Lambourne v Baker

Case [2021] NSWCA 229


Court of Appeal


Supreme Court


New South Wales

  • Summary available
Medium Neutral Citation: Lambourne v Baker [2021] NSWCA 229
Hearing dates: 23, 24 June 2021
Date of orders: 24 September 2021
Decision date: 24 September 2021
Before: Basten and Gleeson JJA at [1];
Emmett AJA at [33]
Decision:

Order that:

1. Judgment be entered in favour of the Third Appellant against the First Respondent in the sum of $210,249.

2. The appeal be otherwise dismissed.

3. The appellants further amended notice of motion filed on 23 June 2021 be dismissed.

3. There be no order as to costs in respect of the appeal and the proceedings below.

4. The parties may seek to reopen Order 3 by a notice of motion filed within 14 days in the ordinary course.

5. The record be altered to show that the name of the Third Respondent has been changed to “Betmakers Technology Group Limited”.

Catchwords:

CIVIL PROCEDURE — pleadings — implied abandonment — certain pleadings not expressly raised during trial — supporting evidence admitted — forensic decision by respondent to leave evidence unopposed — pleading unaddressed by primary judge — self-represented litigant — whether pleadings abandoned or merely overlooked in course of proceedings — remedy sought on appeal

EQUITY — equitable remedies — equitable compensation — availability — misappropriation of company funds by director — moneys applied for personal uses — recovery of moneys by company

EQUITY — fiduciary duties — breach — rule in Barnes v Addy — whether evidence of breach by primary wrongdoer established

Legislation Cited:

Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law, ss 18, 236

Corporations Act 2001 (Cth), ss 79, 180, 181, 182, 183, 1317H

Cases Cited:

Atkins v National Australia Bank (1994) 34 NSWLR 155

Barnes v Addy (1874) LR 9 Ch App 244

Brunninghausen v Glavanics (1999) 46 NSWLR 538; [1999] NSWCA 199

Texts Cited:

Nil

Category:Principal judgment
Parties: Marc Alan Lambourne (First Appellant)
Glenn Craig Pollett (Second Appellant)
The Punters Show Pty Limited ACN 147 950 016 (Third Appellant)
Dallas Matthew Baker (First Respondent)
Todd Cameron Buckingham (Second Respondent)
Betmakers Technology Group Limited ACN 164 521 395 (formerly TopBetta Holdings Limited) (Third Respondent)
12Follow Pty Limited ACN 136 345 536 (Fourth Respondent)
Operis Momentus Pty Limited ACN 153 419 115 (Fifth Respondent)
Representation:

Counsel:
First Appellant (self-represented and with leave of the Court, on behalf of the Second and Third Appellants)
P Silver (Respondents)

Solicitors:
Cockburn & Co (Respondents)
File Number(s): 2019/407870
Publication restriction: Nil
 Decision under appeal 
Court or tribunal:
Supreme Court of New South Wales
Jurisdiction:
Equity
Citation:

[2019] NSWSC 1777

Date of Decision:
13 December 2019
Before:
Rees J
File Number(s):
2016/344608

Judgment

  1. BASTEN and GLEESON JJA: The appellants challenge orders made by Rees J in the Equity Division (Corporations List) dismissing proceedings brought by them against the respondents.1 The first two appellants, Marc Lambourne and Glenn Pollett, established an on-line business giving tips on horse-racing called the Punters Show. With the first respondent,…

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AGLC
Lambourne v Baker [2021] NSWCA 229
Case
[2021] NSWCA 229
Decision Date

CaseChat Overview and Summary

In the matter of *Lambourne v Baker*, the appeal concerned a dispute arising from the alleged misappropriation of company funds by a director. The appeal was heard by Basten and Gleeson JJA, and Emmett AJA.

The central legal issues before the court were whether certain pleadings had been impliedly abandoned by the respondent, despite supporting evidence being admitted and not being opposed during the trial, and whether equitable compensation was available for the misappropriation of company funds by a director for personal use. The court also considered whether the evidence established a breach of fiduciary duties by the primary wrongdoer, in accordance with the rule in *Barnes v Addy*.

The court reasoned that the failure to expressly raise certain pleadings during the trial, particularly by a self-represented litigant, did not necessarily equate to an abandonment of those pleadings. Instead, it could reflect an oversight in the course of proceedings. The court found that equitable compensation was an available remedy for the misappropriation of company funds.

The court ordered that judgment be entered in favour of the Third Appellant against the First Respondent for the sum of $210,249. The appeal was otherwise dismissed, and the appellants' further amended notice of motion was also dismissed. There were no orders as to costs for the appeal or the proceedings below, with parties having a limited window to seek to reopen this cost order. The court also directed that the record be amended to reflect a change in the name of the Third Respondent.

Orders

Orders of the court

Order that:

1. Judgment be entered in favour of the Third Appellant against the First Respondent in the sum of $210,249.

2. The appeal be otherwise dismissed.

3. The appellants further amended notice of motion filed on 23 June 2021 be dismissed.

3. There be no order as to costs in respect of the appeal and the proceedings below.

4. The parties may seek to reopen Order 3 by a notice of motion filed within 14 days in the ordinary course.

5. The record be altered to show that the name of the Third Respondent has been changed to “Betmakers Technology Group Limited”.

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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