In the matter of Citigroup Global Markets Australia Pty Limited [2017] NSWSC 969

In the matter of Citigroup Global Markets Australia Pty Limited [2017] NSWSC 969

The NCMIOM warrants Mr Ong acquired did not and could not have had a 9 May 2014 reset date; the ASXOR 4040 contract was only for 100,000 NCMIOM warrants at 6.2 cents each and contained no term as to that reset date; and Mr Ong had no standing to sue on that contract. However, the proceeding was not summarily dismissed because it was not unarguable that Citigroup, through the online display, made a collateral promise or representation that the warrants had or would have a 9 May 2014 reset date, potentially founding a claim for breach of collateral contract or misrepresentation if properly pleaded.

Jurisdiction
Australia
Judgment Date
20 July 2017
Procedural Posture
Corporations List Proceeding Concerning ASX Traded Instalment Warrants / Defendant's Interlocutory Application for Summary Dismissal of the Proceedings, Alternatively to Have the Points of Claim Struck Out
Outcome
Application for summary dismissal dismissed. Proceedings to continue on pleadings. Plaintiff to pay defendant's costs of the interlocutory process.
Legal Topics
['asx Operating Rules' 'instalment Warrants' 'statutory Contract Under Corporations Act 2001 S 793 B' 'standing to Sue' 'summary Dismissal' 'collateral Contract' 'misrepresentation']
['corporations Law' 'financial Services and Markets' 'contract Law' 'civil Procedure'] ['asx Operating Rules' 'instalment Warrants' 'statutory Contract Under Corporations Act 2001 S 793 B' 'standing to Sue' 'summary Dismissal' 'collateral Contract' 'misrepresentation']

Case Brief

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Procedural Posture

Corporations List Proceeding Concerning ASX Traded Instalment Warrants / Defendant's Interlocutory Application for Summary Dismissal of the Proceedings, Alternatively to Have the Points of Claim Struck Out

Legal Issues

  1. 1 ['Whether it was arguable that Mr Ong acquired NCMIOM warrants with a 9 May 2014 reset date.' 'Whether it was arguable that Mr Ong contracted to acquire NCMIOM warrants with a 9 May 2014 reset date.' 'Whether a contract under Corporations Act 2001 s 793B and ASXOR 4040 could contain a term that the warrants had a 9 May 2014 reset date.' 'Whether Mr Ong had standing to sue on any ASXOR 4040 contract.' 'Whether the proceedings should be summarily dismissed despite a possible collateral contract or misrepresentation case not presently pleaded.']

Ratio Decidendi

The NCMIOM warrants Mr Ong acquired did not and could not have had a 9 May 2014 reset date; the ASXOR 4040 contract was only for 100,000 NCMIOM warrants at 6.2 cents each and contained no term as to that reset date; and Mr Ong had no standing to sue on that contract. However, the proceeding was not summarily dismissed because it was not unarguable that Citigroup, through the online display, made a collateral promise or representation that the warrants had or would have a 9 May 2014 reset date, potentially founding a claim for breach of collateral contract or misrepresentation if properly pleaded.

Court Disposition

Application for summary dismissal dismissed. Proceedings to continue on pleadings. Plaintiff to pay defendant's costs of the interlocutory process.

Orders

  • ['The proceedings continue on pleadings.' 'The plaintiff file and serve his statement of claim within 14 days and pleading thereafter continue in accordance with the rules.' 'The interlocutory process filed on 16 December 2016 be otherwise dismissed.' "The plaintiff pay the defendant's costs of the interlocutory...