Welker v Hewett [1969] HCA 53

Welker v Hewett [1969] HCA 53

Section 10A of the Road Maintenance (Contribution) Act, 1958-1965 (N.S.W.) does not validly impose liability on a director who, at the relevant time, is resident outside New South Wales and has no connection with New South Wales, either by presence or by involvement in the company's activities within the State. There is insufficient territorial nexus to support such extra-territorial operation of State law.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal From Supreme Court of New South Wales (court of Appeal)
Outcome
Appeal allowed
Legal Topics
['extra Territorial Operation of State Statutes' 'director Liability for Company Debts' 'interpretation of State Legislative Power']
['constitutional Law' 'statutory Interpretation'] ['extra Territorial Operation of State Statutes' 'director Liability for Company Debts' 'interpretation of State Legislative Power']

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Procedural Posture

Appeal / High Court Appeal From Supreme Court of New South Wales (court of Appeal)

Legal Issues

  1. 1 ['Whether s. 10A of the Road Maintenance (Contribution) Act, 1958-1965 (N.S.W.) validly imposes liability on a director resident outside New South Wales for payment of charges owed by a company' 'Whether there is a sufficient territorial nexus between the State of New South Wales and the appellant director to support imposition of liability under s. 10A']

Ratio Decidendi

Section 10A of the Road Maintenance (Contribution) Act, 1958-1965 (N.S.W.) does not validly impose liability on a director who, at the relevant time, is resident outside New South Wales and has no connection with New South Wales, either by presence or by involvement in the company's activities within the State. There is insufficient territorial nexus to support such extra-territorial operation of State law.

Court Disposition

Appeal allowed

Orders

  • ['Order of the Supreme Court of New South Wales set aside' 'Order nisi for statutory prohibition be made absolute with costs']