Morris v McConaghy Australia Pty Ltd (Amendment Application) [2019] FCA 576

Morris v McConaghy Australia Pty Ltd (Amendment Application) [2019] FCA 576

The Court determined that while some amendments, such as the claim for dissolution of the second respondent, should not be permitted, others, including claim for winding up under inherent jurisdiction, are arguable given contestable authority and should not be struck out summarily. Allegations of involvement in Fair Work Act contravention require proof of knowledge and are not sufficiently pleaded; leave to amend statement of claim in that respect is declined. Prayer regarding unconscionable conduct and implied contractual term are weak but not inevitably doomed, and thus should be allowed to proceed. Vague allegations regarding 'services' in Competition and Consumer Act claim are struck...

Jurisdiction
Australia
Judgment Date
29 April 2019
Procedural Posture
Amendment Application / Interlocutory Judgment on Application to Amend Originating Application and Strike Out Pleadings
Outcome
Leave granted in part to amend originating application; certain proposed prayers and paragraphs struck out; directions made for parties to submit short minutes of order.
Legal Topics
['leave to Amend Originating Application' 'strike Out of Statement of Claim' 'winding Up Foreign Corporations' 'fiduciary Duties' 'implied Contractual Term' 'unconscionable Conduct' 'joint Venture' 'fair Work Act Contravention']
['practice and Procedure' 'corporations'] ['leave to Amend Originating Application' 'strike Out of Statement of Claim' 'winding Up Foreign Corporations' 'fiduciary Duties' 'implied Contractual Term' 'unconscionable Conduct' 'joint Venture' 'fair Work Act Contravention']

Case Brief

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Procedural Posture

Amendment Application / Interlocutory Judgment on Application to Amend Originating Application and Strike Out Pleadings

Legal Issues

  1. 1 ['Whether leave should be granted to amend originating application' 'Whether paragraphs of statement of claim should be struck out for vagueness or lack of maintainability' 'Whether the Court has inherent or implied jurisdiction to wind up a foreign corporation outside Corporations Act' 'Whether claim for breach of fiduciary duty and partnership/quasi-partnership is maintainable' 'Whether claim for unconscionable conduct is properly pleaded' 'Whether claims for involvement in contravention under s 550 of Fair Work Act require proof of knowledge']

Ratio Decidendi

The Court determined that while some amendments, such as the claim for dissolution of the second respondent, should not be permitted, others, including claim for winding up under inherent jurisdiction, are arguable given contestable authority and should not be struck out summarily. Allegations of involvement in Fair Work Act contravention require proof of knowledge and are not sufficiently pleaded; leave to amend statement of claim in that respect is declined. Prayer regarding unconscionable conduct and implied contractual term are weak but not inevitably doomed, and thus should be allowed to proceed. Vague allegations regarding 'services' in Competition and Consumer Act claim are struck...

Court Disposition

Leave granted in part to amend originating application; certain proposed prayers and paragraphs struck out; directions made for parties to submit short minutes of order.

Orders

  • ['The parties provide short minutes of order giving effect to these reasons by 4 pm on 6 May 2019.' 'The matter be listed for a case management hearing on 16 May 2019 at 9.30 am.']