schooling in Korea. He worked as a tiler in that country. He came to Australia about 20 years ago. He was able to demonstrate sufficient proficiency as a tiler to obtain a Certificate III in General Construction (Wall and Floor…

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AGLC
Gang v You (No 3) [2021] ACTSC 318
Case
[2021] ACTSC 318
Decision Date

CaseChat Overview and Summary

This case involved a dispute between Yeong Suk Gang and Jin Ho You over the alleged merger of their companies, CU Tiling Pty Ltd and JY Contractors Pty Ltd. Gang claimed that You had agreed to merge the two companies and pay off Gang's company debts, but had failed to do so. Gang also claimed that You had breached a contract for the sale of his property and that the solicitors who handled the sale, Colquhoun Murphy, had breached their fiduciary duties to him. You denied these claims and counterclaimed for unpaid occupation fees and legal costs. The court found that there was no agreement to merge the two companies, that You had not breached the contract for the sale of Gang's property, and that Colquhoun Murphy had not breached any fiduciary duties to Gang. The court also found in favour of You on his counterclaim for unpaid occupation fees and legal costs. The court dismissed Gang's claims and ordered him to pay the defendants' costs of the proceeding.

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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