Antoun v Russo (No 2) [2018] NSWSC 1662

Antoun v Russo (No 2) [2018] NSWSC 1662

The proceedings were dismissed because the pleadings disclosed no maintainable cause of action against any defendant. The first complaint was barred as a personal claim by the plaintiff because any right to sue for the alleged wrongful transfer of Transformer's share in Global belonged to Transformer, not its shareholders, under the reflective loss principle. The second and third complaints also did not disclose any cause of action against the defendants, and no amendment could cure that defect. Costs were ordered because there was no reason to depart from the general rule that costs follow the event.

Jurisdiction
Australia
Judgment Date
01 November 2018
Procedural Posture
Common Law Proceedings; Application to Dismiss Proceedings for No Reasonable Cause of Action / Notices of Motion by Defendants to Dismiss Proceedings or Strike Out Pleadings
Outcome
Proceedings dismissed pursuant to Uniform Civil Procedure Rules 2005 (NSW), r 13.4(1)(b), with costs ordered against the plaintiff.
Legal Topics
['pleadings' 'application to Dismiss Proceedings' 'no Reasonable Cause of Action' 'reflective Loss' 'costs Follow the Event']
['practice and Procedure' 'civil Procedure'] ['pleadings' 'application to Dismiss Proceedings' 'no Reasonable Cause of Action' 'reflective Loss' 'costs Follow the Event']

Case Brief

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Procedural Posture

Common Law Proceedings; Application to Dismiss Proceedings for No Reasonable Cause of Action / Notices of Motion by Defendants to Dismiss Proceedings or Strike Out Pleadings

Legal Issues

  1. 1 ['Whether the statement of claim or amended statement of claim disclosed any reasonable cause of action against the defendants.' 'Whether the plaintiff could sue personally for alleged loss arising from the transfer of a share owned by The Transformer Group Pty Ltd in Global Human Resources Group Pty Ltd.' 'Whether leave to replead or referral for pro bono assistance would have utility.' 'Whether costs should be ordered in favour of the successful defendants.']

Ratio Decidendi

The proceedings were dismissed because the pleadings disclosed no maintainable cause of action against any defendant. The first complaint was barred as a personal claim by the plaintiff because any right to sue for the alleged wrongful transfer of Transformer's share in Global belonged to Transformer, not its shareholders, under the reflective loss principle. The second and third complaints also did not disclose any cause of action against the defendants, and no amendment could cure that defect. Costs were ordered because there was no reason to depart from the general rule that costs follow the event.

Court Disposition

Proceedings dismissed pursuant to Uniform Civil Procedure Rules 2005 (NSW), r 13.4(1)(b), with costs ordered against the plaintiff.

Orders

  • ['Dismiss the proceedings pursuant to Uniform Civil Procedure Rules 2005 (NSW), r 13.4(1)(b).' "Order the plaintiff to pay the defendants' costs of the proceedings, including the notice of motion filed by the first, second and third defendants on 10 October 2018 and by the fourth defendant on 19 October 2018."]