KTC v David

• Jurisdiction: Australia Federal only
• Judgment Date: 13 April 2022
• Neutral Citation: [2022] FCAFC 60
• Date: 13 April 2022
• Court: Full Federal Court (Australia)

Federal Court of Australia

KTC v David [2022] FCAFC 60

Appeal from:
File number:	NSD 838 of 2020
Judgment of:	WIGNEY, ANASTASSIOU AND JACKSON JJ
Date of judgment:	13 April 2022
Catchwords:	PRACTICE AND PROCEDURE – application for leave to appeal – whether decision of primary judge attended by sufficient doubt to warrant grant of leave – whether substantial injustice would result from a refusal of leave – where interlocutory orders have practical effect of finally determining the rights of a party to proceeding – whether claim involves speculation or conjecture, obviating any purported substantial injustice – leave to appeal granted ; PRACTICE AND PROCEDURE – application for leave to file and serve proposed further amended statement of claim – where proceeding involves numerous corporate entities and multiple complex commercial transactions – where proceeding raises questions of fact and law in relation to pleading of a dishonest and fraudulent design under the second limb of so-called rule in Barnes v Addy – relevant principles concerning the amendment and striking out of pleadings and summary dismissal – whether primary judge erred in concluding that claim of knowing assistance in dishonest and fraudulent design was not maintainable – appeal dismissed
Legislation:	Corporations Act 2001 (Cth) Federal Court of Australia Act 1976 (Cth) ss 24(1A), 31A, 31A(2), 37M, 37M(3) Federal Court Rules 2011 (Cth) rr 16.02, 16.02(1), 16.02(1)(b), 16.02(1)(c), 16.02(1)(d), 16.02(2), 16.02(2)(c), 16.02(2)(d), 16.21, 16.21(1)(c), 16.21(1)(e), 16.42, 16.43, 16.51, 16.53, 26.01 Judiciary Act 1903 (Cth) s 39B
Cases cited:	Aardwolf Industries LLC v Tayeh[2020] NSWCA 301 Advanced Holdings Pty Ltd v Commissioner of Taxation (2020) 281 FCR 149; [2020] FCAFC 157 Allianz Australia Insurance Limited v Delor Vue Apartments CTS 39788(2021) 396 ALR 27; [2021] FCAFC 121 Allstate Life Insurance Co v Australia and New Zealand Banking Group Ltd(1994) 217 ALR 226; [1994] FCA 636 Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 Aon Risk Services Australia Ltd v Australian National University(2009) 239 CLR 175; [2009] HCA 27 Arab Monetary Fund v Hashim (No 2)[1990] 1 All ER 673 Archer Capital 4A Pty Ltd as trustee for Archer Capital Trust 4A v Sage Group plc (No 2)(2013) 306 ALR 384; [2013] FCA 1098 Attorney-General v Wentworth (1988) 14 NSWLR 481 Australian Competition and Consumer Commission v NQCranes Pty Ltd[2021] FCA 1270 Baden v Société Générale pour Favoriser le Développement du Commerce et de l’Industrie en France SA[1992] 4 All ER 161; [1993] 1 WLR 509 Bank of Credit and Commerce International (Overseas) Ltd v Akindele[2001] Ch 437 Barclay Mowlem Construction Ltd v Dampier Port Authority & Anor (2006) 33 WAR 82; [2006] WASC 281 Barnes v Addy(1874) LR 9 Ch App 244 Bartlett v Swan Television & Radio Broadcasters Pty Ltd [1995] ATPR 41-434 Spiteri v Nine Network Australia Pty Ltd[2008] FCA 905 Batistatos v Roads and Traffic Authority(NSW)(2006) 226 CLR 256; [2006] HCA 27 Caason Investments Pty Ltd v Cao (2015) 236 FCR 322; [2015] FCAFC 94 Clough & Rogers v Frog(1974) 4 ALR 615 Construction, Forestry, Maritime, Mining and Energy Union v One Key Workforce Pty Ltd[2020] FCAFC 27 Coshott v Official Trustee in Bankruptcy, in the matter of the Bankrupt Estate of Michael Petrovic Lenin (deceased)[2019] FCA 913 Cropper v Smith (1884) 26 Ch D 700 Dalleagles Pty Ltd v Australian Securities Commission (1991) 4 WAR 325 Dare v Pulham(1982) 148 CLR 658 Davidson v Official Receiver[2021] FCAFC 73 Décor Corporation Pty Ltd v Dart Industries Inc(1991) 33 FCR 397; [1991] FCA 844 Dubai Aluminium Co Ltd v Salaam[2003] 2 AC 366 Ex parte Bucknell(1936) 56 CLR 221; [1936] HCA 67 Fair Work Ombudsman v Eastern Colour Pty Ltd[2011] FCA 803 Farah Constructions Pty Limited v Say-Dee Pty Limited(2007) 230 CLR 89; [2007] HCA 22 Forrestv Australian Securities and Investments Commission (2012) 247 CLR 486; [2012] HCA 39 Fuller v Toms (2012) 247 FCR 440; [2012] FCA 27 Gallo v Attorney-General (Full Court of the Supreme Court of Victoria, 4 September 1984) Granite Transformations Pty Ltd v Apex Distributions Pty Ltd (2018) 359 ALR 62; [2018] FCA 725 Groom v Crocker[1939] 1 KB 194 Hasler v Singtel Optus Pty Ltd(2014) 87 NSWLR 609; [2014] NSWCA 266 Hastwell v Kott Gunning[2021] FCAFC 70 House v The King(1936) 55 CLR 499; [1936] HCA 40 J C Techforce Pty Ltd & Steinhardt v Pearce, Neville & Oke Industrial Pty Ltd(1996) 138 ALR 522 Johnson Tiles Pty v Esso Australia Pty Ltd(2000) 104 FCR 564; [2000] FCA 1572 KTC v David (No 1)[2019] NSWSC 281 KTC v David (Pleadings)[2019] FCA 1566 KTC v David (Summary Dismissal)[2020] FCA 1012 KTC v Singh & Ors[2018] NSWSC 1510 Mathews v State of Queensland [2015] FCA 1488 Medich v Bentley-Smythe Pty Ltd [2010] FCA 494 Nationwide News Pty Limited v Rush(2020) 380 ALR 432; [2020] FCAFC 115 Nicholson v Morgan (No 3) [2013] WASC 110 Oztech Pty Ltd v Public Trustee of Queensland (2019) 269 FCR 349; [2019] FCAFC 102 Polar Aviation Pty Ltd v Civil Aviation Safety Authority (2012) 203 FCR 325; [2012] FCAFC 97 Rawson Finances Pty Ltd v Commissioner of Taxation [2016] FCAFC 95 Re-Engine Pty Ltd (in liq) v Fergusson (2007) 209 FLR 1; [2007] VSC 57 Research in Motion Ltd v Samsung Electronics Australia Pty Limited(2009) 176 FCR 66; [2009] FCA 320 Samsung Electronics Company Ltd v Apple Inc (2011) 217 FCR 238; [2011] FCAFC 156 Seven Network Limited v News Limited[2005] FCA 142 Shelton v National Roads and Motorists Association Ltd (2004) 51 ACSR 278; [2004] FCA 1393 Spencer v The Commonwealth(2010) 241 CLR 118; [2010] HCA 28 Tamaya Resources Ltd (In Liq) v Deloitte Touche Tohmatsu (A Firm) (2016) 332 ALR 199; [2016] FCAFC 2 Teakle Property Australia v Business Initiatives Pty Ltd[2021] FCA 13 Thomson v STX Pan Ocean Co Ltd[2012] FCAFC 15 Trade Practices Commission v Australian Iron & Steel Pty Ltd(1990) 22 FCR 305 Trade Practices Commission v Pioneer Concrete (Qld) Pty Ltd(1994) 52 FCR 164 Von Reisner v Commonwealth(2009) 177 FCR 531; [2009] FCAFC 97 Webster (Trustee) v Murray Goulburn Co-operative Co. Ltd (No 2) [2017] FCA 1260 Westpac Banking Corporation v Bell Group Ltd (in liq)(No 3) (2012) 44 WAR 1; [2012] WASCA 157 White Industries Aust Ltd v Commissioner of Taxation (2007) 160 FCR 298; [2007] HCA 511 X (Minors) v Bedfordshire County Council[1995] 2 AC 633 Young Investments Group Pty Ltd v Mann (2012) 293 ALR 537; [2012] FCAFC 107 Zibara v Ultra Management (Sports) Pty Ltd(2021) 283 FCR 18; [2021] FCAFC 4
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Number of paragraphs:	446
Date of hearing:	25 February 2021
Counsel for the Appellant:	Mr P Collinson QC and Ms M Loughnan QC and Mr C Parkinson SC
Solicitor for the Appellant:	HWL Ebsworth

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