Layrir Pty Ltd & 44 ors v Jack Jordan & 6 ors [2006] NSWSC 1228

Layrir Pty Ltd & 44 ors v Jack Jordan & 6 ors [2006] NSWSC 1228

It would be an inappropriate exercise of discretion to strike out the claims against the directors at this stage, as material facts have been pleaded and discovery/interrogatories may yield further evidence. Relief sought by the directors is refused, costs will be costs in the cause.

Parties
Applicants: Jack Jordan and ors; Respondents: Layrir Pty Limited and ors
Jurisdiction
Australia
Judgment Date
20 November 2006
Procedural Posture
Motion / Interlocutory
Outcome
Notice of Motion dismissed
Legal Topics
Strike Out Application, Accessory Liability, Misleading or Deceptive Conduct, Uniform Civil Procedure Rules, Summary Dismissal
Civil Procedure Professional Negligence Strike Out Application Accessory Liability Misleading or Deceptive Conduct Uniform Civil Procedure Rules Summary Dismissal

Case Brief

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Parties

Jack Jordan and ors

Applicants

Layrir Pty Limited and ors

Respondents

Procedural Posture

Motion / Interlocutory

Legal Issues

  1. 1 Whether the claims against certain directors should be struck out for failing to plead material facts of knowing involvement in alleged contraventions under the Trade Practices Act
  2. 2 Whether the pleading provides a reasonable cause of action under s75B(c) of the Trade Practices Act
  3. 3 Appropriateness of summary dismissal given evidentiary gaps potentially remediable by discovery or interrogatories

Ratio Decidendi

It would be an inappropriate exercise of discretion to strike out the claims against the directors at this stage, as material facts have been pleaded and discovery/interrogatories may yield further evidence. Relief sought by the directors is refused, costs will be costs in the cause.

Court Disposition

Notice of Motion dismissed

Orders

  • Leave to the Plaintiffs to file Second Amended Statement of Claim within 14 days
  • Notice of Motion is dismissed