Sebastiano CANNAVO v Brian Hugh ALLEN & ANOR [2008] NSWCA 303

Sebastiano CANNAVO v Brian Hugh ALLEN & ANOR [2008] NSWCA 303

The available inference was that Flametime purchased the trailer and bobcat with company funds and the property was transferred to a related company by Mr Cannavo without documentation or commercial justification, amounting to conversion. The value of the equipment at the time of conversion could be assessed as the purchase price due to lack of evidence of depreciation. Alternatively, Mr Cannavo’s conduct contravened s 182 of the Corporations Act, justifying the order for repayment.

Jurisdiction
Australia
Judgment Date
04 November 2008
Procedural Posture
Civil Appeal / Appeal From Orders of Equity Division, Supreme Court of NSW
Outcome
Appeal dismissed with costs.
Legal Topics
['conversion' "director's Duties" 'liquidation' 'measure of Damages']
['corporate Law' 'civil Procedure'] ['conversion' "director's Duties" 'liquidation' 'measure of Damages']

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Procedural Posture

Civil Appeal / Appeal From Orders of Equity Division, Supreme Court of NSW

Legal Issues

  1. 1 ['Whether the appellant was liable for conversion of equipment purchased with company funds' 'Whether there was sufficient evidence of conversion or the value at time of conversion' 'Whether primary judge’s inference of conversion at purchase was sustainable']

Ratio Decidendi

The available inference was that Flametime purchased the trailer and bobcat with company funds and the property was transferred to a related company by Mr Cannavo without documentation or commercial justification, amounting to conversion. The value of the equipment at the time of conversion could be assessed as the purchase price due to lack of evidence of depreciation. Alternatively, Mr Cannavo’s conduct contravened s 182 of the Corporations Act, justifying the order for repayment.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed.' "Appellant to pay respondents' costs."]