Lewis v Nortex Pty Ltd (In Liq); Lamru Pty Ltd v Kation Pty Ltd [2006] NSWSC 480

Lewis v Nortex Pty Ltd (In Liq); Lamru Pty Ltd v Kation Pty Ltd [2006] NSWSC 480

Lamru succeeded substantially on the conventions, stock fraud, and Mark Lewis payments issues; Lewis and Kation are liable for 70% of Lamru's costs and Lewis is liable for compound interest on amounts ordered to be paid to reconstitute the Nortex Unit Trust. The Liquidator may recover his costs out of company assets as his actions were not for his individual benefit nor unreasonable.

Jurisdiction
Australia
Judgment Date
23 May 2006
Procedural Posture
Equity Proceedings (statutory Appeal and Cross Claims) / Final Judgment and Orders
Outcome
Declarations and orders issued; partial costs awarded.
Legal Topics
['declaratory Relief' 'compound Interest' 'costs' 'breach of Trust' 'estoppel' 'convention Agreements in Accounting' 'fraud' 'fiduciary Duties']
['equity' 'trusts' 'corporations' 'civil Procedure'] ['declaratory Relief' 'compound Interest' 'costs' 'breach of Trust' 'estoppel' 'convention Agreements in Accounting' 'fraud' 'fiduciary Duties']

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Procedural Posture

Equity Proceedings (statutory Appeal and Cross Claims) / Final Judgment and Orders

Legal Issues

  1. 1 ['Form of declarations regarding trust accounts' 'Payment of compound interest for breach of trust' 'Loan account balances and adjustments' 'Allocation of costs between parties and funds' "Liquidator's entitlement to costs out of fund"]

Ratio Decidendi

Lamru succeeded substantially on the conventions, stock fraud, and Mark Lewis payments issues; Lewis and Kation are liable for 70% of Lamru's costs and Lewis is liable for compound interest on amounts ordered to be paid to reconstitute the Nortex Unit Trust. The Liquidator may recover his costs out of company assets as his actions were not for his individual benefit nor unreasonable.

Court Disposition

Declarations and orders issued; partial costs awarded.

Orders

  • ['Accounts for financial years 1991-1995 of Nortex to stand, subject to specified adjustments.' 'Conventions declared operative; financial years 1996-97 accounts to be prepared in accordance.' 'Specific add-back and interest amounts fixed for income calculation.' 'Payments to Mark Lewis held to be in breach of...