Green v Wilden Pty Ltd

Case [2005] WASC 83


JURISDICTION     :   SUPREME COURT OF WESTERN AUSTRALIA

IN CIVIL

CITATION:   GREEN & ORS -v- WILDEN PTY LTD & ORS [2005] WASC 83

CORAM:   HASLUCK J

HEARD:   4-21 NOVEMBER 2003, 15-28 APRIL 2004, 5, 11, 12, 21, 26, 27, 31 MAY 2004, 1-4, 8-14, 21-30 JUNE 2004, 1 & 2 JULY 2004, 29 & 30 NOVEMBER 2004

DELIVERED          :   10 MAY 2005

FILE NO/S:   CIV 3049 of 1991

CIV 3050 of 1991
CIV 2965 of 1990
CIV 2966 of 1990
Consolidated by order dated 5 August 1998

BETWEEN:   GRAEME WILLIAM GREEN

First Plaintiff

W J GREEN & CO (1984) PTY LTD (ACN 008 851 867)
Second Plaintiff

SHARYN LEE GREEN
GRAEME WILLIAM GREEN
JULIE ANNE GREEN
WILLIAM JOSEPH GREEN
NORMA GLENYCE GREEN
Third Plaintiffs

AND

WILDEN PTY LTD (ACN 009 143 033)
First Defendant

MAGENTA NOMINEES PTY LTD (ACN 009 340 158)
Second Defendant

TACE PTY LTD (ACN 009 204 915)
Third Defendant

SYDNEY JAMES CHESSON
Fourth Defendant

BERT LEONARD DENBOER
Fifth Defendant

CALLAO PTY LTD (ACN 008 867 552)
Sixth Defendant

BENRONE PTY LTD (ACN 008 931 084)
Seventh Defendant

DELTABROOK PTY LTD (ACN 009 462 695)
Eighth Defendant

JOHN MARTIN KELLY
Ninth Defendant

(BY ORIGINAL ACTION)

WILDEN PTY LTD (ACN 009 143 033)
First Plaintiff by Counterclaim

MAGENTA NOMINEES PTY LTD (ACN 009 340 158)
Second Plaintiff by Counterclaim

AND

GRAEME WILLIAM GREEN
First Defendant by Counterclaim

W J GREEN & CO (1984) PTY LTD (ACN 008 851 867)
Second Defendant by Counterclaim

SHARYN LEE GREEN
GRAEME WILLIAM GREEN
JULIE ANNE GREEN
WILLIAM JOSEPH GREEN
NORMA GLENYCE GREEN
Third Defendants by Counterclaim

(BY COUNTERCLAIM)
 

Catchwords:

Trusts - Administration of three Trusts by trustee companies - Interpretation of subject Trust Deeds in standard form - Provisions concerning trustees' powers and duties - Provisions concerning repurchase procedure as to units in each Trust - Provisions excluding trustees' liability save for fraud - Resolution of various issues concerning compliance with repurchase procedure - Valuations relied on by trustee companies found to be ineffective - Resolution of various related issues concerning breach of fiduciary duties by the subject trustee companies and their directors - Finding of fraud in equity in respect of units and options allotted to certain directors - Protective provisions of subject Trust Deed held not to exclude liability - Plaintiffs entitled to equitable relief in respect of certain claims subject to intervening circumstances and other relevant matters - Exact form of equitable relief to be determined

Legislation:

Companies (Western Australia) Code, s 229(2)

Companies Act 1961 (WA), s 124(1)
Corporations Act 1989 (Cth) (Corporations Law), s 232, s 1318(1)
Corporations Act 2001 (Cth), s 181, s 182
Trade Practices Act 1974 (Cth), s 52, s 75B

Trustees Act 1962 (WA), s 75

Result:

Plaintiffs' claim allowed in part
Defendants' counterclaim allowed in part
Final orders to be determined

Category:    B

Representation:

Original Action

Counsel:

First Plaintiff               :        Mr D Grace QC & Mr M L Bennett

Second Plaintiff               :        Mr D Grace QC & Mr M L Bennett

Third…

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Green v Wilden Pty Ltd [2005] WASC 83
Case
[2005] WASC 83
Decision Date

CaseChat Overview and Summary

In the case of Green v Wilden Pty Ltd, the plaintiffs, who were unit holders in three trusts, brought an action against the defendants, who were the trustee companies responsible for the administration of the trusts. The dispute centred around the interpretation of the trust deeds, specifically the provisions concerning the trustees' powers and duties, and the repurchase procedure for units in each trust. The plaintiffs alleged that the trustee companies had breached their fiduciary duties and engaged in fraudulent conduct.

The court was required to determine whether the trustee companies had properly complied with the repurchase procedure outlined in the trust deeds. Additionally, the court needed to assess whether the valuations relied upon by the trustee companies were effective and whether the protective provisions in the trust deeds excluded the trustee companies' liability for their actions. The court also had to consider whether the trustee companies had breached their fiduciary duties by allotting units and options to certain directors, and if there was any fraud in equity concerning these allotments.

The court found that the valuations relied upon by the trustee companies were ineffective, and that the trustee companies had breached their fiduciary duties by allotting units and options to certain directors. The court held that the protective provisions in the trust deeds did not exclude the trustee companies' liability for their actions. The court found that there was fraud in equity in respect of the units and options allotted to certain directors. The plaintiffs were entitled to equitable relief in respect of certain claims, subject to intervening circumstances and other relevant matters. The exact form of the equitable relief would be determined at a later stage.

The court ordered that the trustee companies and their directors were liable for the breach of fiduciary duties and fraud in equity. The court further ordered that the plaintiffs were entitled to equitable relief in respect of certain claims, subject to the aforementioned intervening circumstances and other relevant matters. The court directed that the form of equitable relief would be determined at a later stage.

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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