Cassaniti v Katavic (No 2) [2023] NSWCA 107

Cassaniti v Katavic (No 2) [2023] NSWCA 107

The declaration setting aside clauses 9(e) and (f) of the unitholders' agreement for misleading conduct was set aside because causation of loss (necessary for statutory rescission) was not established; further, the claim of breach of trust by the trustee in granting security over Moncrieff land was not proven, as the relevant payments were not trust assets and agreements allowed the trustee's actions.

Jurisdiction
Australia
Judgment Date
23 May 2023
Procedural Posture
Leave to Appeal and Appeal / Court of Appeal Decision
Outcome
Appeal allowed in part
Legal Topics
['misleading and Deceptive Conduct' 'trusts and Trustees' 'breach of Trust' 'statutory Relief' 'interlocutory Orders' 'contractual Representations']
['contracts' 'equity' 'appeals'] ['misleading and Deceptive Conduct' 'trusts and Trustees' 'breach of Trust' 'statutory Relief' 'interlocutory Orders' 'contractual Representations']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Leave to Appeal and Appeal / Court of Appeal Decision

Legal Issues

  1. 1 ['Whether Mr Cassaniti engaged in misleading or deceptive conduct under s 18 of the ACL by representing the unitholders\' agreement as "standard" or "simple"' "Whether Mr Katavic relied on the alleged misrepresentation in entering the unitholders' agreement" 'Whether relief by way of statutory rescission was correctly granted' 'Whether Antalija No 4 breached its duty as trustee in granting security over trust property and preferring interests of a unitholder']

Ratio Decidendi

The declaration setting aside clauses 9(e) and (f) of the unitholders' agreement for misleading conduct was set aside because causation of loss (necessary for statutory rescission) was not established; further, the claim of breach of trust by the trustee in granting security over Moncrieff land was not proven, as the relevant payments were not trust assets and agreements allowed the trustee's actions.

Court Disposition

Appeal allowed in part

Orders

  • ['Leave to appeal granted against first and second respondents' 'Dismiss leave to appeal against third respondent with costs' "Appellants' notice of motion (re costs amendments) dismissed with costs" "Refuse appellants' oral application for further amendments except limited reference to June 2017 security...