Yunghanns v Candoora No 19 Pty Ltd (No 3)

In this case, the plaintiff, Yunghanns, brought an action against Candoora No 19 Pty Ltd, a company under the guardianship of a litigation guardian due to the disability of its sole director. The plaintiff alleged that the company had engaged in various acts of mismanagement and breaches of fiduciary duty. Candoora No 19 Pty Ltd denied the allegations and raised a defence that the plaintiff had failed to properly identify the nature of the claims. The litigation guardian applied for an order to strike out the defence on the basis that it did not raise an arguable defence.

The court had to determine whether the defence plea raised an arguable defence and whether the litigation guardian was entitled to seek discovery of documents from a third party relating to an admitted allegation. Additionally, the court needed to consider whether the trustee of trust property should conduct litigation concerning the trust property and whether the receiver of the trustee should supervise the litigation.

The court found that the defence plea raised an arguable defence because it challenged the plaintiff's ability to properly identify the nature of the claims. The court also found that the litigation guardian was entitled to seek discovery of documents from a third party relating to an admitted allegation. The court held that the trustee of trust property could conduct litigation concerning the trust property, but the receiver should supervise the litigation to ensure that the trustee acted in the best interests of the beneficiaries. The court dismissed the application to strike out the defence but allowed the litigation guardian to seek discovery of relevant documents.

The court ordered that the litigation guardian could seek discovery of documents from a third party relating to an admitted allegation and that the receiver should supervise the litigation to ensure that the trustee acted in the best interests of the beneficiaries. The court also ordered that the defence plea could proceed to trial.