McLaughlin v Daily Telegraph Newspaper Company Limited [1906] HCA 78

McLaughlin v Daily Telegraph Newspaper Company Limited [1906] HCA 78

The appellant's indemnity obligation is limited to the balance received from the sale of shares, less any amounts paid or secured to transferrees for repayment of purchase money. The respondent company cannot claim indemnity for funds for which the appellant or his wife remain liable to repay transferrees, and a reasonable time is allowed for appellant to pay or secure such repayments. The judgment is to be varied accordingly and costs omitted.

Parties
Appellant: McLaughlin; Respondents: Daily Telegraph Newspaper Company Limited
Jurisdiction
Australia
Judgment Date
10 December 1906
Procedural Posture
Appeal / High Court Appeal From Supreme Court of New South Wales, Judgment Varied and Remitted
Outcome
Appeal allowed in part; judgment of Walker J. varied; cause remitted to Supreme Court to give effect to varied judgment.
Legal Topics
Rectification of Share Register, Indemnity, Lien on Shares, Principal and Surety, Loss From Share Transfers
Company Law Equity Rectification of Share Register Indemnity Lien on Shares Principal and Surety Loss From Share Transfers

Case Brief

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Parties

McLaughlin

Appellant

Daily Telegraph Newspaper Company Limited

Respondents

Procedural Posture

Appeal / High Court Appeal From Supreme Court of New South Wales, Judgment Varied and Remitted

Legal Issues

  1. 1 Authority of counsel to submit indemnity
  2. 2 Interpretation of an indemnity undertaking
  3. 3 Limits of liability for indemnity

Ratio Decidendi

The appellant's indemnity obligation is limited to the balance received from the sale of shares, less any amounts paid or secured to transferrees for repayment of purchase money. The respondent company cannot claim indemnity for funds for which the appellant or his wife remain liable to repay transferrees, and a reasonable time is allowed for appellant to pay or secure such repayments. The judgment is to be varied accordingly and costs omitted.

Court Disposition

Appeal allowed in part; judgment of Walker J. varied; cause remitted to Supreme Court to give effect to varied judgment.

Orders

  • Declaration that appellant is entitled to deduct from the sum received by Mrs. McLaughlin (£4,603 9s. 5d.) any amounts repaid or secured for the benefit of transferrees as repayment of purchase money.
  • Inquiry directed as to amounts repaid or secured within three months or further time as Court allows; balance to be certified.