Kidd v Kwek (No 2)

The case of Kidd v Kwek (No 2) involved an application by the applicant, Kidd, for default judgment against the second, third, and fourth respondents for their non-compliance with court orders and failure to participate in proceedings. The case was heard in the Federal Court of Australia. The applicant's claims against the respondents included allegations of oppressive conduct under sections 232 and 233 of the Corporations Act 2001, breaches of fiduciary duties, and breaches of directors' duties under sections 180 to 183 of the Act. The respondents had failed to comply with discovery orders, file notices of address for service, and attend relevant hearings.

The court had to determine whether default judgment could be entered against the second, third, and fourth respondents for their persistent non-compliance with court orders and failure to engage in the proceedings. The applicant argued that the respondents' continued defaults caused unacceptable delay and expense, making it impossible to proceed in a just, orderly, and proper manner. The applicant also contended that on the face of the statement of claim, they were entitled to the relief claimed concerning the oppression claim and the derivative claims for breaches of fiduciary duties and sections 180 to 183 of the Act.

The court found that the second, third, and fourth respondents had indeed failed to comply with court orders, file notices of address for service, and attend hearings. Their conduct demonstrated a continued non-compliance with discovery orders and other court requirements. The court accepted the applicant's submissions that the respondents' defaults caused significant delays and expenses. The court concluded that it was appropriate to enter judgment in default against the second, third, and fourth respondents concerning the oppression claim and the derivative claims for breaches of fiduciary duties and sections 180 to 183 of the Act.

The court made several orders, including judgment in favour of the applicant for $100,000 against the second, third, and fourth respondents for oppressive conduct, with interest calculated at $16,510.14. Additionally, the court ordered that the fourth respondent pay damages or an account of profits to the second and third respondents for breaches of fiduciary duties and sections 180 to 183 of the Act, with the quantum to be assessed later. The applicant's costs of the proceeding up to the date of the orders were to be paid by the second and third respondents.