Tagged: Supreme Court

Discloser of confidential business plan almost misses out on the fruits of its labour

Written by Peter Heerey AM, QC, Tom Cordiner & Alan Nash. Where confidential information about a plan for corporate recapitalisation was disclosed and there was a subsequent development by the recipient and completion of the transaction without further recourse to discloser, the issue at trial was whether elements of confidentiality made out and whether equitable compensation is payable.

Guarantors as ‘privies’ of a principal debtor – can they be bound by a decision of a Court in circumstances where they are not a party to litigation?

Co-authored by Andrew Kirby and Kieran Hickie: Guarantors commonly have some association or relationship with a principal debtor. If proceedings are taken against a principal debtor, but not a guarantor, resulting in a binding judgment, the Victorian Supreme Court has recently held that in subsequent proceedings against a guarantor, the guarantor is not a ‘privy’ of the principal debtor and therefore is not bound by the determination of issues in the earlier proceeding.

Automatic set-off is not that automatic

The decision is significant because it confirms that a payment of a dividend to a creditor does not necessarily extinguish the company’s claim for the balance in fact owing to it.