Preston v Diaspora Holdings Pty Ltd; Diaspora Holdings Pty Ltd v Owners Corporation of Strata Plan 68608

[2019] NSWSC 651

Supreme Court of NSW

Built by Barristers,
For Australian Law.

1. Corporations
2. › Directors and officers
3. › representation
4. › whether solicitor’s retainer should be validated under s 1322(4)
5. › whether “just and equitable” to make order and whether opposing party in proceedings suffered “substantial injustice” by solicitors acting for the company.
1. Civil Procedure
2. › Stay of proceedings
3. › Inherent power
4. › Abuse of process
5. › Court may intervene and stay proceedings on basis of an abuse of process where challenge to corporate plaintiff’s authority to bring proceedings
6. › whether and when defendant has right to challenge plaintiff’s authority
1. challenge to authority not a substantive defence to plaintiff’s claim but brought by notice of motion
2. › consequences of distinction for further conduct of proceedings - judicial discretion to entertain application and appropriate circumstances to do so - Chancery rule of practice that Court ordinarily adjourn proceedings to allow opportunity for company to ratify proceedings or apply for validating order under Corporations Act, s 1322.
1. Civil Procedure
2. › Stay of proceedings
3. › Inherent power
4. › Abuse of process
5. › power to award costs where proceedings brought by corporate plaintiff without authority
6. › juridical basis and appropriate exercise of such power
7. › whether costs order properly made against solicitor for corporate plaintiff bringing proceedings without proper authority.