O'Brien v Supercheap Security Pty Ltd [2024] NSWSC 1117

O'Brien v Supercheap Security Pty Ltd [2024] NSWSC 1117

Mr Mehdi is liable to the plaintiffs under the second limb of Barnes v Addy as an accessory to breach of trust. By setting up and handing over the Supercheap Account to Mr Waheed, in circumstances where Mehdi had wilfully and recklessly failed to enquire as an honest person would and possessed knowledge of circumstances indicating dishonest purpose, Mehdi knowingly assisted Supercheap Security in breaching its duties as trustee. Plaintiffs are entitled to equitable compensation, interest, and costs.

Parties
First Plaintiff: Joanne Marjorie O'Brien; Second Plaintiff: Kerrin Uytendaal; Third Plaintiff: Mark Uytendaal; Fourth Plaintiff: Judy Jeanette Fleiter; First Defendant: Supercheap Security Pty Ltd; Second Defendant: Hassan Mehdi; Third Defendant: National Australia Bank Limited
Jurisdiction
Australia
Judgment Date
04 September 2024
Procedural Posture
Equity Corporations List / Principal Judgment
Outcome
Judgment for the Plaintiffs against Second Defendant; final orders pending receipt of proposed minutes and resolution of interest/costs calculation.
Legal Topics
Accessorial Liability, Knowing Assistance, Breach of Trust, Fraud, Constructive Trusts
Equity Corporations Accessorial Liability Knowing Assistance Breach of Trust Fraud Constructive Trusts

Case Brief

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Parties

Joanne Marjorie O'Brien

First Plaintiff

Kerrin Uytendaal

Second Plaintiff

Mark Uytendaal

Third Plaintiff

Judy Jeanette Fleiter

Fourth Plaintiff

Supercheap Security Pty Ltd

First Defendant

Hassan Mehdi

Second Defendant

National Australia Bank Limited

Third Defendant

Procedural Posture

Equity Corporations List / Principal Judgment

Legal Issues

  1. 1 Whether Second Defendant knowingly assisted in breach of trust
  2. 2 Whether Second Defendant handed over control of First Defendant and its bank account to a third party prior to the relevant transactions

Ratio Decidendi

Mr Mehdi is liable to the plaintiffs under the second limb of Barnes v Addy as an accessory to breach of trust. By setting up and handing over the Supercheap Account to Mr Waheed, in circumstances where Mehdi had wilfully and recklessly failed to enquire as an honest person would and possessed knowledge of circumstances indicating dishonest purpose, Mehdi knowingly assisted Supercheap Security in breaching its duties as trustee. Plaintiffs are entitled to equitable compensation, interest, and costs.

Court Disposition

Judgment for the Plaintiffs against Second Defendant; final orders pending receipt of proposed minutes and resolution of interest/costs calculation.

Orders

  • Plaintiffs to provide Second Defendant and Associate to Nixon J by 5pm 11 September 2024 proposed short minutes of order including orders dealing with interest and costs.
  • Second Defendant to notify by 5pm 18 September 2024 whether he agrees with orders, including calculation of interest and costs.