In the matter of Coastal Beaches Pty Ltd [2019] NSWSC 1681

In the matter of Coastal Beaches Pty Ltd [2019] NSWSC 1681

Although the Plaintiffs' Statement of Claim had very substantial deficiencies and did not disclose the material facts, matters or circumstances on which the claims against the Second Defendant were based, the Court was not satisfied with sufficient certainty that a case against her, particularly by accessorial liability or knowing receipt in respect of breach of trust, could not succeed if properly pleaded and supported by evidence. However, the Statement of Claim was embarrassing because it failed to plead material facts supporting the claims against the Second Defendant and did not sufficiently articulate the case she had to meet, so it was struck out with leave to replead.

Jurisdiction
Australia
Judgment Date
19 November 2019
Procedural Posture
Equity Corporations List; Civil Procedure Application for Summary Dismissal and Strike Out of Pleading / Notice of Motion by the Second Defendant Seeking Dismissal of Proceedings Against Her, With Alternative Application to Strike Out the Statement of Claim
Outcome
Summary dismissal was not granted; the Plaintiffs' Statement of Claim was struck out with leave to replead, and costs of the application were ordered to be paid to the Second Defendant forthwith.
Legal Topics
['summary Dismissal' 'strike Out of Pleadings' "breach of Directors' Duties" 'shareholder Oppression' 'breach of Trust' 'knowing Involvement' 'knowing Receipt' 'misleading or Deceptive Conduct' 'unconscionable Conduct']
['civil Procedure' 'corporations' 'equity' 'australian Consumer Law'] ['summary Dismissal' 'strike Out of Pleadings' "breach of Directors' Duties" 'shareholder Oppression' 'breach of Trust' 'knowing Involvement' 'knowing Receipt' 'misleading or Deceptive Conduct' 'unconscionable Conduct']

Case Brief

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Procedural Posture

Equity Corporations List; Civil Procedure Application for Summary Dismissal and Strike Out of Pleading / Notice of Motion by the Second Defendant Seeking Dismissal of Proceedings Against Her, With Alternative Application to Strike Out the Statement of Claim

Legal Issues

  1. 1 ['Whether the proceedings against the Second Defendant should be summarily dismissed.' 'Whether the Statement of Claim properly pleaded material facts supporting claims against the Second Defendant.' 'Whether the Statement of Claim should be struck out with leave to replead.']

Ratio Decidendi

Although the Plaintiffs' Statement of Claim had very substantial deficiencies and did not disclose the material facts, matters or circumstances on which the claims against the Second Defendant were based, the Court was not satisfied with sufficient certainty that a case against her, particularly by accessorial liability or knowing receipt in respect of breach of trust, could not succeed if properly pleaded and supported by evidence. However, the Statement of Claim was embarrassing because it failed to plead material facts supporting the claims against the Second Defendant and did not sufficiently articulate the case she had to meet, so it was struck out with leave to replead.

Court Disposition

Summary dismissal was not granted; the Plaintiffs' Statement of Claim was struck out with leave to replead, and costs of the application were ordered to be paid to the Second Defendant forthwith.

Orders

  • ["The Plaintiffs' Statement of Claim filed 8 November 2019 be struck out with leave to replead." 'The Plaintiffs must pay the costs of this application, as agreed or as assessed.' 'The costs payable to Ms Krilic in respect of this application be paid forthwith.']