Orison Pty Ltd v Strategic Minerals Corporation NL; Cross & Ors v Devenish-Meares & Ors [1988] FCA 274

Orison Pty Ltd v Strategic Minerals Corporation NL; Cross & Ors v Devenish-Meares & Ors [1988] FCA 274

The relief sought against Strategic offered no legal or practical utility and would amount to an abuse of process, justifying summary dismissal of Orison's application against that party; however, the questions of standing and discretion regarding the declaratory relief against directors were not appropriate for summary disposal at this stage and should be addressed after the evidence is heard.

Parties
Applicant: Orison Pty Ltd; First Respondent: Strategic Minerals Corporation NL; Second Respondent: Peter Gullan Cross; Second Respondent: Jon Swire-Thompson; Third Respondent: Asha Capital Corporation Limited; Fourth Respondent: Asha Energy Pty Ltd; First Applicant (wag 52 of 1987): Peter Gullan Cross; First Applicant (wag 52 of 1987): Jon Swire-Thompson; Second Applicant (wag 52 of 1987): Leonas Reisgys; Third Applicant (wag 52 of 1987): Peter Ruttledge; First Respondent (wag 52 of 1987): Denis Devenish-Meares; Second Respondent (wag 52 of 1987): Richard John Tanner; Third Respondent (wag 52 of 1987): Walter Arthur Charles Martin
Jurisdiction
Australia
Judgment Date
03 June 1988
Procedural Posture
Civil / Ruling on Preliminary Motions; Summary Dismissal Application
Outcome
Application against Strategic Minerals Corporation NL summarily dismissed; claim against directors to proceed to trial.
Legal Topics
Misleading and Deceptive Conduct, Directors' Duties, Standing, Jurisdiction, Declaratory and Injunctive Relief, Rule in Foss V Harbottle, Summary Dismissal, Accrued Jurisdiction
Trade Practices Companies Law Practice and Procedure Federal Jurisdiction Misleading and Deceptive Conduct Directors' Duties Standing Jurisdiction +4 more

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Parties

Orison Pty Ltd

Applicant

Strategic Minerals Corporation NL

First Respondent

Peter Gullan Cross

Second Respondent

Jon Swire-Thompson

Second Respondent

Asha Capital Corporation Limited

Third Respondent

Asha Energy Pty Ltd

Fourth Respondent

Peter Gullan Cross

First Applicant (wag 52 of 1987)

Jon Swire-Thompson

First Applicant (wag 52 of 1987)

Leonas Reisgys

Second Applicant (wag 52 of 1987)

Peter Ruttledge

Third Applicant (wag 52 of 1987)

Denis Devenish-Meares

First Respondent (wag 52 of 1987)

Richard John Tanner

Second Respondent (wag 52 of 1987)

Walter Arthur Charles Martin

Third Respondent (wag 52 of 1987)

Procedural Posture

Civil / Ruling on Preliminary Motions; Summary Dismissal Application

Legal Issues

  1. 1 Whether the relief sought against Strategic Minerals Corporation NL should be summarily dismissed as futile or an abuse of process
  2. 2 Whether Orison Pty Ltd has standing to seek a declaration of breach against the directors under s.229(2) of the Companies (WA) Code, having regard to the rule in Foss v Harbottle
  3. 3 Whether the Federal Court has jurisdiction/power to grant the declaratory relief sought against directors under accrued jurisdiction

Ratio Decidendi

The relief sought against Strategic offered no legal or practical utility and would amount to an abuse of process, justifying summary dismissal of Orison's application against that party; however, the questions of standing and discretion regarding the declaratory relief against directors were not appropriate for summary disposal at this stage and should be addressed after the evidence is heard.

Court Disposition

Application against Strategic Minerals Corporation NL summarily dismissed; claim against directors to proceed to trial.

Orders

  • Application No. WAG 42 of 1987 dismissed as against the first respondent (Strategic).
  • Costs of the application reserved.