Kandt Stening Group Pty Ltd v Stening [2006] NSWSC 307

Kandt Stening Group Pty Ltd v Stening [2006] NSWSC 307

Leave to bring a cross-claim out of time and for statutory derivative action is granted in principle, as the relief sought is connected with the subject matter of the proceedings and requirements under section 237 Corporations Act 2001 are satisfied. However, basis for account of profits claim must be properly pleaded before leave to file is granted.

Jurisdiction
Australia
Judgment Date
13 April 2006
Procedural Posture
Equity Proceeding / Notice of Motion Seeking Leave to File Cross Claim and Leave for Statutory Derivative Action
Outcome
Leave to cross-claim allowed in principle and statutory derivative action permitted, subject to requirement to plead basis of account of profits claim. Final leave to file cross-claim not granted until pleading deficiency remedied.
Legal Topics
['supreme Court Procedure' 'leave to Bring Cross Claim Out of Time' 'relationship Between Cross Claim and Principal Claim' 'construction of Section 22 Civil Procedure Act 2005' 'statutory Derivative Action Under Section 237 Corporations Act 2001' 'pleading Basis for Account of Profits Claim']
['procedure' 'corporations'] ['supreme Court Procedure' 'leave to Bring Cross Claim Out of Time' 'relationship Between Cross Claim and Principal Claim' 'construction of Section 22 Civil Procedure Act 2005' 'statutory Derivative Action Under Section 237 Corporations Act 2001' 'pleading Basis for Account of Profits Claim']

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Procedural Posture

Equity Proceeding / Notice of Motion Seeking Leave to File Cross Claim and Leave for Statutory Derivative Action

Legal Issues

  1. 1 ['Should leave be granted to bring a cross-claim out of time?' 'Is the relationship between the cross-claim and the subject of the proceedings sufficient under section 22 Civil Procedure Act 2005?' 'Should leave be granted for a statutory derivative action under section 237 Corporations Act 2001?' 'Is the basis for an account of profits claim sufficiently pleaded?']

Ratio Decidendi

Leave to bring a cross-claim out of time and for statutory derivative action is granted in principle, as the relief sought is connected with the subject matter of the proceedings and requirements under section 237 Corporations Act 2001 are satisfied. However, basis for account of profits claim must be properly pleaded before leave to file is granted.

Court Disposition

Leave to cross-claim allowed in principle and statutory derivative action permitted, subject to requirement to plead basis of account of profits claim. Final leave to file cross-claim not granted until pleading deficiency remedied.

Orders

  • ['Order granting leave to bring cross-claim in the name of PSA under section 237 Corporations Act 2001.' 'Order granting leave for cross-claim to be brought out of time.' 'Direction to parties to bring in Short Minutes of Order at specified date.']