Seaman v Silvia [2018] FCA 97

Seaman v Silvia [2018] FCA 97

The applicant's proposed pleading disclosed no viable cause of action against the administrators in any capacity. Administrators owed no statutory or common law duties to the applicant as shareholder, creditor, or director; trust choses in action did not vest in him automatically upon his appointment as trustee; administrators' actions were not 'in trade or commerce'; and deficiencies in pleading further supported the refusal of leave. Accordingly, the application was dismissed.

Parties
Applicant: Joshua Robert Seaman; First Respondent: Brian Raymond Silvia; Second Respondent: Geoffrey Peter Granger
Jurisdiction
Australia
Judgment Date
16 February 2018
Procedural Posture
Application for Leave to Amend Statement of Claim / Interlocutory
Outcome
Application dismissed
Legal Topics
External Administration, Administrators' Duties, Trusts and Trustees, Assignment of Choses in Action, Misleading or Deceptive Conduct, Pleadings Amendment, Statutory Duties, Common Law Duties
Corporations Law Equity Practice and Procedure External Administration Administrators' Duties Trusts and Trustees Assignment of Choses in Action Misleading or Deceptive Conduct +3 more

Case Brief

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Parties

Joshua Robert Seaman

Applicant

Brian Raymond Silvia

First Respondent

Geoffrey Peter Granger

Second Respondent

Procedural Posture

Application for Leave to Amend Statement of Claim / Interlocutory

Legal Issues

  1. 1 Whether the applicant, Mr Seaman, is entitled to leave to file a further amended originating application and statement of claim against former administrators of a company.
  2. 2 Whether the administrators owed statutory or common law duties to Mr Seaman in his capacities as creditor, shareholder, director, or trustee.
  3. 3 Whether causes of action accrued to the company as trustee vested in Mr Seaman upon his appointment as new trustee.

Ratio Decidendi

The applicant's proposed pleading disclosed no viable cause of action against the administrators in any capacity. Administrators owed no statutory or common law duties to the applicant as shareholder, creditor, or director; trust choses in action did not vest in him automatically upon his appointment as trustee; administrators' actions were not 'in trade or commerce'; and deficiencies in pleading further supported the refusal of leave. Accordingly, the application was dismissed.

Court Disposition

Application dismissed

Orders

  • The application dated 14 November 2017 for leave to file and serve a further amended Originating Application and a further amended Statement of Claim be dismissed.
  • The parties are to be heard on the question of costs.