Lewis Securities Ltd (in liq) v Carter (No 2) [2018] NSWCA 159

Lewis Securities Ltd (in liq) v Carter (No 2) [2018] NSWCA 159

Judgment for both appellants in full amount as both were entitled to equitable compensation for dishonest breach of duty assisted by respondents; submissions seeking inquiry or declaratory relief misplaced and outside scope granted by Court; no reduction for set-off ordered at this stage but right not precluded on execution; Calderbank offers did not warrant special costs order; pre-judgment interest fully awarded; costs allocated having regard to partial success and appropriate return of security for costs.

Parties
First Appellant: Lewis Securities Ltd (in liq); Second Appellant: LSL Holdings Pty Ltd (in liq); First Respondent: Marilyn Carter; Second Respondent: Robert Miller
Jurisdiction
Australia
Judgment Date
24 July 2018
Procedural Posture
Appeal / Consequential Orders Following Appellate Judgment
Outcome
Judgment entered for appellants against respondents for $2,287,068.57 with consequential costs and return of security for costs ordered.
Legal Topics
Fiduciary Duties, Knowingly Assisting Breach of Duty, Equitable Compensation, Costs, Set Off, Security for Costs, Judgment Creditor Identity
Equity Corporations Law Civil Procedure Fiduciary Duties Knowingly Assisting Breach of Duty Equitable Compensation Costs Set Off +2 more

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Parties

Lewis Securities Ltd (in liq)

First Appellant

LSL Holdings Pty Ltd (in liq)

Second Appellant

Marilyn Carter

First Respondent

Robert Miller

Second Respondent

Procedural Posture

Appeal / Consequential Orders Following Appellate Judgment

Legal Issues

  1. 1 Whether both appellants are entitled to judgment as creditors
  2. 2 Calculation and entitlement to equitable compensation and pre-judgment interest
  3. 3 Claimed set-off amounts for proofs of debt

Ratio Decidendi

Judgment for both appellants in full amount as both were entitled to equitable compensation for dishonest breach of duty assisted by respondents; submissions seeking inquiry or declaratory relief misplaced and outside scope granted by Court; no reduction for set-off ordered at this stage but right not precluded on execution; Calderbank offers did not warrant special costs order; pre-judgment interest fully awarded; costs allocated having regard to partial success and appropriate return of security for costs.

Court Disposition

Judgment entered for appellants against respondents for $2,287,068.57 with consequential costs and return of security for costs ordered.

Orders

  • Judgment entered in favour of Lewis Securities Ltd (in liq) and LSL Holdings Pty Ltd (in liq) against Marilyn Carter and Robert Miller in amount of $2,287,068.57 to take effect on 7 June 2018.
  • Post-judgment interest period extended by 28 days from date of orders pursuant to s 101(3) Civil Procedure Act 2005 (NSW).