Lidden v Composite Buyers Ltd

Case [1996] FCA 728



CATCHWORDS

TRUSTS - Practice and Procedure - corporate trustee - receiver and manager appointed to corporate trustee - 1 class of beneficiaries comprised of directors of corporate trustee - directors sought to file application in name of corporate trustee - receiver and manager refused consent - corporate trustee named as respondent to application - whether competent for trust beneficiaries to commence application against 3rd parties on behalf of trust - whether equitable rule allowing beneficiaries to sue 3rd parties in exceptional circumstances confined to actions seeking equitable relief - post judicature procedure.

Hayim v Citibank NA [1987] 1 AC 730
Ramage v Waclaw (1988) 12 NSWLR 84
Vandepitte v Preferred Accident Insurance Corporation of New York [1933] AC 70

TRUSTS - Practice and Procedure - corporate trustee - whether competent for trust beneficiaries to commence application against 3rd parties on behalf of trust - exceptional circumstances required - actions by corporate trustee inter alia challenge debentures and appointment of receiver and manager.

Newhart Developments Ltd v Cooperative Commercial Bank Ltd [1978] 1 QB 814
Ramage v Waclaw (1988) 12 NSWLR 84

PRACTICE AND PROCEDURE - Parties - unwilling applicant named as respondent - subsequent consent of unwilling applicant - desirability of regulating conduct of proceedings - corporate trustee removed as respondent and named as 3rd applicant.

PRACTICE AND PROCEDURE - Abuse of Process - similar or same application lodged in same court 3 years after filing of first application - application involved same parties and same subject matter - whether abuse of process - power of court to stay similar proceedings where resolution of one will effectively dispose of the other.

Federal Court Rules O11 r16; O20 r2

PRACTICE AND PROCEDURE - Amendment to Pleadings - whether amendments introduce new causes of action which are statute barred - rule in Weldon v Neal - whether amendment 'just' - whether new cause of action arises out of 'same' or 'substantially similar facts'.

Federal Court Act 1976, s59(2B)
Federal Court Rules O13r2(2); O13r2(7)

Grundy v Lewis, Kiefel J, 24 November 1995, unreported
Harris v Western Australian Exim Corporation (1994) 129 ALR 387
Matthews v Ross Neilson Investments Pty Ltd, Kiefel J, 14 December 1995, unreported

PRACTICE AND PROCEDURE - Cause of Action - when cause of action accrues - whether fresh cause of action or instance of damage - whether fresh cause of action can be added to existing applications.

Federal Court Act 1976  s33K compared
Federal Court Rules, O11 r 7

Baldry v Jackson [1976] 2 NSWLR 415
Karedis Enterprises Pty Ltd v Antoniou (1995) ATPR 41-427
King v Milpurrurru, Full Court Federal Court, 12 April 1996, unreported
Saunders v Glev Franchises Pty Ltd (1996) ATPR 41-450
Wardley Australia Ltd v Western Australia (1992) 175 CLR 514

JAMES LIDDEN AND MARGARET THERESE LIDDEN v COMPOSITE BUYERS LIMITED AND OTHERS
No ACT G19 of 1992

JAMES LIDDEN, MARGARET THERESE LIDDEN AND LIGON 105 PTY LIMITED v COMPOSITE BUYERS LIMITED AND OTHERS
No ACT G67 of 1995

FINN J

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Details
AGLC
Lidden v Composite Buyers Ltd [1996] FCA 728
Case
[1996] FCA 728
Decision Date

CaseChat Overview and Summary

The Federal Court was presented with two notices of motion arising from two separate proceedings between the same parties. James and Margaret Lidden, along with Ligon 105 Pty Ltd, sought relief against Composite Buyers Ltd and Payless Superbarn (NSW) Pty Ltd in both proceedings, which were based on similar facts. The court was required to decide whether the Liddens could institute proceedings on behalf of Ligon, whether it was just to allow an amendment to the pleadings in the 1992 proceedings to match the 1995 proceedings, and whether the 1995 proceedings were an abuse of process. The court held that the Liddens could institute proceedings on behalf of Ligon, as long as the circumstances were exceptional. The court also found it just to allow the amendment to the pleadings in the 1992 proceedings to match the 1995 proceedings, despite the introduction of new causes of action. Lastly, the court refused to strike out or dismiss the 1995 proceedings, as the applicants had a valid reason to institute them to guard against the contingency of a later arising cause of action.

The orders of the court were to grant leave to the applicants to join Ligon 105 Pty Ltd as an applicant in the 1992 proceedings, strike out Ligon 105 Pty Ltd as a respondent in the same proceedings, allow the amendment to the pleadings in the 1992 proceedings to match the 1995 proceedings, and order that both proceedings be tried at the same time with evidence shared between them. In the 1995 proceedings, the court dismissed the notice of motion and reserved costs.

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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