Brosnan v Katke (No 2) [2013] FCA 835

Brosnan v Katke (No 2) [2013] FCA 835

The applicants demonstrated a serious question to be tried regarding ownership and alleged misleading conduct, and that the balance of convenience favours restraining respondents from accessing company records because applicants, as management, can comply with discovery obligations while protecting privilege; no risk of non-disclosure or destruction of documents by applicants was established, nor was the respondents' claimed prejudice substantiated.

Parties
Applicant: Michael Brosnan; Applicant: Leon Brosnan; Applicant: Mary Brosnan; Applicant: Alan Gee; Applicant: Alan Bawden Grant; Applicant: Barbara Lee Grant; Applicant: Alan David Grant; Applicant: Michael Curley; Applicant: Graeme Joiner; Respondent: Jeffrey James Katke; Respondent: Metagenics Australia Pty Ltd; Respondent: Metagenics Inc; Respondent: Jeffrey Bland
Jurisdiction
Australia
Judgment Date
13 August 2013
Procedural Posture
Interlocutory Injunction Application / Interlocutory Stage
Outcome
Interlocutory injunction granted
Legal Topics
Discovery, Interlocutory Injunctions, Directors' Duties, Legal Professional Privilege
Corporations Law Civil Procedure Discovery Interlocutory Injunctions Directors' Duties Legal Professional Privilege

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Parties

Michael Brosnan

Applicant

Leon Brosnan

Applicant

Mary Brosnan

Applicant

Alan Gee

Applicant

Alan Bawden Grant

Applicant

Barbara Lee Grant

Applicant

Alan David Grant

Applicant

Michael Curley

Applicant

Graeme Joiner

Applicant

Jeffrey James Katke

Respondent

Metagenics Australia Pty Ltd

Respondent

Metagenics Inc

Respondent

Jeffrey Bland

Respondent

Procedural Posture

Interlocutory Injunction Application / Interlocutory Stage

Legal Issues

  1. 1 Whether interlocutory injunction should restrain respondents from accessing and copying documents of Health World Limited
  2. 2 Whether applicants should control discovery of Health World's documents owing to privilege/management circumstances
  3. 3 Balance of convenience regarding discovery process and potential prejudice

Ratio Decidendi

The applicants demonstrated a serious question to be tried regarding ownership and alleged misleading conduct, and that the balance of convenience favours restraining respondents from accessing company records because applicants, as management, can comply with discovery obligations while protecting privilege; no risk of non-disclosure or destruction of documents by applicants was established, nor was the respondents' claimed prejudice substantiated.

Court Disposition

Interlocutory injunction granted

Orders

  • The respondents are restrained from taking any step to attend and/or enter the offices of Health World Limited to retrieve, review and/or copy documents and from accessing, retrieving or obtaining any documents held on Health World's servers, computers or electronic devices, until further order.
  • Costs be reserved.