In the matter of Reserve Hotels Pty Limited [2021] NSWSC 487

In the matter of Reserve Hotels Pty Limited [2021] NSWSC 487

The Deed of Assignment was set aside under s 7(1) of the Contracts Review Act 1980 (NSW) due to unconscionability and undue influence; RHPL entitled to monetary judgment against DK, MB, and AB for unauthorised transactions; costs orders follow result, with Defendants' success on cross-claim and Plaintiffs' claim dismissed. No costs order for SB as claims against her were not determined on their merits nor pressed at hearing.

Parties
First Plaintiff/first Respondent to Interlocutory Process: Mary Balagiannis; Second Plaintiff/second Respondent to Interlocutory Process: Angeliki Balagiannis (also known as Angelique Balagiannis); First Defendant/first Cross Claimant to Interlocutory Process: Nicolas Balagiannis; Second Defendant/second Cross Claimant to Interlocutory Process: Reserve Hotels Pty Limited; Third Defendant/third Cross Claimant to Interlocutory Process: Sydney Hotel Management Pty Limited; Third Respondent to Interlocutory Process: Dimitri Kentrotis; Participant (no Order as to Costs): Susan Balagiannis
Jurisdiction
Australia
Judgment Date
07 May 2021
Procedural Posture
Equity Corporations List / Post Trial; Orders and Costs
Outcome
Plaintiffs' claim dismissed; Defendants' cross-claim/interlocutory process granted as to assignment and monetary orders; detailed orders as to costs.
Legal Topics
Costs, Contracts Review, Authority of Directors, Assignment of Rights
Corporations Contract Civil Procedure Costs Contracts Review Authority of Directors Assignment of Rights

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Parties

Mary Balagiannis

First Plaintiff/first Respondent to Interlocutory Process

Angeliki Balagiannis (also known as Angelique Balagiannis)

Second Plaintiff/second Respondent to Interlocutory Process

Nicolas Balagiannis

First Defendant/first Cross Claimant to Interlocutory Process

Reserve Hotels Pty Limited

Second Defendant/second Cross Claimant to Interlocutory Process

Sydney Hotel Management Pty Limited

Third Defendant/third Cross Claimant to Interlocutory Process

Dimitri Kentrotis

Third Respondent to Interlocutory Process

Susan Balagiannis

Participant (no Order as to Costs)

Procedural Posture

Equity Corporations List / Post Trial; Orders and Costs

Legal Issues

  1. 1 Whether the Deed of Assignment should be set aside under the Contracts Review Act 1980 (NSW)
  2. 2 Entitlement to judgment for unauthorised monetary transactions
  3. 3 Appropriate costs orders after dismissal and success on cross-claims

Ratio Decidendi

The Deed of Assignment was set aside under s 7(1) of the Contracts Review Act 1980 (NSW) due to unconscionability and undue influence; RHPL entitled to monetary judgment against DK, MB, and AB for unauthorised transactions; costs orders follow result, with Defendants' success on cross-claim and Plaintiffs' claim dismissed. No costs order for SB as claims against her were not determined on their merits nor pressed at hearing.

Court Disposition

Plaintiffs' claim dismissed; Defendants' cross-claim/interlocutory process granted as to assignment and monetary orders; detailed orders as to costs.

Orders

  • Plaintiffs' claim be dismissed.
  • The Deed of Assignment dated 9 July 2018 between Nicolas Balagiannis as assignor and Mary Balagiannis and Angelique Balagiannis as assignees be set aside pursuant to Contracts Review Act 1980 (NSW).