Akierman Holdings Pty Limited v Akerman (No 3); In the matter of Akierman Holdings Pty Limited (No 2) [2021] NSWSC 869

Akierman Holdings Pty Limited v Akerman (No 3); In the matter of Akierman Holdings Pty Limited (No 2) [2021] NSWSC 869

Costs are to follow the event distributively: the Company is entitled to its costs except for costs thrown away by amendment, costs of the unsuccessful claim concerning 5 and 7 Miller Street, and solely referable cross-claim costs. Mr Akerman is entitled to rectification cross-claim costs from Ms Dar. Ms Dar is to receive costs for s 237 proceeding from Mr Akerman. Pre-judgment interest calculation on the running account should not compound accrued interest when account moves from debit to credit, to avoid impermissible compounding under CPA s 100.

Jurisdiction
Australia
Judgment Date
19 July 2021
Procedural Posture
Company Proceedings and S 237 Proceedings (corporations List, Equity) / Post Trial Judgment and Costs Orders
Outcome
Company succeeds in three compensation claims against director, fails on fourth; rectification cross-claim succeeds, other cross-claims fail; s 237 costs order in favour of Ms Dar; judgment entered for Company.
Legal Topics
["director's Duties" 'authority of Directors' 'share Register Rectification' 'party/party Costs' 'interest Calculation' 'derivative Actions Under Corporations Act S 237']
['corporations Law' 'equity' 'civil Procedure'] ["director's Duties" 'authority of Directors' 'share Register Rectification' 'party/party Costs' 'interest Calculation' 'derivative Actions Under Corporations Act S 237']

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Procedural Posture

Company Proceedings and S 237 Proceedings (corporations List, Equity) / Post Trial Judgment and Costs Orders

Legal Issues

  1. 1 ['Calculation of pre-judgment interest on running account when account moves from debit to credit' 'Apportionment of costs where plaintiff partly succeeds and defendant partly succeeds' 'Entitlement to costs of s 237 proceedings and variation of previous order on costs' "Director's indemnity for successful defence under company constitution"]

Ratio Decidendi

Costs are to follow the event distributively: the Company is entitled to its costs except for costs thrown away by amendment, costs of the unsuccessful claim concerning 5 and 7 Miller Street, and solely referable cross-claim costs. Mr Akerman is entitled to rectification cross-claim costs from Ms Dar. Ms Dar is to receive costs for s 237 proceeding from Mr Akerman. Pre-judgment interest calculation on the running account should not compound accrued interest when account moves from debit to credit, to avoid impermissible compounding under CPA s 100.

Court Disposition

Company succeeds in three compensation claims against director, fails on fourth; rectification cross-claim succeeds, other cross-claims fail; s 237 costs order in favour of Ms Dar; judgment entered for Company.

Orders

  • ["Judgment for plaintiff on claims regarding 9 Miller Street, director's fees and legal fee payments totalling $1,989,458 (including interest) against Mr Akerman." "Plaintiff's claim otherwise dismissed (re: 5 and 7 Miller Street)." 'Cross-claim: rectification order of share register nunc pro tunc as specified;...