LCM Litigation Fund Pty Ltd v Coope

Court of Appeal

Supreme Court

New South Wales

• Summary available

Medium Neutral Citation:	LCM Litigation Fund Pty Ltd v Coope [2017] NSWCA 200
Hearing dates:	21 March 2017
Decision date:	11 August 2017
Before:	Macfarlan JA at [1]; Simpson JA at [2]; Emmett AJA at [68]
Decision:	(1)  Appeal dismissed;  (2)  Appellant to pay the respondent’s costs.
Catchwords:	CONTEMPT – breach of undertaking to court – construction of undertaking – meaning of “direct dealing”
Legislation Cited:	Corporations Act 2001 (Cth)
Cases Cited:	Advan Investments Pty Ltd v Dean Gleeson Motor Sales Pty Ltd [2003] VSC 201 Coope v LCM Litigation Fund Pty Ltd [2016] NSWCA 37 Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd (2016) 333 ALR 384; [2016] HCA 26 LCM Litigation Fund Pty Ltd v Coope [2016] NSWSC 1221 LCM Litigation Fund Pty Ltd v Coope; Coope v LCM Litigation Fund Pty Ltd (No 2) [2015] NSWSC 992 Lee v New South Wales Crime Commission (2012) 224 A Crim R 94; [2012] NSWCA 262 National Australia Bank Ltd v Juric [2001] VSC 375 Wyszenko v Wyszenko [2012] NSWSC 732
Category:	Principal judgment
Parties:	LCM Litigation Fund Pty Ltd (Appellant) Patrick Mark Coope (Respondent)
Representation:	Counsel: A J Sullivan QC/T E O’Brien (Appellant) A J L Bannon SC/Y Shariff (Respondent)   Solicitors: Piper Alderman (Appellant) Esplins (Respondent)
File Number(s):	2016/271596
Decision under appeal	Court or tribunal: Supreme Court Jurisdiction: Equity Citation: LCM Litigation Fund Pty Ltd v Coope [2016] NSWSC 1221 Date of Decision: 1 September 2016 Before: Robb J File Number(s): 2015/359582

HEADNOTE

[This headnote is not to be read as part of the judgment]

The appellant (“LCM”) is a litigation funding company. From 1997 until 31 March 2015, the respondent was involved with the company, and was engaged as one of two joint managing directors. The respondent’s employment was terminated on 31 March 2015, and proceedings were commenced seeking orders restraining the respondent for 12 months from soliciting, canvassing, approaching or accepting any approach from or performing any work for (or attempting to do any of the foregoing) any client (of LCM) with whom he had had direct dealings, or for whom he had performed work, within the two years prior to the date of termination of his employment. Interlocutory orders to this effect were made in the course of those proceedings.

The respondent was also a director of a company called Small Claims Funding Pty Ltd (“SCF”) which was the trustee of an entity called the Small Claims Fund, owned by entities associated with the respondent or by another individual involved with LCM. SCF was also a litigation funding company, funding smaller claims. The respondent held email addresses both with LCM and SCF.

In late 2013 Mr Rosenblatt, a solicitor acting for Mr Farnsworth, the liquidator of Moore Australasia Pty Ltd (in liquidation), contacted the respondent at his SCF email address and provided details of proposed litigation. The email asked whether SCF would be interested in funding the litigation. Over a period of weeks Mr…