Trafalgar West Investments Pty Ltd v Superior Lawns Australia Pty Ltd

Case [2012] WASC 460 (S)


TRAFALGAR WEST INVESTMENTS PTY LTD -v- SUPERIOR LAWNS AUSTRALIA PTY LTD [2012] WASC 460 (S)



SUPREME COURT OF WESTERN AUSTRALIACitation No:[2012] WASC 460 (S)
Case No:COR:105/2012ON THE PAPERS
Coram:KENNETH MARTIN J1/02/13
4Judgment Part:1 of 1
Result: Order that the defendant registers two share transfers
No order as to costs
B
PDF Version
Parties:TRAFALGAR WEST INVESTMENTS PTY LTD as trustee for TRAFALGAR WEST INVESTMENTS TRUST
SUPERIOR LAWNS AUSTRALIA PTY LTD

Catchwords:

Dispositive orders
Costs
Turns on own facts

Legislation:

Corporations Act 2001 (Cth), s 1071F
Rules of the Supreme Court 1971 (WA), O 66 r 8A
Trustees Act 1962 (WA), s 78

Case References:

Nil

JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
    IN CHAMBERS
CITATION : TRAFALGAR WEST INVESTMENTS PTY LTD -v- SUPERIOR LAWNS AUSTRALIA PTY LTD [2012] WASC 460 (S) CORAM : KENNETH MARTIN J HEARD : ON THE PAPERS DELIVERED : 1 FEBRUARY 2013 FILE NO/S : COR 105 of 2012 BETWEEN : TRAFALGAR WEST INVESTMENTS PTY LTD as trustee for TRAFALGAR WEST INVESTMENTS TRUST
    Plaintiff

    AND

    SUPERIOR LAWNS AUSTRALIA PTY LTD
    Defendant

Catchwords:

Dispositive orders - Costs - Turns on own facts

Legislation:

Corporations Act 2001 (Cth), s 1071F


Rules of the Supreme Court 1971 (WA), O 66 r 8A
Trustees Act 1962 (WA), s 78

(Page 2)



Result:

Order that the defendant registers two share transfers


No order as to costs

Category: B


Representation:

Counsel:


    Plaintiff : No appearance
    Defendant : No appearance

Solicitors:

    Plaintiff : Karp Steedman Ross-Adjie
    Defendant : Bennett & Co



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

Nil

(Page 3)

1 KENNETH MARTIN J: In the aftermath of my reasons for decision in this action, delivered 30 November 2012, the parties have each filed written submissions concerning appropriate dispositive orders, including as to costs. Only the orders as to costs are contentious. The defendant's written submissions were received on 2 January 2013 and the plaintiff's, on 14 January 2013. The parties are amenable to these outstanding issues being determined on the papers.

2 As to substantive disposition, the parties' respective submissions accept that an order in the following terms is appropriate:


    'Pursuant to s 1071F of the Corporations Act 2001 (Cth), it is ordered that the defendant do register the two share transfers, copies of which are annexed to the affidavit of Patrick Gerard Gladwyn Jebb sworn 5 July 2012 (comprising part of annexure 'PGJ1' to that affidavit).'
    I agree and accordingly, an order in those terms shall be made.

3 As to costs, the plaintiff contends it was the successful party and as such, costs should follow the event. The defendant submits, however, there should be no order as to costs. That negative costs submission is advanced by reason of an analysis of the issues as canvassed on the substantive application, particularly the plaintiff's failure in its efforts to secure relief by the alternate route of s 78 of the Trustees Act 1962 (WA) and as well, because its s 1071F application succeeded only by reference to its reliance upon 'transfer' and not as to any 'transmission' of the shares at issue.

4 Further potential costs issues are raised by reference to the plaintiff's assistance at the hearing from pro bono counsel and an availability in that circumstance of O 66 r 8A of the Rules of the Supreme Court 1971 (WA) as regards a costs award in such circumstances. But in view of my conclusion as to costs it is unnecessary in the end to canvass this matter.

5 I am of the view that the defendant's submissions as to costs must be accepted. It must be accepted that the substantive component of the plaintiff's written submissions and its oral arguments at the application, concerned the Trustees Act and the subject of an argued transmission of shares by law. On this issue the plaintiff ultimately lost.

6 The basis upon which the plaintiff ultimately won was very much, on my assessment, of overall argument, time engaged and resources consumed, given minimal, if not fleeting attention. On that basis, this is


(Page 4)
    one of those exceptional cases where the eventual successful outcome should not dictate the costs outcome.

7 I point out that I did question, at an earlier directions hearing in this action (Mr Jebb attended as McKenzie friend for the plaintiff), why there is a need for any invocation of the Trustees Act, when the breadth of s 1071F seemed on the face of it to be of greater utility. I did not receive a satisfactory response. Nonetheless the eventual argument proceeded and chiefly, as I have mentioned, proceeded (unsuccessfully) by reference to the Trustees Act. In my assessment that exercise was wasteful, unnecessary and diverting of resources.

8 In these circumstances my assessment is that a just and the appropriate costs order, bearing in mind the end outcome in the exercise of discretion, is that there should be no order as to costs.

9 Those two orders as indicated, are now made.

Details
AGLC
Trafalgar West Investments Pty Ltd v Superior Lawns Australia Pty Ltd [2012] WASC 460 (S)
Case
[2012] WASC 460 (S)
Decision Date

CaseChat Overview and Summary

The case of Trafalgar West Investments Pty Ltd v Superior Lawns Australia Pty Ltd [2012] WASC 460 (S) involved a dispute between Trafalgar West Investments Pty Ltd, acting as trustee for Trafalgar West Investments Trust, and Superior Lawns Australia Pty Ltd. The plaintiff sought an order for the defendant to register two share transfers under section 1071F of the Corporations Act 2001 (Cth). The matter was heard on the papers before Kenneth Martin J in the Supreme Court of Western Australia. The primary legal issue was whether the defendant should be ordered to register the share transfers and, if so, whether any costs should be awarded to the plaintiff.

The court found that the defendant should indeed register the two share transfers as requested by the plaintiff. The court accepted the plaintiff's submissions that section 1071F of the Corporations Act 2001 (Cth) was the appropriate legal basis for the order. However, the court concluded that no order should be made as to costs. The court reasoned that the plaintiff's primary focus during the proceedings was on an argument based on the Trustees Act 1962 (WA), which ultimately did not succeed. The court found that the plaintiff's reliance on the Trustees Act was wasteful and unnecessary, diverting resources from the more straightforward statutory remedy available under section 1071F of the Corporations Act. As a result, the court determined that no costs should be awarded to the plaintiff.

In summary, the court granted the plaintiff's request for an order to register the share transfers but declined to make any order as to costs. The decision highlights the importance of choosing the most appropriate legal basis for a claim and the consequences of pursuing an unsuccessful or unnecessarily complex legal strategy.

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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