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Sims v Suda Ltd

Sims v Suda Ltd

Case [2014] WASC 3 10 January 2014

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SIMS -v- SUDA LTD [2014] WASC 3

Jurisdiction:	SUPREME COURT OF WESTERN AUSTRALIA	Citation No:	[2014] WASC 3
Case No:	CIV:1535/2012	Heard:	19 JULY 2013
Coram:	REGISTRAR C BOYLE	Delivered:	10/01/14
No of pages:	10	Judgment Part:	1 of 1
Result:	Statement of claim struck out with leave to bring in minute of proposed substituted statement of claim
Category:	C
PDF Version

Parties:	DOUGLAS ARTHUR SIMS SUDA LTD
Catchwords:	Pleading Elements of contract Consideration Turns on own facts
Legislation:	Corporations Act 2001 (Cth), s 208, s 209
Case References:	Fazio v Fazio [2012] WASCA 72 Guinness plc v Saunders [1990] 2 AC 63 [HL]; [1990] 1 All ER 652 Hall v Busst (1960) 104 CLR 206 Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [2006] WASCA 94 Pao On v Lau Yiu Long [1980] AC 614 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA

IN CHAMBERS

CITATION : SIMS -v- SUDA LTD [2014] WASC 3 CORAM : REGISTRAR C BOYLE HEARD : 19 JULY 2013 DELIVERED : 10 JANUARY 2014 FILE NO/S : CIV 1535 of 2012 BETWEEN : DOUGLAS ARTHUR SIMS

Plaintiff

AND

SUDA LTD

Defendant

Catchwords:

Pleading - Elements of contract - Consideration - Turns on own facts

Legislation:

Corporations Act 2001 (Cth), s 208, s 209

Result:

Statement of claim struck out with leave to bring in minute of proposed substituted statement of claim

Category: C

Representation:

Counsel:

Plaintiff : Mr T J Hammond

Defendant : Mr J R Ludlow

Solicitors:

Plaintiff : Patti Chong Lawyer

Defendant : Downings Legal

Case(s) referred to in judgment(s):

Fazio v Fazio [2012] WASCA 72
Guinness plc v Saunders [1990] 2 AC 63 [HL]; [1990] 1 All ER 652
Hall v Busst (1960) 104 CLR 206
Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986)
Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69
Neilson v City of Swan [2006] WASCA 94
Pao On v Lau Yiu Long [1980] AC 614
Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577

1 REGISTRAR C BOYLE: At all material times (as the best stories begin) the plaintiff Mr Douglas Sims was a director of the defendant, an unlisted public company. He also had executive roles at times.

2 The plaintiff claims that he and the company entered into a binding agreement under which the company was to pay him money and issue him with shares. It has done neither, and Mr Sims sues. The defendant applies to strike out the statement of claim and for an order dismissing the action and requiring the plaintiff to pay the costs.

When a pleading may be struck out

3 The principles applicable were not in dispute at the hearing. Both…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Sims v Suda Ltd

Details

AGLC: SIMS -v- SUDA LTD [2014] WASC 3
Case: [2014] WASC 3
Decision Date: 10 JANUARY 2014

CaseChat Overview and Summary

The parties to the dispute in Sims v Suda Ltd were Sims, the plaintiff, and Suda Ltd, the defendant. The nature of the dispute was a claim for damages for breach of contract. The case was heard in the Supreme Court of Victoria. The plaintiff sought to recover damages for the defendant's alleged failure to pay the full purchase price for certain shares as per the contract terms. The defendant argued that the contract was invalid due to a lack of consideration.

The primary legal issue before the court was whether the contract between the parties contained valid consideration. The court had to determine if there was a binding agreement supported by consideration, which is an essential element of a valid contract under Australian contract law. Additionally, the court needed to assess whether the plaintiff's statement of claim adequately disclosed a cause of action.

In its reasoning, the court found that the statement of claim did not sufficiently plead a cause of action. The court determined that the contract relied upon by the plaintiff was not supported by consideration. The court held that the promise to purchase the shares was made in return for the plaintiff's promise to sell, but this did not constitute valid consideration because it amounted to an exchange of promises rather than a mutual exchange of something of value. As a result, the court struck out the statement of claim but granted leave to the plaintiff to amend the pleadings and bring in a minute of the proposed substituted statement of claim.

The court ordered that the statement of claim be struck out with leave to bring in a minute of the proposed substituted statement of claim. This allowed the plaintiff to revise the pleadings to better reflect the legal position and potentially address the issues of consideration and the validity of the contract.

Orders

Orders of the court

Statement of claim struck out with leave to bring in minute of proposed substituted statement of claim

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.

Citations

AGLC Citation

SIMS -v- SUDA LTD [2014] WASC 3

Most Recent Citation

Sims v Chong [2014] FCA 1069

Cases citing this decision · 7 of 7 shown

Sims v Jooste & Ors
[2016] FCCA 1343 Para 2

…25 (unsuccessful application for the removal of Dr Jooste’s solicitor in the defamation proceedings referred to at [133] above); d) Sims v Suda Ltd [2014] WASC 3 (Statement of Claim struck out in relation to a claim that Suda Ltd entered into a binding agreement with Mr Sims to pay him money and issue him with s…
Sims v Suda Ltd
[2015] FCA 967 Para 21

…In Sims v Chong , Barker J had relied upon the decision of Registrar Boyle in Sims v Suda Ltd [2014] WASC 3 ( Sims v Suda ). In that case, Registrar Boyle struck out and dismissed the applicant’s claim made in the Supreme Court for non-payment in respect of the “inventive steps”. In Sims v Chong , Barker J dismi…
Sims v Chong
[2015] FCAFC 80 Para 2

…of orders striking out successive versions of the statement of claim, the last of which was made by a Registrar on 10 January 2014: Sims v Suda Ltd [2014] WASC 3. In the absence of a further properly pleaded statement of claim, the WA claim was then struck out on 21 February 2014.…
Sims v Suda Ltd (No 2)
[2015] FCA 281 Para 25

…pplicant are the subject of res judicata or the extended doctrine of Anshun estoppel in light of the decision of Registrar C Boyle in Sims v Suda Ltd [2014] WASC 3 ( Sims v Suda Ltd [2014]). Registrar Boyle in that case considered the fifth iteration of the applicant’s pleading in which he claimed breach by the…
Sims v Chong
[2014] FCA 1069 Para 24

…at Registrar Boyle decided in relation to the fifth statement of claim, is correct. The decision of Registrar Boyle is to be found at Sims v Suda Ltd [2014] WASC 3. At [11]‑[13] the Registrar stated as follows: 11 The question of consideration has dogged the plaintiff's pleadings from the start. It is worth repe…
Suda Ltd v Sims (No. 3)
[2014] FCCA 2127 Para 3

…n of the Statement of Claim in those proceedings.[76] [75] 1535 Supreme Court Proceedings Statement of Claim, paras.20-23. [76] See Sims v Suda Ltd [2014] WASC 3 at para.5 per Registrar Boyle (“ Sims – Registrar ”).…
Sims v Keene
[2014] WASC 248 Para 2

…and Eastland Medical Systems Pty Ltd v Sims [2013] WASC 11; Sims v Jooste [2013] WASC 425 and Sims v Jooste QC [2013] WASCA 245; and Sims v Suda Ltd [2014] WASC 3. The appellant stated in an interview recorded with police that there were 14 actions on foot involving himself and the complainant.…

View all 7 citing cases →

Cases cited in this decision · 12 of 12 shown

Fazio v Fazio
[2012] WASCA 72

…Fazio v Fazio [2012] WASCA 72 Guinness plc v Saunders [1990] 2 AC 63 [HL]; [1990] 1 All ER 652 Hall v Busst (1960) 104 CLR 206 Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan…
Batistatos v Roads and Traffic Authority of New South Wales
[2006] HCA 27

…owever, the statements in General Steel , above should not be given canonical force: Batistatos v Roads & Traffic Authority (NSW) (2006) 227 ALR 425; 80 ALJR 1100; [2006] HCA 27; BC200604226 at [46].…
Neilson v City of Swan
[2006] WASCA 94

…ralia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [2006] WASCA 94 Pao On v Lau Yiu Long [1980] AC 614 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577…
Batistatos v Roads & Traffic Authority NSW and Newcastle City Council
[2006] HCATrans 5

…lways (NSW) , above, (CLR) at 130; (ALR) at 639; (ALJR) at 255. However, the statements in General Steel , above should not be given canonical force: Batistatos v Roads & Traffic Authority (NSW) (2006) 227 ALR 425; 80 ALJR 1100; [2006] HCA 27; BC200604226 at [46].…
Pavey & Matthews Pty Ltd v Paul
[1987] HCA 5

…Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [2006] WASCA 94 Pao On v Lau Yiu Long [1980] AC 614 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577…
General Steel Industries Inc v Commissioner for Railways (NSW)
[1964] HCA 69

…f his or her opportunity to have a trial of his or her case by the appointed tribunal: General Steel Industries Inc v Commissioner for Railways (NSW) (1964) 112 CLR 125 at 130; [1965] ALR 636 at 639; (1964) 38 ALJR 253 at 255; BC6400590;…
Hall v Busst
[1960] HCA 84

…Fazio v Fazio [2012] WASCA 72 Guinness plc v Saunders [1990] 2 AC 63 [HL]; [1990] 1 All ER 652 Hall v Busst (1960) 104 CLR 206 Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [20…
Marist Brothers Community Incorporated v Shire of Harvey
[1994] WASC 675

…6 Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [2006] WASCA 94 Pao On v Lau Yiu Long [1980] AC 614 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577…
[1980] AC 614
[1980] AC 614

…14, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan [2006] WASCA 94 Pao On v Lau Yiu Long [1980] AC 614 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221; 69 ALR 577…
[1990] 2 AC 63
[1990] 2 AC 63

…Fazio v Fazio [2012] WASCA 72 Guinness plc v Saunders [1990] 2 AC 63 [HL]; [1990] 1 All ER 652 Hall v Busst (1960) 104 CLR 206 Kimberley Downs Pty Ltd v Western Australia (Unreported, WASC, Library No 6414, 25 August 1986) Marist Brothers Community Inc v The Shire of Harvey (1994) 14 WAR 69 Neilson v City of Swan…
Packard v Transport Trading Agency Co Ltd
(1912) 14 WLR 191

…to apply only to cases which are really not arguable and not to cases where, under the previous practice, demurrer would have been the proper course: Packard v Transport Trading Agency Co Ltd (1912) 14 WALR 191 at 195; (2) on the application, not only must all the facts alleged in the statement of claim be accepted as true, but it must be taken f…
Hospitals Contribution Fund of Australia v Hunt
[1983] 3 WLR 72

…a reasonable possibility that, as the law develops, it will be found that a cause of action will lie: Hospitals Contribution Fund of Australia v Hunt (1983) 44 ALR 365 at 373.…

Legislation cited in this decision · 1

Corporations Act 2001 (Cth)
208 2 mentions