HID Global Corporation v Keycorp Limited [2009] FCA 1343

HID Global Corporation v Keycorp Limited [2009] FCA 1343

Paragraph 46 was defective because it alleged loss of the chance to acquire Keycorp's entire business without pleading the causal connection between that loss and the alleged representations; the proposed amendment, alleging that HID Global relied on the representations and turned away from pursuing the entire business, cured that pleading defect. Because the Directors had sufficiently alerted HID Global to the defect and were successful in substance on the motion, they were entitled to their costs, while Keycorp, not being a party to the motion and not having risked costs, was not entitled to a separate costs order for attendance.

Jurisdiction
Australia
Judgment Date
23 October 2009
Procedural Posture
Proceeding Seeking Damages for Alleged Contraventions of the Trade Practices Act 1974 (cth) and the Fair Trading Act 1987 (nsw) / Interlocutory Notice of Motion by the Second and Third Respondents to Strike Out Paragraph 46 of the Statement of Claim; Application for Leave to Amend and Costs Determination
Outcome
Leave to amend was granted, the notice of motion was dismissed, HID Global was ordered to pay the second and third respondents' costs of the motion, and Keycorp's costs of attendance were left as costs in the proceeding.
Legal Topics
['misleading or Deceptive Conduct' 'pleadings' 'causation' 'loss of Chance' 'strike Out Application' 'amendment of Statement of Claim' 'costs']
['trade Practices' 'fair Trading' 'civil Procedure'] ['misleading or Deceptive Conduct' 'pleadings' 'causation' 'loss of Chance' 'strike Out Application' 'amendment of Statement of Claim' 'costs']

Case Brief

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Procedural Posture

Proceeding Seeking Damages for Alleged Contraventions of the Trade Practices Act 1974 (cth) and the Fair Trading Act 1987 (nsw) / Interlocutory Notice of Motion by the Second and Third Respondents to Strike Out Paragraph 46 of the Statement of Claim; Application for Leave to Amend and Costs Determination

Legal Issues

  1. 1 ["Whether paragraph 46 of the statement of claim was defective because it failed to allege a causal connection between the alleged misleading representations and the claimed loss of opportunity to acquire Keycorp's entire business." 'Whether HID Global should have leave to file an amended statement of claim alleging reliance as the causal connection.' 'Whether the second and third respondents, and Keycorp, should receive costs of the motion or attendance.']

Ratio Decidendi

Paragraph 46 was defective because it alleged loss of the chance to acquire Keycorp's entire business without pleading the causal connection between that loss and the alleged representations; the proposed amendment, alleging that HID Global relied on the representations and turned away from pursuing the entire business, cured that pleading defect. Because the Directors had sufficiently alerted HID Global to the defect and were successful in substance on the motion, they were entitled to their costs, while Keycorp, not being a party to the motion and not having risked costs, was not entitled to a separate costs order for attendance.

Court Disposition

Leave to amend was granted, the notice of motion was dismissed, HID Global was ordered to pay the second and third respondents' costs of the motion, and Keycorp's costs of attendance were left as costs in the proceeding.

Orders

  • ["Leave be granted to the applicant to file an amended statement of claim in the form initialled by Emmett J and dated with today's date." 'The notice of motion filed on 24 September 2009 be dismissed.' "The applicant pay the second and third respondents' costs of the motion." "As between the applicant and the first...