Australian Securities and Investments Commission v Daly (Liability Hearing)

• Jurisdiction: Australia Federal only
• Judgment Date: 03 April 2023
• Neutral Citation: [2023] FCA 290
• Date: 03 April 2023
• Court: Federal Court

Federal Court of Australia

Australian Securities and Investments Commission v Daly (Liability Hearing) [2023] FCA 290

File number:	QUD 269 of 2020
Judgment of:	CHEESEMAN J
Date of judgment:	3 April 2023
Date of publication of reasons:	4 April 2023
Catchwords:	CORPORATIONS — civil penalty proceedings — liability phase — duties of officers of responsible entity of a registered managed investment scheme — whether first respondent is an “officer” of the responsible entity for the purposes of the Corporations Act 2001 (Cth) — whether officers of responsible entity breached duties owed pursuant to s 601FD(1) of the Act — Held: contravention established. ; PRACTICE AND PROCEDURE — pleadings — where proceedings based on an originating process, amended concise statement and amended statement of claim — where first respondent alleges claims against him not sufficiently pleaded — whether procedural unfairness occasioned — Held: ASIC’s claim against first respondent adequately disclosed, no procedural unfairness occasioned. ; EVIDENCE — where none of the respondents gave evidence — application of rule in Jones v Dunkel in civil penalty proceedings — Held: appropriate to draw Jones v Dunkel inferences in respect of issues on which respondents did not give evidence. ; EVIDENCE — where Australian Securities and Investments Commission (ASIC) did not call a witness who could have given relevant evidence — whether evidence from other sources should be discounted by reason of ASIC not calling the witness — Held: no procedural unfairness. No basis to discount other evidence.
Legislation:	Corporations Act 2001 (Cth) ss 9, 601FD(1), 601FD(3), Evidence Act 1995 (Cth) s 140(2) Federal Court Rules 2011 (Cth) r 16.02(1)
Cases cited:	Adams v Director of Fair Work Building Industry Inspectorate [2017]; FCAFC 228; 258 FCR 257 Adler v Australian Securities and Investments Commission [2003] NSWCA 131; 179 FLR 1 Allianz Australia Insurance Limited v Delor Vue Apartments CTS 39788 [2021] FCAFC 121; 287 FCR 388 Australian Building and Construction Commissioner v Hall [2018] FCAFC 83; 261 FCR 347 Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited [2019] FCA 1284 Australian Securities and Investments Commission v Australian Investors Forum Pty Ltd (No 2) [2005] NSWSC 267; 53 ACSR 305 Australian Securities and Investment Commission v Australian Property Custodian Holdings Ltd (recs and mgrs apptd) (in liq) (Controllers apptd) (No 3) [2013] FCA 1342 Australian Securities and Investments Commission v Avestra Asset Management [2017] FCA 497; 348 ALR 525 Australian Securities and Investments Commission v Getswift [2021] FCA 1384 Australian Securities and Investments Commission v Healey [2011] FCA 717; 196 FCR 291 Australian Securities and Investments Commission v Hellicar [2012] HCA 17; 247 CLR 345 Australian Securities and Investments Commission v King [2020] HCA 4; 270 CLR 1 Australian Securities and Investments Commission v Lewski [2018] HCA 63; 266 CLR 173 Australian Securities and Investments Commission v Linchpin Capital Group Ltd [2018] FCA 1104 Australian Securities and Investments Commission v Linchpin Capital Group Ltd (No 2) [2019] FCA 398 Australian Securities and Investment Commission v Westpac Securities Administration Limited [2019] FCAFC 187; 272 FCR 170 Australian Securities Commission v AS Nominees Limited [1995] FCA 1663; 62 FCR 504 Banque Commerciale SA, En liquidation v Akhil Holdings Ltd [1990] HCA 11; 169 CLR 279 Briginshaw v Briginshaw [1938] HCA 34; 60 CLR 336 Commissioner for Corporate Affairs v Bracht [1989] VR 821 Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing & Allied Services Union of Australia v Australian Competition and Consumer Commission [2007] FCAFC 132; 162 FCR 466 Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd [2015] FCAFC 25; 230 FCR 298 Fair Work Ombudsman v Maritime Union of Australia [2017] FCA 1363 Hancock v Rinehart [2015] NSWSC 646; 106 ACSR 207 Heiko Constructions T/A Heiko Constructions Pty Ltd v Tyson [2020] FCAFC 208; 282 FCR 297 Jones v Dunkel [1959] HCA 9; 101 CLR 298 Kuhl v Zurich Financial Services Australia Ltd [2011] HCA 11; 243 CLR 361 LM Investment Management Ltd (receiver apptd) (in liq) v Drake & Ors [2019] QSC 281 Morley v Australian Securities and Investments Commission [2010] NSWCA 331; 274 ALR 205 MLC Limited v Crickitt (No 2) [2017] FCA 937 Nona on behalf of the Badulgal, Mualgal and Kaurareg Peoples (Warral & Ului) v State of Queensland [2020] FCA 1353 Oztech Pty Ltd v Public Trustee of Queensland [2019] FCAFC 102; 269 FCR 349 R v Byrnes [1995] HCA 1; 183 CLR 501 Sabapathy v Jetstar Airways [2021] FCAFC 25 Sullivan v Trilogy Funds Management Limited [2017] FCAFC 153 Trilogy Funds Management Ltd (as the responsible entity for the Pacific First Mortgage Fund) v Sullivan (No 2) [2015] FCA 1452; 331 ALR 185 United Petroleum Australia Pty Ltd v Herbert Smith Freehills [2018] VSC 347; 128 ACSR 324 Waters v Mercedes Holdings Pty Limited [2012] FCAFC 80; 203 FCR 218 Whitehorn v The Queen [1983] HCA 42; 152 CLR 657 Windbox Pty Ltd v Daguragu Aboriginal Land Trust (No 3) [2020] NTSC 21
Division:	General Division
Registry:	Queensland
National Practice Area:	Commercial and Corporations
Sub-area:	Corporations and Corporate Insolvency
Number of paragraphs:	396
Date of last submissions:	1 March 2022
Date of hearing:	7 March 2022 – 11 March 2022
Counsel for the Applicant	Ms M H Hindman QC, Mr L Clark and Mr E Robinson
Solicitor for the Applicant	Gadens Lawyers
Counsel for the First Respondent	Mr G Coveney and Mr D Freeman
Solicitor for the First Respondent	Assembly Law
Counsel for the Second Respondent	Mr P K O’Higgins
Solicitor for the Second Respondent	McCullough Robertson

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