The Owners - Strata Plan No 67246 v Oaks Hotels & Resorts (NSW) No 1 Pty Ltd & Anor [2013] NSWSC 1866

The Owners - Strata Plan No 67246 v Oaks Hotels & Resorts (NSW) No 1 Pty Ltd & Anor [2013] NSWSC 1866

Leave to amend was refused because the proposed pleadings did not disclose an arguable trust, fiduciary duty or knowing receipt claim. The plaintiff had no arguable interest in the contractual rights alleged to be trust property, the Caretaker Agreement did not arguably create a trust or fiduciary relationship, clause 20 disclaimed relationships ordinarily importing fiduciary duties, and possession of keys and master keys did not amount to a transfer of possession of the building or common property. The knowing receipt amendments consequently failed with the trust and fiduciary claims.

Jurisdiction
Australia
Judgment Date
22 November 2013
Procedural Posture
Interlocutory Application / Notice of Motion Seeking Leave to Amend Commercial List Statement and Associated Relief in Summons
Outcome
The proposed amendments were not allowed.
Legal Topics
['amendment of Pleadings' 'arguable Cause of Action' 'fiduciary Duties' 'trust Relationship' 'knowing Receipt' 'caretaker Agreement' 'strata Property']
['civil Procedure' 'equity' 'contract Law' 'trusts'] ['amendment of Pleadings' 'arguable Cause of Action' 'fiduciary Duties' 'trust Relationship' 'knowing Receipt' 'caretaker Agreement' 'strata Property']

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Procedural Posture

Interlocutory Application / Notice of Motion Seeking Leave to Amend Commercial List Statement and Associated Relief in Summons

Legal Issues

  1. 1 ['Whether the plaintiff should be granted leave to amend its commercial list statement to plead breaches of trust, fiduciary duties and knowing receipt.' 'Whether the proposed trust and fiduciary duty amendments disclosed an arguable cause of action.' 'Whether contractual rights granted to the first defendant under the Caretaker Agreement, or possession of keys and master keys to common property, could constitute trust property or give rise to a fiduciary relationship.']

Ratio Decidendi

Leave to amend was refused because the proposed pleadings did not disclose an arguable trust, fiduciary duty or knowing receipt claim. The plaintiff had no arguable interest in the contractual rights alleged to be trust property, the Caretaker Agreement did not arguably create a trust or fiduciary relationship, clause 20 disclaimed relationships ordinarily importing fiduciary duties, and possession of keys and master keys did not amount to a transfer of possession of the building or common property. The knowing receipt amendments consequently failed with the trust and fiduciary claims.

Court Disposition

The proposed amendments were not allowed.

Orders

  • ["The paragraphs in the plaintiff's proposed amended pleading alleging breaches of trust and/or fiduciary duty were not allowed." 'The paragraphs seeking remedies as a result of such breaches were not allowed.' 'The paragraphs making up the knowing receipt claim against the second defendant were not allowed.']