Salfinger v Niugini Mining (Australia) Pty Ltd (No. 3) [2007] FCA 1532

Salfinger v Niugini Mining (Australia) Pty Ltd (No. 3) [2007] FCA 1532

The purported first assignment was not effected before Arkaroola was wound up, and the Court found the document was fraudulently backdated and not executed by a person authorised to bind Arkaroola. In any event, Arkaroola's Trade Practices Act damages claims and its tortious and equitable causes of action were not capable of assignment. Because Crocodile acquired no effective assignment from Arkaroola, the subsequent purported assignment from Crocodile to the applicant was of no effect.

Jurisdiction
Australia
Judgment Date
08 October 2007
Procedural Posture
Federal Court Proceeding Alleging Wrongful Termination of an Asset Transfer Deed and Claims Under the Trade Practices Act, Tort and Equity, Relying on Purported Assignments of Arkaroola Resources Pty Ltd's Causes of Action / Trial of Separate Question Under O 29 R 2 of the Federal Court Rules as to Whether the Purported Assignments Were Effective
Outcome
Separate question answered No; judgment for the respondents with costs, including reserved costs, subject to submissions on whether costs should be on an indemnity basis.
Legal Topics
['assignment of Causes of Action' 'winding Up and Void Dispositions' 'standing to Sue as Assignee' 'assignability of Trade Practices Act Damages Claims' 'assignability of Tortious and Equitable Claims' 'separate Question']
['corporations Law' 'trade Practices' 'equity' 'torts' 'civil Procedure'] ['assignment of Causes of Action' 'winding Up and Void Dispositions' 'standing to Sue as Assignee' 'assignability of Trade Practices Act Damages Claims' 'assignability of Tortious and Equitable Claims' 'separate Question']

Case Brief

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Procedural Posture

Federal Court Proceeding Alleging Wrongful Termination of an Asset Transfer Deed and Claims Under the Trade Practices Act, Tort and Equity, Relying on Purported Assignments of Arkaroola Resources Pty Ltd's Causes of Action / Trial of Separate Question Under O 29 R 2 of the Federal Court Rules as to Whether the Purported Assignments Were Effective

Legal Issues

  1. 1 ['Whether the purported assignment from Arkaroola Resources Pty Ltd to Crocodile International Manufacturing Limited dated 1 June 2002 was executed before Arkaroola was wound up' 'Whether the person who purportedly executed the first assignment had authority to bind Arkaroola' "Whether Arkaroola's alleged causes of action under the Trade Practices Act, in tort and in equity were capable of assignment" 'Whether the purported assignment from Crocodile to the applicant dated 16 November 2006 could be effective if the first assignment was ineffective']

Ratio Decidendi

The purported first assignment was not effected before Arkaroola was wound up, and the Court found the document was fraudulently backdated and not executed by a person authorised to bind Arkaroola. In any event, Arkaroola's Trade Practices Act damages claims and its tortious and equitable causes of action were not capable of assignment. Because Crocodile acquired no effective assignment from Arkaroola, the subsequent purported assignment from Crocodile to the applicant was of no effect.

Court Disposition

Separate question answered No; judgment for the respondents with costs, including reserved costs, subject to submissions on whether costs should be on an indemnity basis.

Orders

  • ['The question whether the purported assignments of the causes of action from Arkaroola Resources to Crocodile dated 1 June 2002 and from Crocodile to the applicant dated 16 November 2006 are effective to assign the causes of action that Arkaroola had against the first and second respondents to Crocodile and then to...