Leawell Pty Ltd as Trustee for the Garton Smith Trust, in the matter of Watershed Premium Wines Ltd v Watershed Premium Wines Ltd (No 2) [2009] FCA 1145

The impugned paragraphs of the substituted statement of claim were struck out because they failed to adequately plead material facts necessary to disclose causes of action for related party transactions, involvement in contraventions, conspiracy, and oppression, but leave was granted to replead.

Parties: First Applicant: Leawell Pty Ltd (ACN 008 988 789) as Trustee for the Garton Smith Trust and Others; Second Applicant: Laurence Factor; Third Applicant: Laurence Factor as Trustee for the Factor Family Trust No 1; First Respondent: Watershed Premium Wines Ltd (ACN 089 812 591); Second Respondent: Geoffrey Thomas Barrett; Third Respondent: Dr Richard Ernst Hill (as Director); Fourth Respondent: Ronald George Martin; Fifth Respondent: Peter Charles Sartori; Sixth Respondent: Brett Robins; Seventh Respondent: Kentro Pty Ltd (ACN 009 052 895) as Trustee for the Omnium Investments Superannuation Fund; Eighth Respondent: Kentro Pty Ltd (ACN 009 052 895) as Trustee for the Richard Hill Family Account; Ninth Respondent: Dr Richard Ernst Hill (as Shareholder); Tenth Respondent: Gregory Paul Martin and Glenn Lindsay Martin; Eleventh Respondent: Shadmar Pty Ltd (ACN 009 006 366)
Jurisdiction: Australia
Judgment Date: 08 October 2009
Procedural Posture: Commercial (corporations) / Interlocutory Application—strike Out Pleadings
Outcome: Strike out application granted with liberty to replead
Legal Topics: Related Party Transactions, Directors’ Duties, Oppression, Conspiracy, Strike Out Applications, Pleading Standards

Corporations Law Equity Civil Procedure Related Party Transactions Directors’ Duties Oppression Conspiracy Strike Out Applications +1 more

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Parties

Leawell Pty Ltd (ACN 008 988 789) as Trustee for the Garton Smith Trust and Others

First Applicant

Laurence Factor

Second Applicant

Laurence Factor as Trustee for the Factor Family Trust No 1

Third Applicant

Watershed Premium Wines Ltd (ACN 089 812 591)

First Respondent

Geoffrey Thomas Barrett

Second Respondent

Dr Richard Ernst Hill (as Director)

Third Respondent

Ronald George Martin

Fourth Respondent

Peter Charles Sartori

Fifth Respondent

Brett Robins

Sixth Respondent

Kentro Pty Ltd (ACN 009 052 895) as Trustee for the Omnium Investments Superannuation Fund

Seventh Respondent

Kentro Pty Ltd (ACN 009 052 895) as Trustee for the Richard Hill Family Account

Eighth Respondent

Dr Richard Ernst Hill (as Shareholder)

Ninth Respondent

Gregory Paul Martin and Glenn Lindsay Martin

Tenth Respondent

Shadmar Pty Ltd (ACN 009 006 366)

Eleventh Respondent

Procedural Posture

Commercial (corporations) / Interlocutory Application—strike Out Pleadings

Legal Issues

1 Whether certain paragraphs of the substituted statement of claim fail to disclose a cause of action or are embarrassing
2 Who bears the onus of pleading exceptions under s 208 of the Corporations Act
3 Requirements for pleading involvement in a contravention under s 79 of the Corporations Act

Ratio Decidendi

Court Disposition

Strike out application granted with liberty to replead

Orders

Paragraphs [54], [70], [71], [72], [73], [74], [75], [78], [80] and [81] of the substituted statement of claim are struck out with liberty to replead.
Applicants to pay the costs of the respondents' applications of 23 June 2009 and 24 June 2009, to be taxed if not agreed.