Huntley Management Limited (ACN 089 240 513) v Australian Olives Limited (ACN 078 885 042) [2009] FCA 1081

Huntley Management Limited (ACN 089 240 513) v Australian Olives Limited (ACN 078 885 042) [2009] FCA 1081

HML, as current responsible entity, was properly joined as a party and empowered to bring these proceedings by virtue of the Corporations Act and the scheme's constitution. The proceedings were neither an abuse of process nor improperly instituted, as the claims concerned losses to the scheme and/or its members and investors had either expressly or impliedly authorised litigation. Accordingly, the respondents' motion to strike out HML as a party and challenge the authority of the solicitors to act was dismissed.

Jurisdiction
Australia
Judgment Date
24 September 2009
Procedural Posture
Corporations Managed Investment Scheme Proceeding / Interlocutory Application for Amendment, Strike Out, and Challenge to Authority to Sue
Outcome
Respondents’ motion and objections dismissed; leave granted to file Amended Statement of Claim; related costs orders as set out.
Legal Topics
['responsible Entity Powers and Duties' 'standing to Sue' 'misleading or Deceptive Conduct' 'director Duties' 'statutory Interpretation' 'striking Out Parties' 'authority to Commence Litigation']
['corporations Law' 'managed Investment Schemes' 'civil Procedure'] ['responsible Entity Powers and Duties' 'standing to Sue' 'misleading or Deceptive Conduct' 'director Duties' 'statutory Interpretation' 'striking Out Parties' 'authority to Commence Litigation']

Case Brief

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Procedural Posture

Corporations Managed Investment Scheme Proceeding / Interlocutory Application for Amendment, Strike Out, and Challenge to Authority to Sue

Legal Issues

  1. 1 ['Whether Huntley Management Limited (HML), as responsible entity, is a proper party to the proceeding' "Whether the applicant investors' solicitors had authority to commence proceedings on their behalf" 'Whether the claims pleaded involve loss suffered by the scheme or individual members' 'Scope and effect of statutory duties under the Corporations Act and scheme constitution regarding litigation by responsible entity']

Ratio Decidendi

HML, as current responsible entity, was properly joined as a party and empowered to bring these proceedings by virtue of the Corporations Act and the scheme's constitution. The proceedings were neither an abuse of process nor improperly instituted, as the claims concerned losses to the scheme and/or its members and investors had either expressly or impliedly authorised litigation. Accordingly, the respondents' motion to strike out HML as a party and challenge the authority of the solicitors to act was dismissed.

Court Disposition

Respondents’ motion and objections dismissed; leave granted to file Amended Statement of Claim; related costs orders as set out.

Orders

  • ['Leave granted for applicants to file and serve the Amended Statement of Claim filed on 8 September 2009.' "Applicants pay respondents' costs thrown away by reason of the Amended Statement of Claim, to be taxed in default of agreement." "Respondents' further amended notice of motion dated 21 August 2009 is...