Hasler v Singtel Optus Pty Ltd

Case [2014] NSWCA 266


Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Hasler v Singtel Optus Pty Ltd; Curtis v Singtel Optus Pty Ltd; Singtel Optus Pty Ltd v Almad Pty Ltd [2014] NSWCA 266
Hearing dates:2-3 June 2014
Decision date: 15 August 2014
Before: Barrett JA at [1];
Gleeson JA at [6];
Leeming JA at [13]
Decision:

In 2013/333672: Appeal dismissed and cross-appeal dismissed.

In 2013/342608: Appeal dismissed and cross-appeal dismissed.

In 2013/343099: Appeal dismissed.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords:

APPEAL - challenge to findings of fact - deference to trial judge

EQUITY - fiduciary duty - employee in position of conflict - accessory liability for knowing assistance in dishonest and fraudulent design - meaning of "dishonest and fraudulent design" - whether necessary to show knowledge of absence of informed consent - measure of equitable compensation

FRAUD - pleadings and course of trial - whether finding of dishonesty available

PRECEDENTS - departure from decision of another intermediate appellate court - where not necessary to do so in order to resolve appeal - where issue was important, causing inconsistent formulations of principle - precedential status of a decision which did not itself develop the common law but merely explained decision of High Court - comity
Legislation Cited: Companies Act 1907 (UK), s 32
Companies Act 1936 (NSW), s 361
Companies Act 1961 (NSW), s 365
Companies (New South Wales) Code, ss 229(2), 535
Corporations Act 2001 (Cth), s 1318
Evidence Act 1995 (NSW), s 140
Judicial Trustees Act 1896 (UK), s 3
Judiciary Act 1903 (Cth), s 35A
Trade Practices Act 1974 (Cth), s 52
Trustee Act 1925 (NSW), s 85
Trustee Act Amendment Act 1902 (NSW), s 9
Trustees Act 1962 (WA), s 75
Cases Cited: Alexander v Burne [2013] NSWSC 1953
Alleyne v Darcy (1854) 4 Ir Ch Rep 199
Australian Securities and Investments Commission v Vines [2005] NSWSC 1349; 65 NSWLR 281
Australian Securities Commission v Marlborough Gold Mines Ltd (1993) 177 CLR 485
Barlow Clowes International Ltd (in liq) v Eurotrust International Ltd [2006] 1 All ER 333
Barnes v Addy (1874) LR 9 Ch App 244
Beck v Henley [2014] NSWCA 201
Belmont Finance Corporation Ltd v Williams Furniture Ltd [1979] Ch 250
BigTinCan Pty Ltd v Ramsay [2013] NSWSC 1248
Biogen Inc v Medeva plc [1996] UKHL 18; [1997] RPC 1
Bodenham v Hoskyns (1852) 21 LJ 864; 42 ER 1125
Briginshaw v Briginshaw (1938) 60 CLR 336
Bunnings Group Ltd v Borg [2014] NSWCA 240
CAL No 14 Pty Ltd v Motor Accidents Insurance Board [2009] HCA 47; 239 CLR 390
Commonwealth Financial Planning…

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AGLC
Hasler v Singtel Optus Pty Ltd [2014] NSWCA 266
Case
[2014] NSWCA 266
Decision Date

CaseChat Overview and Summary

The appeal and cross-appeals concerned a dispute between Mr. Hasler and Singtel Optus Pty Ltd. The proceedings involved allegations of breach of fiduciary duty and accessory liability for dishonest and fraudulent assistance. The matter was heard in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal included the nature and scope of an employee's fiduciary duty, particularly when acting in a position of conflict, and the requirements for establishing accessory liability for dishonest and fraudulent assistance. The court was also required to consider the meaning of "dishonest and fraudulent design" in this context, and whether it was necessary to demonstrate knowledge of the absence of informed consent. Furthermore, the court had to determine the appropriate measure of equitable compensation for breaches of fiduciary duty.

The Court of Appeal applied established principles of equity and fiduciary law. It considered the high degree of deference owed to a trial judge's findings of fact, particularly concerning issues of dishonesty. The court analysed the elements of accessory liability, emphasising the need for a dishonest and fraudulent design on the part of the principal and knowing assistance by the accessory. The court also addressed the precedential status of decisions from other intermediate appellate courts, noting that departure from such decisions is generally not necessary unless it is essential for the resolution of the appeal or to address inconsistent formulations of principle.

The outcome of the appeals was that the appeals and cross-appeals were dismissed.

Orders

Orders of the court

In 2013/333672: Appeal dismissed and cross-appeal dismissed.

In 2013/342608: Appeal dismissed and cross-appeal dismissed.

In 2013/343099: Appeal dismissed.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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