Tse v Ngo

Case [2025] NSWSC 117


Supreme Court


New South Wales

Medium Neutral Citation: Tse v Ngo [2025] NSWSC 117
Hearing dates: 16 – 18 December 2024
Date of orders: 28 February 2025
Decision date: 28 February 2025
Jurisdiction:Equity - Expedition List
Before: Rees J
Decision:

Declarations as to existence and dissolution of partnership, partnership assets.

Catchwords:

PARTNERSHIPS AND JOINT VENTURES – business importing car accessories from China for sale in Australia by online e-commerce stores – multilingual “cooperation” contract – whether a partnership, joint venture or agency – characteristics at [146]-[152] – relevance of post contractual conduct at [5].

CONSTRUCTIVE TRUST – partnership leases warehouse – partner buys warehouse but fails to disclose his ownership to fellow partners – whether warehouse is partnership property – partner’s duties at [167]-[173] – whether partner entitled to recompense for contribution to acquisition of warehouse – principles at [177]-[178].

Legislation Cited:

Bankruptcy Act 1966 (Cth) s 58(3)(b)

Evidence Act 1995 (NSW), s 140(2)

Partnership Act 1892 (NSW) s 9, 10, 11, 12, 19, 20(1), 24(1)(1), 29

Cases Cited:

Aberdeen Railway Co v Blaikie Brothers (1854) 1 Macq 461

Ace Insurance Ltd v Moose Enterprise Pty Ltd [2009] NSWSC 724

Ambridge Investments Pty Limited (in liq) (receiver appointed) v Baker [2010] VSC 59

Ancient Order of Foresters in Victoria Friendly Society Limited v Lifeplan Australia Friendly Society Limited (2018) 265 CLR 1; [2018] HCA 43

Aucare Dairy (Aust) Pty Ltd v Huang (No 3) [2019] FCA 412; 135 ACSR 450

Bahr v Nicolay (No 2) (1988) 164 CLR 604

Bant v Bant [2003] WASC 137

Bassett v Cameron [2021] NSWSC 207

Birtchnell v Equity Trustees, Executors & Agency Co Ltd (1929) 42 CLR 384; [1929] HCA 24

Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61

Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; 2001 FCR 424

Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336

Chan v Zacharia (1984) 154 CLR 178

Deputy Commissioner of Taxation v O’Donoghue [2022] WASC 153

FAI General Insurance Co Ltd v Ocean Marine Mutual Protection & Indemnity Association Ltd (1997) 41 NSWLR 117

Fazio v Fazio [2012] WASCA 72

Fragar v Fragar [2024] NSWSC 193

Gerovich v Gerovich (as executor of the estate of Gerovich) [2018] WASC 153

Gibson Motorsport Merchandise Pty Limited v Forbes [2005] FCA 749

Harvey v Harvey (1970) 120 CLR 529; [1970] HCA 11

Huntington Copper Co v Henderson (1877) 4 R 294

JR Consulting & Drafting Pty Ltd v Cummings (2016) 239 ALR 625; [2016] FCAFC 20

Kelly v Kelly (1990) 92 ALR 74

Kriketos v Livschitz [2009] NSWCA 96

Lucas v Lucas [1962] Qd R 205

Mao v Bao (2023) 113 NSWLR 26; [2023] NSWCA 278

McKensey v Hewitt (Supreme Court of New South Wales, 15 October 1997, unrep)

Miles v Clarke [1953] 1 All ER 779

Neville v Lam (No 3) [2014] NSWSC 607

O’Brien v Komesaroff (1982) 150 CLR 310; (1980) 41…

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AGLC
Tse v Ngo [2025] NSWSC 117
Case
[2025] NSWSC 117
Decision Date

CaseChat Overview and Summary

In the case of Tse v Ngo, the matter involved the interpretation of a multilingual "cooperation" contract between the parties, Tse and Ngo, who were involved in a business importing car accessories from China for sale in Australia via online e-commerce stores. The primary dispute was whether their relationship constituted a partnership, joint venture, or agency. The Federal Circuit and Family Court of Australia was tasked with resolving these intricate issues.

The court was required to determine the nature of the relationship between Tse and Ngo based on the terms of their contract and their subsequent conduct. Key legal questions included whether the characteristics of their business operations, as outlined in the contract and demonstrated through their actions, aligned more closely with a partnership, joint venture, or agency arrangement. Additionally, the court needed to assess the implications of Ngo's acquisition of a warehouse used by the business, particularly in light of his failure to disclose his ownership to Tse.

The court examined the contract and the parties' conduct, focusing on whether the shared control and mutual rights and obligations indicated a partnership. The court considered the nature of the business operations, the degree of control and decision-making power, and the sharing of profits and losses. The court also evaluated the relevance of post-contractual conduct, including the division of tasks, the pooling of resources, and the mutual intent to create a joint enterprise. The court found that the characteristics of the business and the parties' conduct were more consistent with a partnership than a joint venture or agency. Additionally, the court addressed the issue of the warehouse, determining that despite Ngo's acquisition, the warehouse remained partnership property due to his failure to disclose his ownership. The court ruled that Ngo was not entitled to recompense for his contribution to the acquisition of the warehouse, as his actions breached his fiduciary duties to Tse.

The court ordered that the warehouse be treated as partnership property and that Ngo account for his profits derived from the warehouse. The decision underscored the importance of clear communication and adherence to fiduciary duties within business partnerships.

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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