Milfull v Terranora Lakes Country Club Ltd [1999] FCA 963

Milfull v Terranora Lakes Country Club Ltd [1999] FCA 963

Claims against respondents for breach of duty (loss of value of shares) should not proceed until outcome of company’s Supreme Court proceedings. Claim for negligence insufficiently pleaded and struck out. Claims for personal loss (occupancy rights, misleading conduct) may proceed; procedural orders made to strike out certain paragraphs and adjourn for further hearing.

Jurisdiction
Australia
Judgment Date
16 July 1999
Procedural Posture
Representative Proceedings (group Members; Shareholders) / Interlocutory Application – Striking Out and Procedural Orders
Outcome
Certain claims struck out; case adjourned for further hearing (costs and directions); respondents permitted to amend defences.
Legal Topics
['derivative Actions' 'proper Plaintiff' 'representative Proceedings' 'jurisdiction and Transfer' 'negligence' 'misleading and Deceptive Conduct']
['corporations Law' 'procedure – Cross Vesting' 'trade Practices'] ['derivative Actions' 'proper Plaintiff' 'representative Proceedings' 'jurisdiction and Transfer' 'negligence' 'misleading and Deceptive Conduct']

Case Brief

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Procedural Posture

Representative Proceedings (group Members; Shareholders) / Interlocutory Application – Striking Out and Procedural Orders

Legal Issues

  1. 1 ["Whether shareholders can pursue loss separate from company's loss" 'Proper plaintiff for claims based on breach of duty' 'Whether claims against accountants and receivers in negligence are maintainable' 'Jurisdictional and cross-vesting issues – transfer to Supreme Court' 'Scope of representative proceedings']

Ratio Decidendi

Claims against respondents for breach of duty (loss of value of shares) should not proceed until outcome of company’s Supreme Court proceedings. Claim for negligence insufficiently pleaded and struck out. Claims for personal loss (occupancy rights, misleading conduct) may proceed; procedural orders made to strike out certain paragraphs and adjourn for further hearing.

Court Disposition

Certain claims struck out; case adjourned for further hearing (costs and directions); respondents permitted to amend defences.

Orders

  • ['Paragraphs 70 and 78(d) of Amended Statement of Claim struck out.' 'Respondents granted leave to amend defences.' 'Matter adjourned for further hearing on costs and directions.']