Milltec Australia Pty Ltd v Burnes

Case [2006] NSWCA 13


NEW SOUTH WALES COURT OF APPEAL

CITATION:      Milltec Australia Pty Ltd v Burnes & Anor [2006]  NSWCA 13

FILE NUMBER(S):
40637 of 2004; CA 40301 of 2005

HEARING DATE(S):            23 September 2005

DECISION DATE:     13/02/2006

PARTIES:
Milltec Australia Pty Ltd (Appellant/Claimant)
Wayne Burnes (First Respondent/First Opponent)
Milling Process Services Pty Ltd (Second Respondent/Second Opponent)

JUDGMENT OF:      Handley JA Hodgson JA Campbell AJA   

LOWER COURT JURISDICTION: Supreme Court - Equity Division

LOWER COURT FILE NUMBER(S):        SC 4309 of 2001

LOWER COURT JUDICIAL OFFICER:     Cripps AJ

COUNSEL:
N Cotman SC/K Odgers (Appellant/Claimant)
D Smallbone (Respondents/Opponents)

SOLICITORS:
McCabe Terrill (Appellant/Claimant)
Doherty Partners (Respondents/Opponents)

CATCHWORDS:
APPEAL – competency – amount involved – claim and value must be capable of reasonable support
CONVERSION – claim to bare declaration and inquiry without proof of cause of action misconceived
JUDGMENTS AND ORDERS – claim to declaration and inquiry as to damages – cause of action must be established at trial – inquiry consequential
D

LEGISLATION CITED:
Supreme Court Act 1970

DECISION:
(1) Appeal as of right dismissed as incompetent.
(2) Leave to appeal granted limited to grounds 6 and 7 of the notice of appeal of 2 November 2004.
(3) Summons for leave to appeal otherwise dismissed.
(4) Appeal allowed in part.
(5) Declare that the first respondent is accountable to the appellant for the profit of $21,500 made by him from the sale of a second hand Buhler separator and a second hand ribbon mixer to OBP Pty Ltd invoiced to that company on 25 May 2000.
(6) Order that the first respondent pay $21,500 to the appellant together with interest at Court rates from 1 June 2000.
(7) Appeal otherwise dismissed and orders 1-7 and 9-11 made by Cripps AJ on 6 July 2004 confirmed.
(8) The appellant is to pay one-half of the respondents’ costs of the appeal, the objection to competency and the summons for leave to appeal.

JUDGMENT:

IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL

CA 40637/04
CA 40301/05

HANDLEY JA
HODGSON JA
M W CAMPBELL AJA

13 FEBRUARY 2006

MILLTEC AUSTRALIA PTY LTD v WAYNE BURNES & ANOR

CATCHWORDS

APPEAL – competency – amount involved – claim and value must be capable of reasonable support

CONVERSION – claim to bare declaration and inquiry without proof of cause of action misconceived

JUDGMENTS AND ORDERS – claim to declaration and inquiry as to damages – cause of action must be established at trial – inquiry consequential

FACTS

The claimant, as defendant below, had cross-claimed against the plaintiff and a company through which he traded for equitable compensation, a declaration of conversion in respect of plant and equipment and an inquiry as to damages, and an account of profits.  The trial Judge dismissed the cross-claim.  The cross-claimant appealed as of right but the respondent objected to the competency of the appeal on the ground that it did not involve a claim to $100,000 or more (Supreme Court Act s 101(2)(r)).  The claimant applied for leave to appeal in the event…

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Details
AGLC
Milltec Australia Pty Ltd v Burnes [2006] NSWCA 13
Case
[2006] NSWCA 13
Decision Date

CaseChat Overview and Summary

Milltec Australia Pty Ltd (the appellant) appealed to the Full Court of the Supreme Court of Western Australia against orders made by Cripps AJ. The dispute concerned the appellant's claim against the first respondent, Mr Burnes, for an alleged wrongful sale of certain equipment.

The Full Court was required to determine whether the appeal was competent, particularly in light of the amount involved, and whether the appellant had established a cause of action entitling it to a declaration and inquiry as to damages. The court also considered whether to grant leave to appeal on specific grounds.

The court found that the appeal as of right was incompetent due to the amount involved not being capable of reasonable support. However, leave to appeal was granted on limited grounds. The court reasoned that a claim for a declaration and inquiry into damages is misconceived if the underlying cause of action has not been established at trial. Nevertheless, the court allowed the appeal in part, declaring that the first respondent was accountable to the appellant for a profit of $21,500 made from the sale of specific equipment.

Consequently, the court ordered the first respondent to pay $21,500 to the appellant, together with interest. The remaining aspects of the appeal were dismissed, with the orders of Cripps AJ confirmed. The appellant was ordered to pay one-half of the respondents’ costs of the appeal, the objection to competency, and the summons for leave to appeal.

Orders

Orders of the court

(1) Appeal as of right dismissed as incompetent.

(2) Leave to appeal granted limited to grounds 6 and 7 of the notice of appeal of 2 November 2004.

(3) Summons for leave to appeal otherwise dismissed.

(4) Appeal allowed in part.

(5) Declare that the first respondent is accountable to the appellant for the profit of $21,500 made by him from the sale of a second hand Buhler separator and a second hand ribbon mixer to OBP Pty Ltd invoiced to that company on 25 May 2000.

(6) Order that the first respondent pay $21,500 to the appellant together with interest at Court rates from 1 June 2000.

(7) Appeal otherwise dismissed and orders 1-7 and 9-11 made by Cripps AJ on 6 July 2004 confirmed.

(8) The appellant is to pay one-half of the respondents’ costs of the appeal, the objection to competency and the summons for leave to appeal.

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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