Field v Jenolan Caves Resort Pty Ltd [2009] NSWSC 491

Field v Jenolan Caves Resort Pty Ltd [2009] NSWSC 491

The claims Mr Field sought to advance concerning the alleged invalidity of the administrator's appointment, the Jenolan Deed and transfer, and the alleged mortgagee sale at an undervalue were causes of action belonging exclusively to JCR. Mr Field was not a member or creditor of JCR, had not obtained and could not obtain derivative action leave as a director for a company in liquidation, and had no special interest separate from JCR. The statement of claim therefore disclosed no viable cause of action by Mr Field against St George, and because the claims were not available to him, leave under s 500(2) to proceed against JCR should also be refused.

Jurisdiction
Australia
Judgment Date
05 June 2009
Procedural Posture
Interlocutory Applications in Administrative Law List and Corporations List Proceedings / Application by St George for Summary Dismissal or Strike Out; Application by Mr Field for Leave Under S 500(2) of the Corporations Act to Commence and Continue Proceedings Against a Company in Liquidation
Outcome
Interlocutory applications in both proceedings dismissed. Question of costs reserved.
Legal Topics
['summary Dismissal' 'strike Out' 'proper Plaintiff Rule' 'company in Liquidation' 'derivative Actions' 'standing' 'leave to Proceed Against Company in Liquidation' 'mortgagee Sale' 'statutory Power of Appointment']
['procedure' 'corporations' 'administrative Law'] ['summary Dismissal' 'strike Out' 'proper Plaintiff Rule' 'company in Liquidation' 'derivative Actions' 'standing' 'leave to Proceed Against Company in Liquidation' 'mortgagee Sale' 'statutory Power of Appointment']

Case Brief

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Procedural Posture

Interlocutory Applications in Administrative Law List and Corporations List Proceedings / Application by St George for Summary Dismissal or Strike Out; Application by Mr Field for Leave Under S 500(2) of the Corporations Act to Commence and Continue Proceedings Against a Company in Liquidation

Legal Issues

  1. 1 ["Whether Mr Field had standing to pursue claims based on alleged invalidity of the Reserve Trust administrator's appointment, alleged invalidity of the Jenolan Deed and transfer, and alleged sale by St George at an undervalue." 'Whether the causes of action asserted belonged exclusively to JCR rather than to Mr Field.' 'Whether Mr Field could sue on behalf of JCR as director, member, creditor, or person with a special interest.' 'Whether leave should be granted under s 500(2) of the Corporations Act to proceed against JCR, a company in liquidation.' 'Whether the Administrative Law List proceedings should be summarily dismissed as against St George.']

Ratio Decidendi

The claims Mr Field sought to advance concerning the alleged invalidity of the administrator's appointment, the Jenolan Deed and transfer, and the alleged mortgagee sale at an undervalue were causes of action belonging exclusively to JCR. Mr Field was not a member or creditor of JCR, had not obtained and could not obtain derivative action leave as a director for a company in liquidation, and had no special interest separate from JCR. The statement of claim therefore disclosed no viable cause of action by Mr Field against St George, and because the claims were not available to him, leave under s 500(2) to proceed against JCR should also be refused.

Court Disposition

Interlocutory applications in both proceedings dismissed. Question of costs reserved.

Orders

  • ['Administrative Law List proceedings dismissed as against St George.' "Mr Field's application for leave under s 500(2) of the Corporations Act to proceed against JCR dismissed." 'Question of costs reserved.']